Daijiworld Media Network – Panaji

Panaji, Jul 3: Even as the Centre pushes for reforms to boost the earnings of Fair Price Shop (FPS) dealers nationwide, the Goa Finance Department has raised objections to a state-level ‘Compensation to FPS Dealers’ scheme, warning of its potential impact on the state’s financial health.

The proposed scheme, aimed at providing relief to the state’s 450 FPS operators, suggests monthly operating expenses of Rs 9,500 per shop, waiver of ePoS machine rent at 10 paisa per kg, and an added ePoS incentive of Rs 105 per ton. It also recommends raising the fortified rice allocation price for APL households from Rs 12.50 to Rs 16.50, and increasing the dealer margin from Rs 2.80 to Rs 3.15 per kg.

While the department of Civil Supplies and Consumer Affairs received Administrative Approval for the scheme in December 2024, the finance department has now declined the proposal, terming it fiscally non-viable. “The department has suggested either redrafting or scrapping the scheme altogether,” sources confirmed.

The Civil Supplies Department had hoped the scheme would help prevent a looming crisis, as several FPS dealers, burdened by operating costs, have expressed intent to shut down their distribution services. The proposed financial support was aimed at covering essentials like wages, rent, electricity, transportation, and handling charges.

However, the Finance Department estimates the scheme would place an additional annual burden of over Rs 10 cr on the state exchequer a cost it considers unsustainable under current fiscal conditions.

With hundreds of FPS dealers seeking relief or threatening closure, the government now faces a difficult balancing act between sustaining the public distribution system and maintaining fiscal discipline.