Ration shop loans fall under priority lending

Loans given to operators of fair price shops (FPSs) by commercial banks and financial institutions will now be treated as priority sector lending. These shops will also be given priority in opening STD booths.

These are among the measures taken by the food ministry to improve the economic viability of the FPSs. The ministry had received reports that running an FPS was not an economically-viable proposition without malpractices.

The department of banking has agreed to treat credit to FPSs as priority sector lending to make cheaper finance available to these shop owners.

It has also prepared the guidelines for this purpose which have been conveyed to state governments as well as to the federations of the FPS owners, according to food ministry sources.

The communication ministry, too, has concurred with the food ministry's suggestion of setting up STD booths at the FPSs to supplement the income of these shop owners. This has also been conveyed to states.

Besides, the food ministry has decided to involve women and ex-servicemen in the operation of the public distribution system (PDS). As such, priority would be given to co-operative societies of women and ex-servicemen in issuing licences for running FPSs. Guidelines for this purpose had been sent to the states, the sources said.

The process of identification of additional five million poorest of the poor families facing the risk of hunger for inclusion in the Antyodaya Ann Yojna (AAY) is in advance stages.

Over 3.32 million such households have already been given ration cards to enable them to draw wheat and rice from FPSs at Rs 2 and Rs 3 per kg, respectively.

The other poor households that are not entitles for AAY are being given BPL (below poverty line) ration cards for supplying subsidised foodgrains.

Besides, the families of migrant labourers, displaced persons and homeless are being issued special ration entitlement slips to allow them to get foodgrains from the FPSs.

This work is being undertaken by states under the guidelines circulated by the food ministry.

These measures have helped improve the offtake of foodgrains allocated by the Centre to states for the BPL families to 78 per cent of the allotment. The earlier figure was around 70 per cent, the sources said.