Fair Price Shop (FPS) dealers across India have voiced strong opposition to the Union Cabinet's decision to increase their commission by a mere 10 paise per kilogram. This minimal adjustment has been widely condemned as inadequate, particularly as the government simultaneously approved a substantial ₹25,530 crore outlay for the SARTHAK-PDS scheme, aimed at modernizing the country's Public Distribution System.
The All India Fair Price Shop Dealers Federation described the commission revision as a "cruel joke," highlighting that over 5.5 lakh ration dealers and their families have been awaiting a meaningful increase in their margins for four years. They argue that while dearness allowance for central government employees is regularly adjusted for inflation, ration dealers have received only a negligible increment after years of waiting.
Rising Costs Squeeze Ration Shop Viability
Dealer associations contend that the economics of operating a fair price shop have become increasingly challenging. They point to escalating expenses, including higher transportation costs, electricity bills, and the need for more manpower. Furthermore, mandatory digital compliance measures, such as Aadhaar authentication and e-POS operations, add to their operational burden without proportional compensation.
The federation referenced a 2020 survey, reportedly conducted through the World Food Programme (WFP) following a nationwide agitation, which had proposed significantly higher dealer commissions. These recommendations suggested rates of ₹2.28 per kg for large shops, ₹4.57 per kg for medium-sized shops, and up to ₹9 per kg for smaller establishments, based on their size and the number of ration cards served. The federation alleges that these findings were never implemented by the Centre.
SARTHAK-PDS vs. Dealer Livelihoods
The SARTHAK-PDS scheme, approved for 2026-31, aims to enhance intra-state foodgrain transportation, improve handling infrastructure, and implement technology-driven reforms across the ration distribution network. While these systemic upgrades are expected to strengthen the broader ecosystem, dealer associations maintain that the individual viability of ration shops remains under severe pressure without a substantial increase in their operating margins.
The protest underscores growing friction between the government and fair price shop operators, who form the essential backbone of India's subsidized foodgrain distribution network, serving nearly 80 crore beneficiaries under the National Food Security Act. The federation has announced that its national committee will convene next week to determine its future course of action, signaling the potential for renewed protests if their demands for a more substantial commission increase remain unaddressed.