For Prelims: Public Distribution System (PDS), Fair Price Shop (FPS), National Food Security Act (NFSA), 2013, Direct Benefit Transfer (DBT), Amount Paid, Previous Margin per Quintal, New Margin per Quintal, State Additional Margin per Quintal
For Mains: Public Distribution System, Fair price shop viability, Direct Benefit Transfer, Food security, State welfare measures
Source:
Hindustan
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- Uttar Pradesh paid ₹20.90 crore as additional margin to fair price shop dealers.
- The margin per quintal of grain was increased from ₹100 to ₹125.
- The state government contributed an extra ₹25 per quintal as additional margin.
- Payments were made directly to the bank accounts of 10,779 verified dealers.
- The announcement was made by Uttar Pradesh Food and Logistics Minister Manoj Kumar Pandey.
Why in the news?
The margin per quintal of grain has been increased from ₹100 to ₹125, with the state contributing the extra ₹25 per quintal directly to dealers' bank accounts ahead of Diwali.
Summary
- Uttar Pradesh paid ₹20.90 crore as an additional state margin to fair price shop dealers under the PDS.
- The margin per quintal of grain distributed has been increased from ₹100 to ₹125, with the state contributing the extra ₹25 per quintal.
- Payments were made directly to the bank accounts of 10,779 verified dealers ahead of Diwali.
Highlights
Additional Margin for Fair Price Shop Dealers
Uttar Pradesh paid ₹20.90 crore as an additional state margin to PDS dealers, with the per-quintal margin increased from ₹100 to ₹125.
Direct Benefit Transfer to Dealers
The amount was transferred directly to the bank accounts of 10,779 verified fair price shop dealers across the state.
Diwali-Time Welfare Measure
The payment was made ahead of Diwali by the state's Food and Logistics Minister, providing financial support to dealers before the festival.
Background
Fair price shop dealers are the last-mile distributors of subsidised food grains under the National Food Security Act (NFSA) and the state's Public Distribution System (PDS). They receive a margin, or commission, per quintal of grain distributed to cover their operational costs. The central government provides a basic margin, and states can supplement it with an additional state margin. Uttar Pradesh has been providing ₹100 per quintal as margin, and from July 2026, it introduced an additional state margin of ₹25 per quintal, raising the total to ₹125.
Way Forward
With only 15 bills left to verify, the state is close to completing the disbursement for all eligible dealers. The additional state margin is likely to continue as a regular feature, potentially improving the efficiency of the PDS in Uttar Pradesh. Other states may also consider increasing margins for fair price shop dealers to strengthen the food security network.
Uttar Pradesh connection
Matters for these Uttar Pradesh exams:UPPSC 8/10
Background GK
Textbook concepts you need to understand this news
- Public Distribution System (PDS)
- A government-sponsored program that distributes subsidised food and non-food items to India's poor through a network of fair price shops. It is operated under the Ministry of Consumer Affairs, Food and Public Distribution.
- Fair Price Shop (FPS)
- Retail outlets that distribute essential commodities like wheat, rice, sugar, and kerosene at subsidised prices to ration card holders under the PDS. They are also known as ration shops.
- National Food Security Act (NFSA), 2013
- A landmark Act that provides a legal right to subsidised food grains to up to 75% of the rural population and 50% of the urban population. It entitles eligible households to 5 kg of food grains per person per month at highly subsidised rates.
- Direct Benefit Transfer (DBT)
- A government initiative to transfer subsidies and benefits directly into the bank accounts of beneficiaries, eliminating intermediaries and reducing leakage.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: ₹20.90 crore paid as additional state margin; margin increased from ₹100 to ₹125 per quintal; state's additional contribution ₹25 per quintal.
- Nodal Body: Ministry of Food and Logistics, Government of Uttar Pradesh.
- Legal Point: National Food Security Act (NFSA), 2013.
Don't make this mistake!
The examiner may confuse the 'additional state margin' (₹25 per quintal paid by the state) with the 'total margin' (₹125 per quintal including the central margin). They may also swap the state (Uttar Pradesh) with another state or claim the amount was paid to beneficiaries instead of dealers.
Write these in mains answers
- Public Distribution System, Fair price shop viability, Direct Benefit Transfer, Food security, State welfare measures
Stuck? Get it in one tap
Fair price shop dealers are the people who run ration shops under the Public Distribution System. They get a commission, called a margin, for every quintal of grain they distribute. The Uttar Pradesh government increased this margin from ₹100 to ₹125 per quintal and paid the extra amount directly into their bank accounts. This helps dealers earn more and keeps the ration system running smoothly.
- Uttar Pradesh paid ₹20.90 crore as additional margin to fair price shop dealers.
- The margin per quintal of grain was increased from ₹100 to ₹125.
- The state government contributed an extra ₹25 per quintal as additional margin.
- Payments were made directly to the bank accounts of 10,779 verified dealers.
- The announcement was made by Uttar Pradesh Food and Logistics Minister Manoj Kumar Pandey.
- Governance: Public Distribution System and Food Security
- State_Governance: Uttar Pradesh government schemes and policies
Related concepts: Public Distribution System (PDS), Fair Price Shop (FPS), National Food Security Act (NFSA), 2013, Direct Benefit Transfer (DBT)
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which ministry in the Uttar Pradesh government is responsible for the Public Distribution System and fair price shop dealers?
Explanation: The payment was made by the state's Food and Logistics Minister, Manoj Kumar Pandey. This ministry oversees the Public Distribution System and fair price shop operations in Uttar Pradesh. The other options are not directly responsible for PDS operations at the state level.
- Q2Hard
Consider the following statements regarding the additional margin paid to fair price shop dealers in Uttar Pradesh:
- 1.The margin per quintal of grain was increased from ₹100 to ₹125.
- 2.The entire ₹25 per quintal increase was funded by the central government.
- 3.The payment was made directly to the bank accounts of dealers.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct: the margin was increased from ₹100 to ₹125 per quintal. Statement 2 is incorrect: the ₹25 per quintal increase is a state additional margin, funded by the Uttar Pradesh government, not the central government. Statement 3 is correct: the amount was transferred directly to the dealers' bank accounts. Hence option C is correct.
- Q3Easy
What is the total amount paid by the Uttar Pradesh government as an additional margin to fair price shop dealers?
Explanation: ₹20.90 crore was paid as an additional state margin.
- Q4Medium
What is the primary objective of the Uttar Pradesh government's decision to increase the margin for fair price shop dealers?
Explanation: Increasing the margin per quintal directly improves the income of fair price shop dealers, making their operations more sustainable and incentivising them to participate effectively in the PDS. Reducing consumer prices or increasing shop numbers are not the direct objectives of a margin increase. The subsidy is still for beneficiaries, not transferred entirely to dealers.
Frequently asked questions
1. How much additional margin did Uttar Pradesh pay to fair price shop dealers?
Uttar Pradesh paid ₹20.90 crore as an additional state margin to fair price shop dealers.
2. What is the new margin per quintal for fair price shop dealers in Uttar Pradesh?
The margin per quintal of grain has been increased from ₹100 to ₹125, with the state contributing an extra ₹25 per quintal.
3. Who is the Food and Logistics Minister of Uttar Pradesh who announced this payment?
The Food and Logistics Minister of Uttar Pradesh is Manoj Kumar Pandey.
4. When was the payment of the additional margin made?
The payment was made on 6 November 2026, ahead of the Diwali festival.
All sources
- Original6 November 2026 · Read story
