K'taka FPS demands Rs 179 cr margin amt for selling under NFSA

Karnataka Fair Price Shop Dealers Association today demanded the Centre to clear at the earliest Rs 179 crore margin amount of last two years payable to 22,000 ration shops in the state for selling foodgrains under the National Food Security Act (NFSA).
The Centre had last year hiked the margin money to be paid to fair price shops (FPSs) to Rs 70 per quintal in those states/UTs which are implementing NFSA. Both centre and state were to share the burden equally. Prior to NFSA, Rs 36 per quintal was given as margin to FPSs in Karnataka.
"In last two years, 51.18 lakh tonnes of foodgrains has been allotted to the state under NFSA. At a margin amount of Rs 70 per quintal, the FPSs margin/commission comes out to be Rs 358.28 crore and the central share is Rs 179.14 crore," Karnataka Fair Price Shop Dealers Association President T Krishnappa told PTI.

The state has put in place all infrastructure as per the norms specifed under NFSA. "Still, we have not got the higher margin amount fixed by the Centre. The delay is hurting ration shop dealers," he said.
The state government is awaiting permission from the centre to release the margin amount to dealers in the state.
The association also made representation to Food Minister Ram Vilas Paswan on this issue.

"All documents required to get the margin amount have been submitted to the state, but state officers are not clearing payments in the absence of clear cut direction from the Food Ministry," he added.

There are 22,000 fair price shops, also called ration shops in the state. Their financial viability would be affected if there is further delay in payment of margin amount or commission, the association said.
About 2.17 lakh tonnes of foodgrain is allocated under NFSA to Karnataka.
It may be noted that the state government has for last two years supplied foodgrains via ration shops at Rs 1/kg. It also supplied extra 5 kg per person up to a limit of 3 beneficiaries over and above the NFSA entitlement.
However this year, the extra grain allocation has been scrapped and is supplying only 5 kg per person as specified under NSFA but for free.