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fair price shop Related: Food Security in India – Notes (Economics, C...
Fair Price Shop means a shop which has been licensed to distribute essential commodities by an order issued under section 3 of the Essential Commodities Act, 1955, to the ration card holders under the Targeted Public Distribution System.The term is defined in Section 2(4) of National Food Security Act, 2013.It is the responsibility of every State Government to establish institutionalised licensing arrangements for fair price shops in accordance with the relevant provisions of the Public Distribution System (Control) Order, 2001 made under the Essential Commodities Act, 1955, as amended from time to time for efficient operations of the Targeted Public Distribution System.
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fair price shop Related: Food Security in India – Notes (Economics, C...
Fair Price Shop and Food Security in India

Fair Price Shops (FPS) play a crucial role in ensuring food security in India. They are government-run shops that distribute essential commodities to the economically disadvantaged sections of society at subsidized rates. These shops are an integral part of the Public Distribution System (PDS) in India, which aims to provide food and other essential items to the vulnerable population.

What is Food Security?

Food security refers to the availability, accessibility, and affordability of food to all individuals at all times. It is a fundamental right recognized by the Indian government, and several measures have been taken to ensure its implementation.

The Role of Fair Price Shops

Fair Price Shops act as a crucial link between the government and the beneficiaries of the PDS scheme. They serve as distribution centers for essential commodities such as rice, wheat, sugar, and kerosene. The primary objective of these shops is to provide food grains to eligible households at subsidized rates.

Subsidized Rates

The government procures food grains from farmers at Minimum Support Prices (MSP) and provides them to fair price shops at subsidized rates. This ensures that the economically weaker sections of society can purchase essential commodities at affordable prices. The subsidized rates are significantly lower than the market prices, making it accessible for those who cannot afford food at market rates.

Identification and Eligibility

To ensure that the benefits reach the intended beneficiaries, the government has implemented a system of ration cards. These cards are issued to eligible households based on their socio-economic status. Fair price shops distribute the subsidized food grains based on the quota and entitlement specified on the ration card.

Challenges and Reforms

While fair price shops play a crucial role in food security, there have been several challenges associated with their functioning. These include issues like corruption, leakages, and inefficiencies in the distribution system. To address these challenges, the government has introduced various reforms such as computerization of the PDS, the use of biometric identification systems, and direct benefit transfers.

In conclusion

Fair Price Shops are an essential component of the PDS and contribute significantly to food security in India. They ensure that essential commodities reach the economically disadvantaged sections of society at affordable prices. However, there is a need for continuous reforms and monitoring to address the challenges and make the system more efficient and transparent.
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fair price shop Related: Food Security in India – Notes (Economics, Class 9)
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