First Fair Price Shops Included on the Open Network Digital Commerce

Utkarsh Classes Last Updated 07-02-2024

First Fair Price Shops Included on the Open Network Digital Commerce

Place in News 3 min read

As a part of Digital India initiative, the Government of India has launched a pilot programme to onboard the Fair Price Shops (FPSs) in Una and Hamirpur districts of Himachal Pradesh onto the Open Network Digital Commerce (ONDC).

Fair Price Shops (FPSs) in Una and Hamirpur

The pilot project was launched in 11 FPSs, with 5 FPSs located in Una district and 6 FPSs in Hamirpur district.
This marks the first time that Fair Price Shops have been integrated into the ONDC platform.
The initiative aims to provide more opportunities for FPS dealers to increase their income while also improving beneficiary satisfaction.
This program offers several advantages to FPS dealers, including increased exposure in the digital marketplace, access to a larger customer base beyond NFSA beneficiaries, and the ability to compete on an equal footing with larger retailers and e-commerce platforms.
Additionally, beneficiaries who have difficulty making online purchases can approach an FPS dealer to place online orders on their behalf.
The successful implementation of this pilot project in Himachal Pradesh will serve as a model for future statewide and nationwide adoption.
The support of MicroSave Consulting (MSC) in deploying this pilot program was crucial.
After the launch event, a workshop was held in-person for FPS dealers in Una and Hamirpur districts.
The workshop provided guidance on how to catalogue products, process orders and commission structures on ONDC, among other things.

Meaning of Fair Price Shop

A Fair Price Shop is a licensed shop that distributes essential commodities to ration card holders under the Targeted Public Distribution System.
This license is issued under section 3 of the Essential Commodities Act, 1955. The definition of this term can be found in Section 2(4) of the National Food Security Act, 2013.
It is the responsibility of every State Government to establish institutionalized licensing arrangements for Fair Price Shops in accordance with the relevant provisions of the Public Distribution System (Control) Order, 2001, which is made under the Essential Commodities Act, 1955.
This is done for the efficient operation of the Targeted Public Distribution System.