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Why Ration Shops are Necessary?

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Ration shops, also known as Public Distribution System (PDS), are government-run stores that provide food and other essential commodities at subsidized prices to people belonging to economically weaker sections of society. 

They are also known as fair price shops and public distribution shops, and primarily sell wheat, rice, and sugar at a subsidized rate, lower than market price. To buy the items, one must have a ration card and the shops are operated in the country with the joint assistance of central and state governments.

Necessity of Ration Shops

Ration Shops

Ration Shops as Necessity

  • The Ration Shops sell the basic needs items like food grains, sugar, and kerosene oil at a subsidized rate, a rate which is lower than the market and market price.
  • The Ration Shops provide food stocks to the poor section of society based on the issue price and the issue price is a cost which is chosen by the government, on the rate at which the ration shops will offer the goods to poor ones.
  • The ration shops help to decrease the level of malnutrition in the country. It helps to provide food and nutrition to the poor section of society. 
  • India as a country faces the problem of food insecurity a lot. Food insecurity occurs due to various reasons, both human and man-made. Ration shops help to bring a form of equilibrium to the economy, by building a stock of necessary food items and distributing it among the poorer section of people.

Malnutrition and Ration Shops

Malnutrition has been a part of Indian history and the economy for a very long time. Due to the high prices of essential commodities and the low income of most of the people in the country, people couldn’t afford the basic essentials and as a result, suffered from malnutrition. 

The coming of ration shops and the further expansion of the ration shops has helped in the growth and development and in a way reduced the effects of malnutrition in the country. Due to the low prices charged in ration shops, people are being able to afford the food commodities and lead a better lifestyle.

Food Insecurity and Ration Shops

One of the biggest initiatives by the government to combat food insecurity is the development and expansion of ration shops. The Public Distribution System (PDS) has helped to provide better nutrition security and nourishment to the undernourished population and children in the country. The PDS system provides both food and non-food items to the identified households having ration cards, a subsidized prices.

Ration shops act as a catalyst for the better management and development of the economy through the process of food distribution and food availability, at subsidized rates.

FAQs on Ration Shops

Ques 1. What are the problems with the functioning of ration shops?


Some important problems of the functioning of ration shops include engaging in malpractices by dealers for more profit, poor quality of food items, and irregular timings are some of them.

Ques 2. How do ration shops under PDS help people?


Ration shops under PDS help people. Food Corporation of India buys food items from the government at a fixed price and then sold in ration shops at low prices.

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Last Updated : 09 Mar, 2023
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