KOCHI: An expert committee formed by the Kerala government to study the issues faced by Fair Price Shop (FPS) dealers has proposed significant changes to the state’s public distribution system (PDS).
The committee has recommended reducing the number of ration shops from 13,872 to 10,000, increasing the retail price of non-priority (subsidy) rice and sugar, and enforcing stricter controls on opening new ration shops.
The three-member committee’s report, submitted to the food and civil supplies department by the end of 2024, is yet to be discussed or acted upon. However, it has validated the ration traders’ demand for a timely revision of their wage system, which has remained unchanged since 2018.
As per the report, simply increasing wages to secure financial assistance from the government is not a sustainable solution and may lead to a major crisis in the future.
Instead, it suggests diversifying ration shops and providing more services through the K-Store scheme that aims to revamp conventional fair price shops by leveraging modern technology. The expert committee suggests that by increasing the retail price of rice in the Non-Priority Subsidy (NPS) from Rs 4 to Rs 6 per kg and that of Non-Priority Non-Subsidy (NPNS) rice from Rs 10.90 per kg, the government can raise the commission of ration dealers. Other key recommendations of the panel include rationalising existing shops to issue a maximum of 800 cards each.
‘Commission structure not revised in the last six years’
The government has also been advised to examine the viability of 85 shops that distribute less than 15 quintals of food grains. As of March 31, 2024, Kerala had 94,31,027 valid ration cards and 13,872 ration shops.
Kerala State Retail Ration Dealers’ Association organising secretary N Shijeer said over 150 shops were shut down in recent times due to inadequate government commissions, delayed payments, and soaring wages and rent.
“Portability — which allows card holders to buy from any rations shops — has exacerbated the issues, making it challenging for dealers to cover expenses. Many dealers are finding it difficult to make ends meet, and unless the commission paid to them is substantially increased, numerous rations shop owners may be forced to down shutters,” he said.
“The current commission structure for FPS was formulated in 2018, when electronic point of sale (E-PoS) machines were introduced, and has remained unchanged since. The existing structure ensures a monthly commission of Rs 18,000 for selling 45 quintals of food grain — Rs 8,500 in government support and Rs 220 per quintal,” Shijeer said.
According to him, despite repeated requests, the commission structure has not been revised in the last six years. For shops selling above 45 quintals, the additional income works out to Rs 180 per quintal.
