Govt hikes central assistance paid to states for transporting PDS grains & margin of FRP dealers

The Centre has increased the central assistance paid to states for meeting the expenditure towards intra-state movement and handling of PDS grains as well as margins paid to fair price shop dealers.

The revised norms of central assistance will be applicable from April 1 to those states governments and union territories who comply with the reforms specified in section l2 of the National Food Security Act (NFSA) and the directions given by the central government from time to time.

As per the revised norms, the central assistance for intra-state transportation has been increased to Rs 70 per quintal from Rs 65 per quintal, while that of margin of FPS dealers been hiked to Rs 90 per quintal from Rs 70 per quintal and additional margin to Rs 21 per quintal from Rs 17 per quintal for general category states, an official statement said.

In case of north eastern and hilly states, the central assistance for intra-state transportation has been increased to Rs 195 per quintal from Rs 100 per quintal, while margin of FPS dealers has been hiked to Rs 180 per quintal from Rs 143 per quintal and additional margin to Rs 26 per quintal from Rs 17 per quintal, it said.

Higher central assistance has been given to north eastern, hilly and island regions owing to difficult conditions as compared to general category states and UTs in the process of delivery of foodgrains.

The enhanced rate of Central Assistance will improve the viability of more than 5 lakh Fair Price Shops across the country, the statement added.

The NFSA provides for central assistance to the States/Union Territories on intra-state transportation and Fair Price Shop dealers margin so that these costs do not get passed on to the beneficiary. These norms were first fixed in 2015.

The norms of central assistance were to be revisited after three years of commencement of the NFSA Act, 2013. Norms have been revised with the approval of Cabinet Committee on Economic Affairs.

For release of central assistance, States/UTs have been categorized under two categories: General Category States and Special Category States.

States from North Eastern region, hilly and islands come under Special Category States whereas rest of the States/UTs come under General Category States.

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