Fair Price Shops struggle to stay afloat amid financial losses, logistics woes and cancelled ration cards

Around 70 Fair Price Shops have closed in recent years and over 400 shops are in dire financial straits

MARGAO: As concerns about the quality of food grains distributed at fair price shops continue to prevail, it has come to light that running these shops has become increasingly challenging for hundreds of shop owners. One of the primary reasons is the financial losses they incur, with no support forthcoming from the government. 

Shockingly, nearly 70 fair price shops have closed in recent years, and many more are on the verge of closing. Currently, about 452 shops are awaiting government assistance, as approx-imately 95% of these shops are in dire financial straits.

Discussions with several fair price shop owners, including the All-Goa Consumer Co-operative Society and Fair Price Shop Owners Association, have revealed that the cancellation of ration cards has had a significant impact on the smooth functioning of these shops. Other contributing factors include losses incurred during the transportation and handling of food grains, shop maintenance, and salaries for staff working in these shops.

Additionally, the concerned officials have failed to maintain records regarding the number of ration cards registered at each fair price shop and the distribution of food grains. Gandhi Henriques, the General Secretary of the All-Goa Consumer Co-operative Society and Fair Price Shop Owners Association, explained that the government had set up a committee to find solutions, but the officials had not provided the necessary data for the committee’s last meeting.

Henriques pointed out that 95% of fair price shops are currently in a precarious financial position, with some of the reasons for this situation being the suspension of ration cards for individuals earning over Rs five lakh annually, and cards not used for three months. The fixed commission margins for fair price shops were established 15 years ago, and they do not cover costs such as rent, house tax, municipal tax, trade license fees, annual weight and measures depth fees, and staff salaries.

Fair price shop owners lament that they have received no government assistance and are even required to distribute rice for free under the Central government scheme, without receiving any commissions for several months.

Aleixo Reginaldo Lourenco, an MLA under whose trust five fair price shops operate in the Curtorim constituency, echoed the concerns of fair price shop owners. He empha-sised the need for the government to find a solution promptly to support shop owners suffering from losses, as running these shops has become financially unviable.

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