The Centre’s decision to raise the commission for fair price shop dealers by just 10 paise per kilogram has triggered strong opposition from ration dealer associations, even as the Union Cabinet approved a ₹25,530 crore outlay under the SARTHAK-PDS scheme to modernise India’s Public Distribution System (PDS).

The Union Cabinet recently cleared the continuation of the SARTHAK-PDS scheme for 2026-31 with a central allocation of ₹25,530 crore. The scheme aims to strengthen intra-state foodgrain transportation, improve handling infrastructure and drive technology-led reforms across the ration distribution network.

However, the All India Fair Price Shop Dealers Federation said the latest increase in dealer commission is grossly inadequate and fails to address rising operating costs faced by fair price shop owners.

Calling the revision a “cruel joke,” the federation said over 5.5 lakh ration dealers and their families had been waiting for a meaningful revision in margins for the past four years.

“While dearness allowance for central government employees is revised every six months in line with inflation, ration dealers have received only a negligible increase after years of waiting,” the federation said in a statement.

The protest highlights growing friction between the government and fair price shop operators, who form the backbone of India’s subsidised foodgrain distribution network serving nearly 80 crore beneficiaries under the National Food Security Act.

The federation also referred to a 2020 survey conducted through the World Food Programme (WFP), an independent organisation operating under the United Nations framework, following a 13-day nationwide agitation by ration dealers.

According to the federation, the survey had proposed significantly higher dealer commissions based on the size of ration shops and the number of ration cards attached to them. The recommendations reportedly suggested commissions of ₹2.28 per kg for large shops, ₹4.57 per kg for medium-sized shops and up to ₹9 per kg for smaller shops.

The federation alleged that despite the survey findings, the recommendations were never implemented by the Centre.

Dealer bodies argue that the economics of running fair price shops have become increasingly difficult due to higher transportation expenses, electricity costs, manpower requirements and mandatory digital compliance measures such as Aadhaar authentication and e-POS operations.

While the SARTHAK-PDS scheme is expected to strengthen the broader ration distribution ecosystem through automation and logistics upgrades, dealer associations say the viability of individual ration shops remains under pressure without a substantial increase in margins.

The federation said its national committee will meet next week to decide its next course of action, indicating the possibility of renewed protests if demands remain unmet.
 

Published on: May 27, 2026 6:18 PM IST