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Cooperative Fair Price Shops
Tamil Nadu has successfully implemented the Universal Public Distribution System, making it one of the leading states in India in ensuring food security for its citizens. To facilitate the efficient distribution of essential commodities to ration cardholders across the state, Cooperative Societies operate a total of 35,039 Fair Price Shops (FPS), categorized as follows:
● Full-Time Fair Price Shops: 24,684
● Part-Time Fair Price Shops: 10,355
Essential commodities such as rice, sugar, and wheat, along with special PDS commodities like Tur Dal and Palmolein oil, are procured from Tamil Nadu Civil Supplies Corporation (TNCSC) and distributed through these FPS. The Cooperatives have built an extensive distribution network in the State and run majority of the Fair Price Shops i.e. 35,039 as on 31.03.2025 as detailed below:
Fair Price Shops Network (as on 31.03.2025)
| Sl.No. | Type of Cooperative Society | No. of fair price shops (31.3.2025) |
|---|---|---|
| 1. | District Consumer Cooperative Wholesale Stores | 3,617 |
| 2. | Cooperative Marketing Society | 2,703 |
| 3. | Primary Cooperative Stores | 1,925 |
| 4. | Primary Agricultural Cooperative Credit Society | 25,410 |
| 5. | Urban Cooperative Credit Society | 1,056 |
| 6. | Large Area Multi-Purpose Cooperative Society | 263 |
| 7. | Others | 65 |
| Total | 35,039 |
Role of Cooperative Fair Price Shops
35,039 Fair Price Shops managed by cooperative societies cater to 2.12 crore ration cardholders across the state. In addition to distributing essential commodities, these shops sell special PDS items at government-subsidized rates. Furthermore, Non-Controlled goods such as Ooty Tea, Arasu Salt, Palm Jaggery, Minor Millets, and 5kg/2kg Free Trade LPG (FTL) cylinders are also available for purchase. Additionally, 240 kerosene bunks supply kerosene to eligible families.
SCALE OF SUPPLY
| Sl.No. | Commodities | Scale of Supply | Remarks |
|---|---|---|---|
| 1 | Rice |
One person -12Kg 2 person-16 Kg 3 persons-20 Kg 4 persons-20 kg subject to a ceiling of 20 Kg for NPHH cards. For PHH Cards additional 5Kg per Unit for each additional Unit AAY cards - 35Kg |
Free of cost from 01.06.2011 G.O. (Rt)No.45 Cooperation, Food and Consumer Protection (D1)Department Dated:17.05.2011 |
| 2 | Wheat | Rural areas 5 Kg out of the eligible grains. Urban areas 10 Kg out of the eligible grains | Free of cost from 02.02.2017 G.O. (Rt)No.16 Cooperation, Food and Consumer Protection (D1)Department Dated:02.02.2017 |
| 3 | Sugar | 0.5 Kg per Unit subject to a maximum of 2 Kg per card For NPHH-S card maximum of 5 Kg is issued. |
Rs.25.00 From 01.11.2017 AAY- Rs:13.50 |
| 4 | Kerosene | Scale of supply ranges from 3 to 15 Ltrs based on the place and No.of LPG cylinders. 2 cylinders – No supply 1 cylinder – 3 litre No cylinder – 15 litre for Urban areas – 10 litre for Rural areas |
Ranging from Rs.15.00 to Rs.16.50 w.e.f.04.09.2020 as fixed by collector |
| 5 | TurDhall | 1Kg per card | Rs.30/-(From 01.02.2011) |
| 6 | Palmolein | 1L per card | Rs.25/- (From 01.02.2011) |
| 7 | OAP | 4Kg Rice per card | Free of Cost |
| 8 | ANP | 10Kg Rice per card | Free of Cost |
| 9 | AAY | 35Kg Rice per card | Free of Cost |
Mobile Fair Price Shops
To ensure accessibility of essential commodities to people residing in remote areas, hilly terrains, and regions obstructed by rivers, highways, or other natural barriers, 2,494 Mobile FPS operate across Tamil Nadu. These mobile units primarily serve tribal communities and other individuals who face challenges in accessing conventional FPS outlets.
Diversification of Product Sales in FPS
To improve the financial sustainability of FPS, additional revenue sources include:
Distribution of 5kg/2kg FTL Cylinders:
The retail sale of 5kg and 2kg Free Trade LPG (FTL) cylinders has been introduced in FPS, benefiting migrant workers, street vendors, and pushcart traders who require small-sized LPG refills. Notably, the purchase of these cylinders does not require address proof.
| Year | Sales Amount (in Lakhs) |
|---|---|
| 2022-23 | 10.02 |
| 2023-24 | 40.63 |
| 2024-25 | 62.68 |
Sale of Minor Millets:
As per the 2021-22 Agriculture Budget, small millets such as Ragi, Kambu, Thinai, Kuthiraivali, Saamai, and Varagu are sourced through Farmer Producer Organizations (FPOs). These grains are sold at selected FPS and cooperative retail outlets. Between June 2022 and March 2025, sales of minor millets amounted to Rs.2.58 crore.
| Year | Sales Amount (in Lakhs) |
|---|---|
| 2022-23 | 30.33 |
| 2023-24 | 88.92 |
| 2024-25 | 138.75 |
Palm Jaggery Sales:
Following the 2021-22 Agriculture Budget, FPS have been selling Palm Jaggery. From October 2021 to March 2025, sales amounted to Rs.1.93 crore.
| Year | Sales Amount (in Lakhs) |
|---|---|
| 2021-22 | 37.81 |
| 2022-23 | 72.27 |
| 2023-24 | 52.07 |
| 2024-25 | 30.85 |
Arasu Salt Sales:
To combat iodine deficiency disorders, iodized salt procured from Tamil Nadu Salt Corporation is supplied through FPS.
| Year | Quantity Sold (in M.T) |
|---|---|
| 2021-22 | 15,474 |
| 2022-23 | 21,260 |
| 2023-24 | 19,195 |
| 2024-25 | 21,403 |
Ooty Tea Sales:
The Tamil Nadu Small Tea Growers' Cooperative Federation (INDCOSERVE) supports small-scale tea growers by procuring their produce and selling it under the "Ooty Tea" brand through FPS.
| Year | Quantity Sold (in M.T) |
|---|---|
| 2021-22 | 2,046 |
| 2022-23 | 2,422 |
| 2023-24 | 2,441 |
| 2024-25 | 2,645 |
Modernization of Cooperative Fair Price Shops
ISO Certification:
To enhance service quality and supply chain security, steps have been taken to obtain ISO 9001 (Quality Management System) and ISO 28000 (Supply Chain Security) certifications for FPS. As of March 2025, a total of 10,149 FPS has received ISO 9001 certification, while 2,059 FPS have been certified under ISO 28000.
FPS Infrastructure Enhancement:
Renovation efforts are underway across Tamil Nadu, with 5,481 FPS already modernized to improve their structure and operational efficiency.
Establishment of New Fair Price Shops:
To expand the accessibility of FPS, 2,394 new FPS have been established between May 2021 and March 2025, including 789 full-time and 1,605 part-time shops.
Employment in Fair Price Shops:
During 2022-2023, 5,748 Salesmen and 981 Packers were recruited to ensure uninterrupted distribution of essential commodities. Additionally, recruitment is ongoing for 2,527 Salesmen and 826 Packers for the year 2024-2025.
Construction of New Fair Price Shops buildings functioning in rental premises:
The status of 35,039 Fair Price Shops run by the Cooperative Societies as on 31.03.2025 is given below:
| Sl.No | Details | No. of Fair Price Shops |
|---|---|---|
| 1 | Own Building | 3,441 |
| 2 | Government Building | 19,474 |
| 3 | Rent Free Building | 5,909 |
| 4 | Rented Building | 6,215 |
| Total | 35,039 |
A phased plan is underway to construct new Fair Price Shops buildings currently operating in rented premises. From 2021-22, Land has been identified for 2,571 shops, and Administrative sanctions have been given for 1,749 shops. So far, 1,040 FPS have been fully constructed, and construction is ongoing at 709 locations.
Standardized Fair Price Shops Design:
The government has approved two standard building designs for FPS building construction.
- 440 sq. ft. structures for shops serving fewer than 500 ration cards, estimated at ₹7 lakh per unit.
- 550 sq. ft. structures for shops serving more than 500 ration cards, estimated at ₹10 lakh per unit.
Technological Advancements in Public Distribution System
- E-Auction for Empty Jute Bags: To ensure transparency, empty jute gunny bags are auctioned via MSTC (Metal Scrap Trade Corporation Ltd.) and National Cooperative Dairy Federation of India (NCDFI).
- PoS Device Transactions: All FPS sales are digitally recorded with SMS notifications sent to registered mobile numbers. PDS commodities are issued only upon biometric verification to prevent misuse.
- Electronic Weighing Scales: To guarantee accurate measurement of goods.
- UPI Payments: UPI enabled payment method is being done in FPS.
Social Welfare Initiatives
Pongal Gift Hampers 2025:
On the occasion of Pongal 2025, Pongal Gift Hamper consisting of 1kg Raw rice, 1kg Sugar, 1 full length Sugarcane were distributed to 1.94 crore cardholders through Fair Price Shops.
Public Distribution System (PDS) Subsidy:
To cover operational losses, the government has allocated Rs.2,195.99 crore as PDS subsidy over the past four financial years.
| Year | Sanctioned Amount (in Lakhs) |
|---|---|
| 2021-22 | 60,080.59 |
| 2022-23 | 49,518.00 |
| 2023-24 | 50,000.00 |
| 2024-25 | 60,000.00 |
Achieving Sustainable Development Goals (SDGs) through Public Distribution System
The Universal Public Distribution System in Tamil Nadu significantly contributes to the United Nations Sustainable Development Goals (SDGs), particularly:
- Goal 1: No Poverty
- Goal 2: Zero Hunger
- Goal 3: Good Health and Well-being
This policy continues to serve as a cornerstone for food security and social welfare across the state.