FAQ

Center increases its assistance to states for PDS operation

Tags: Government Schemes

Taking into account the increasing cost in the operation of the public distribution system (PDS), the central government has increased the assistance paid to the state government/Union Territories for the intra-state movement of the food grains and the margin paid to the operator of the fair price shops.

The Public distribution system under which free or subsidized food grains are provided to nearly 80 crore eligible population through Fair Price Shops (FPS) also known as ration shops.

After the enactment of the Nation Food Security act 2013 the national PDS system is governed by this act. . 

Under the National Food Security Act 2013, the central government provides assistance to the state government /Union Territories (UT) for transportation of grains and pays margins to the fair price shop owner. 

The central government has categorized the states and UT into two category 

Special category states/UT

• States in Hilly areas, North Eastern States and islands are special category states.
• Hilly area states/UT are; Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Ladakh 
• North Eastern states: Sikkim, Nagaland, Manipur, Arunachal Pradesh, Mizoram, Assam, Tripura and Manipur 
• Islands: Andaman and Nicobar, Lakshadweep 

General Category:

Rest of the States and UT 

Revision of the central assistance for Special category states 

• intra-state transportation has been increased to ₹195 per quintal from ₹100 per quintal, 
• while margin of FPS dealers has been hiked to ₹180 per quintal from ₹143 per quintal and
•  additional margin to ₹26 per quintal from ₹17 per quintal,

 Revision of the central assistance for special category states/UT

• intra-state transportation  has been increased to ₹195 per quintal from ₹100 per quintal, 
• margin of FPS dealers has been hiked to ₹180 per quintal from ₹143 per quintal and 
• additional margin to ₹26 per quintal from ₹17 per quintal.

However the enhanced central assistance will be provided to those states /UT which have undertaken reform in the PDS system.

National Food Security Act (NFSA)

• The Public distribution system in India is covered under the National Food Security Act 2013.  It was implemented on 10 September 2013.
• It covers all the State and Union Territories in India.
• The scheme is administered by the Union Ministry of Consumer Affairs Food and Public Distribution.
• The Act provides for coverage of up to 75% of the rural population and up to 50% of the urban population for receiving subsidized food grains under Targeted Public Distribution System (TPDS), thus covering about two-thirds of the population. 
• Food Grains are provided to beneficiaries in two categories; Antodaya Anna Yojana (AAY) and Priority Household (PHH).
• The Antodaya Anna Yojana beneficiaries get 35 kg of food grains per month and the Priority Household gets 5kg per person per month.
• The beneficiary gets rice/wheat or coarse cereals at a highly subsidized price.