Food Minister Pralhad Joshi confirmed on Wednesday that the central government has no immediate proposal to increase the margins for fair price shop (FPS) dealers under the Targeted Public Distribution System (TPDS).
In response to a written query in the Lok Sabha, Joshi explained that while the Centre has established margin rates, state governments have the flexibility to set actual rates that can exceed the central norms.
According to the revised guidelines issued in April 2022 under the Food Security (Assistance to State Governments) Rules, 2015, FPS dealers in general category states receive a margin of ₹90 per quintal, along with an additional ₹21 per quintal. For special category states, the dealer margin is set at ₹180 per quintal, with an extra ₹26 per quintal.
“At present, no proposal for further enhancement of margin is under consideration by the government,” Joshi clarified.
He highlighted that the TPDS, part of the National Food Security Act (NFSA), is jointly managed by the central and state governments, with operational responsibilities such as licensing, supervision, and monitoring of fair price shops falling entirely to state and union territory governments.
“The Central Government has no role to play in determining the actual rate of fair price shop dealers' margin, commission, honorarium, etc., or in making payments to fair price shops,” Joshi stated.
The central government’s role is limited to providing assistance to states and union territories to cover expenses related to the intra-state movement of foodgrains and the FPS dealers’ margin under the NFSA.
The TPDS (Control) Order, 2015 grants states two key powers: the authority to set and periodically review FPS dealers’ margins to ensure operational viability, and the ability to permit the sale of non-TPDS commodities to enhance the economic sustainability of fair price shops.
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