Question : CLOSURE OF FPS DUE TO INCREASE IN PRICE



(a) whether the Government have received any complaints regarding the recent price rise of ration items distributed through Public Distribution System which has adversely affected the PDS;

(b) if so, the details thereof;

(c) whether the Government are aware that Public Distribution System is collapsing due to the price rise of ration items distributed through PDS;

(d) if so, the number of Fair Price Shops closed as a result thereof, State-wise;

(e) the estimated number of persons have become jobless due to closure of FPS; and

(f) the steps taken by the Government in this regard?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ( SHRI SRIRAM CHAUHAN )

(a), (b), (c), (d), (e) & (f) : With a view to neutralise the financial burden consequent upon the hike in Minimum Support Price (MSP)/Procurement Price and to contain the food subsidy budget to a manageable level, Central Issue Prices (CIPs) of PDS foodgrains are revised from time to time. The CIPs of foodgrains being distributed under PDS were hiked on 1.4.2000 which have been subsequently revised downwards on 25.7.2000. The prices of PDS foodgrains are still lower than the open market prices, specially for the people living below poverty line (BPL). The allocation to BPL families has been doubled from 10 Kg to 20 Kg per family per month at 50% of economic cost with effect from 1.4.2000.

Government have not received any reports about closure of FPS attributable to revision of CIP of foodgrains.

State Governments have been advised to include additional items of daily use under PDS taking into account the local priorities in order to improve the viability of the Fair Price Shops. A statement showing additional items being issued by various States/UTs through PDS outlets is as per Annexure.

With the objective of making available quality consumer goods at affordable prices and to improve the viability of fair price shops apart from containing inflation, a scheme titled `Sarvapriya` has been launched. The scheme envisages distribution of eleven selected commodities of daily use namely, Arhar Dal, Gram Dal, Malka red, Urad whole, Salt, Tea, Toilet Soaps, Detergent cake, Exercise Notebooks, Edible Oil and Toothpaste on no-profit no-loss basis. This is a voluntary scheme optional for adoption by the State Governments.

ANNEXURE REFERRED TO IN REPLY TO PARTS (a), (b), (c), (d), (e) & (f) OF UNSTARRED QUESTION NO. 4973 FOR ANSWER IN THE LOK SABHA ON 25.08.2000.

STATEMENT SHOWING ADDITIONAL COMMODITIES DISTRIBUTED THROUGH PDS OUTLETS

Sl.State/UT	Status of Additional Commodities Included for Distribution	As Repor-	through PDS outlets	ted on
1.Andhra Pradesh Iodised Salt Nivedan Tea, Janata Sarees, Soap, Pulses, Dhoties, Onions, Tomatoes, Redgramdal Chillies, Tamarind, Vijay brand Sunflower Oils, Groundnut Oil & Garlic distributed through FPS. 8.12.98

2.Arunachal Pradesh Iodised Salt, Tea, Pulses, Soaps, Edible Oils are being distributed. 31.3.97

3.Assam Candle, Matches, Washing Soaps and Exercise books distributed. 31.3.97

4.Bihar Introduced Pulses, Controlled Cloth and Edible Oil w.e.f. 1/9/92 through mobile FPSs. 31.3.97

5.Gujarat Tea, Toilet Soap, Washing Soap, Washing Powder, Biscuits, Chilly powder, Turmeric powder, Dhana powder, spices, Toothpaste, Toothpowder, Tooth Brush, Shaving Cream on experimental basis in Ahedabad city & Ahmedabad District & Iodized Salt (in tribal areas) being distributed. 27.10.99 6.Haryana Tea, Soap, Iodised Salt, Pulses and Exercise Books being distributed through Confed retail outlets in Faridabad & Bhiwani District. 22.4.99

7Himachal Pradesh Tea, Pulses, Soap, Salt, Exercise Books, Janata Sarees & Dhoties being distributed. 31.3.97

8.Jammu & Kashmir Iodised Salt distributed through PDS in only two districts: Leh & Kargil (Ladakh). 22.1.99

9.Karnataka Iodised Salt, Tea, Soap, Exercise Books, Janata Sarees, Dhoties and ORS bring distributed. 31.3.97 10.Kerala Distributed through Maveli Stores run by Civil Supplies Corporation many items. 31.3.97 11.Madhya Pradesh Tea, Soap, Salt, Controlled Cloth and Exercise Books being distributed. 31.3.97 12.Maharashtra Soap, Salt, Tur Dal, Tea being distributed. 31.3.97 13.Manipur Iodised Salt being distributed. 31.3.97 14.Meghalaya Iodised Salt, Washing Soap and Matches distributed in some areas 31.3.97 15.Rajasthan Tea & Soap being distributed, Iodised Salt, Text Books, Janata Saries, Dhoties, M. box, E.Books. 31.3.97 16.Sikkim Iodised Salt being distributed. 31.3.97 17.Tamil Nadu Iodised Salt, Pulses, Tea, Text Books, Baby food, Jowar, Bajra, Maize, Ragi and Soap are distributed. 27.9.99 18.Tripura Iodised Salt and Palmolein Oil is distributed. 22.12.98 19.Uttar Pradesh 21 additional commodities including iodised Salt being distributed. 31.3.97 20.West Bengal Tea, Spices, Exercise books, Matches and Iodised Salt (in some areas) being distributed. 14.1.99 21.A&N Islands FPSs selling wide range of other commodities. 31.3.97 22.D&N Haveli Iodised Salt, Pulses, Match Boxes and Tea being distributed. 31.3.97 23.Lakshadweep Iodised Salt, Text Books, Soaps, Tea, Matches, Pulses being distributed. 31.3.97