To be published in the Gazette of India, extra-ordinary Part-II, section
3(i), Ministry of Consumer Affairs Food and Public Distribution) New
Delhi, the 21 Aug 2001.
No. 630(E) whereas the Central Government is of the opinion that it
is necessary and expedient so to do for maintaining supplies and securing
availability and distribution of essential commodities under the Public
Now, therefore, in exercise of the powers conferred by section
3 of the Essential Commodities, Act, 1955 (10 of 1955) the Central Government
hereby makes the following Order, namely:-
Short title, extent and commencement:-
(1) This order may be called the Public Distribution System (Control)
(2) It extends to the whole of India.
It shall come into force on the d ate of its publication in the
(a)“Act” means the Essential Commodities Act, 1955 (10 of 1955).
(b)“Appellate Authority” means any authority appointed by the State
Government to exercise the powers of the appellate authority under this
(c) “authority” means any Officer not below the rank of Inspector in
the State Government dealing with Food and Civil Supplies,
(d)“ Above Poverty Line Families” means those families who have been
issued Above Poverty Line(APL)ration cards by the State Governments
for issue of foodgrains under the Public Distribution System,
(e)“Antyodaya families” means those poorest families from amongst Below
Poverty Line(BPL) families identified by the State Governments and entitled
to receive foodgrains under the Antyodaya Anna Yojana.
(f)“ authorized nominee” means the concerned Department of State Government
or a Corporation or a company owned by it or a co-operative.
(g)“Below Poverty Line families” means those families who have been
identified by the State Government for issue of foodgrains at specially
subsidized rates adopting the estimates of poverty given by the Central
(h)“eligible applicant” means an individual who is resident of a State
and fulfills the conditions for getting a ration card as may be prescribed
by the State Government.
(i)“essential commodities” means essential commodities as defined under
(j)fair price shop” means a shop, which has been licensed to distribute
essential commodities by an order issued under section 3 of the Act,
to the ration card holders under the Public Distribution System;
(k)“fair price shops owner” means a persons and includes a cooperative
society or a corporation or a company of a State Government or a Gram
Panchayat or any other body in whose name a shop has been licensed to
distribute essential commodities under the Public distribution System;
(l)”Public Distribution System” means the system for distribution of
essential commodities to the ration card holders through the fair price
shops., such as rice, wheat, sugar , edible oils, kerosene and such
other commodities as are notified by the Central Govt. under clause(a)
of section 2 of the Act;
(m) “ration card” means a document issued under an order or authority
of the State Government for the purchase of essential commodities under
the public distribution system from the fair price shop.
(n) “State includes a Union
(o)“State Government” includes Administration of a Union territory.
Identification of families living below the poverty line:
The State Governments shall identify families living Below Poverty Line
as per paragraph 1 of the Annexure to this Order.
The State Government shall issue distinctive ration cards to Above Poverty
Lin e, Below Poverty Line and Antyodaya Families and shall conduct periodical
review and checking of the ration cards as per paragraphs 2 of the Annex
to this Order.
Scale of issue and issue price:
The Central Government shall make available to the State Governments
foodgrains for distribution under the Public Distribution System at
such scales and price as provided in paragraph 3 of the Annex to this
(1)The procedure for distribution of foodgrains by the Food Corporation
of India to the State Governments or their nominated agencies shall
be as per paragraph 4 of the Annex to this Order.
(2) Fair Price shops owners shall take delivery of stocks from authorized
nominees of the State Governments to ensure that essential commodities
are available at the fair price shop within first week of the month
for which the allotment is made.
(3)The district authority entrusted with the responsibility of implementing
the Public Distribution System shall ensure that the stocks allocated
to the fair price shops are physically delivered to them by the authorized
nominee within the stipulated time.
The authority or person, who is engaged in the distribution and
handling of essential commodities under, the Public Distribution System,
shall not willfully indulge in substitution or adulteration or diversion
or theft of stocks from Central godowns to fair price shop premises
or at the premises of the fair price shop.
For the purpose of this clause:
“diversion” means unauthorized movement or delivery of essential
commodities released from central godowns but not reaching the intended
beneficiaries under the Public Distribution System.
“substitution” means replacement of essential commodities released
from central godown with the same articles of inferior quality for distribution
to the intended beneficiaries under the Public Distribution System.
The procedure for issue of licenses or authorization to the fair
price shops for the distribution of essential commodities under Public
Distribution System and duties and responsibilities of the fair price
shop owners shall be as per paragraph 5 of the Annex to this Order.
The ration card holder shall not be denied the supply as per
entitlement of he essential commodities, lying in stock, by the fair
price shop owner under the Public Distribution System.
The fair price shop owner shall not retain ration cards after
supply of the essential commodities.
A fair price shop owner shall provide the relevant extracts of
he records maintained by him to the beneficiary on payment of the prescribed
The procedure for monitoring of the Public Distribution System including
the functioning of the fair price shops by the State Government s shall
be as per paragraphs 6 of the Annex to this Order.
If any person contravenes any previsions of this order under clauses
3,4,6 and 7 he shall be liable to punishment under Section 7 of the
of search and seizure:
An authority authorized by State Government, shall be competent
to inspect or summon such records or documents as may be considered
by him necessary for examination and take extracts or copies of any
records or documents produced before him.
If the said authority has reason to believe that there has been
any contravention of the provisions of this Order or with a view to
securing compliance with this Order, he may enter, inspect or search
the fair price shop or any premises relevant to transactions of business
of the fair price shop.
The said authority may also search, seize or remove such books
of accounts or stocks of essential commodities where such authority
has reason to believe that these have been used or will be used in contravention
or the provisions of this order.
The provisions of section 100 of the Code of Criminal Procedure
1973, relating to search and seizure shall so far as may be, apply o
search and seizure under this Order.
All appeals shall lie before the Appellate Authority appointed
under paragraph 7 of the Annex to this Order.
Any person aggrieved by an order of the designated authority
denying the issue or renewal of a ration card or cancellation of the
ration card may appeal to the Appellate Authority within thirty days
of the date of receipt of the order.
Any person aggrieved by an order of the designated authority
denying the issue or renewal of the licence to the fair price shop owner,
or cancellation of the licence may appeal to the Appellate Authority
within thirty days of the date of receipt of the order.
No such appeal shall be disposed of unless the aggrieved person
has been given a reasonable opportunity of being heard.
Pending the disposal of an appeal, the Appellate Authority may
direct that the order under appeal shall not take effect until the appeal
is disposed of.
12. Protection of action taken under
No suit, prosecution or other legal proceeding shall lie against
any person for anything which is in good faith done or intended to be
done in pursuance of this Order.
13.Power of Central Government to give
The Central Government may give such directions as it may deem necessary
to State Government for execution of all or any of the provisions of
this Order and the State Government shall comply with such directions.
14.Provisions of the Order to prevail
over previous Orders of State Governments:
The provisions of this Order shall have effect notwithstanding anything
to the contrary contained in any Order made by a State Government or
b y an officer of such State Government before the commencement of this
Order except as respects anything done, or omitted to be done there
under before such commencement.
JOINT SECRETARY TO THE GOVERNMENT OF INDIA.
Annex to the Public Distribution System Control Order 2001
(See clauses 3,4,5,6,7,8,10&12)
Identification of families
living below the poverty line;
State Governments shall formulate suitable guidelines for the
purpose of identification of families living Below the Poverty Line
(BPL) , including the Antyodaya families ,as per the estimates adopted
by the Central Government. Care will be taken to ensure that the families
so identified are really the p eeriest. Take exercise of identification
of BPL and Antyodaya families, wherever it has not been done already,
shall be completed within three months of the issue of this order.
State Government shall get the lists of BPL and Antyodaya families
reviewed every year for the purpose of deletion of ineligible families
and inclusion of eligible families.
While undertaking the exercise of identificat5ion or review of
BPL and Antouyodaya families, each State Government shall prescribe
a suitable3 Proforma to be filled up by or on behalf of the head of
The data provided in the prescribed Proforma shall be verified
by the authority designated by the State Government for the purpose.
The said authority shall also certify the correctness of the information
contained in the Proforma.
Gram Sabha shall finalize the list of beneficiaries belonging
to BPL and Antyodaya categories drawn up by the designated authority
in respect of the area under their respective jurisdiction.
Where there are no Gram Sabha, the local representative bodies
shall finalise the list of beneficiaries belonging to BPL and Antyodaya
categories within their respective jurisdiction.
The designated authority of the State Government or the local
representative bodies including Gram Sabhas and Gram Panchayats which
have been entrusted with the task of identification of beneficiaries,
shall verify and certify the information in the prescribed Proforma
for BPL and Antyodaya families.
State Governments shall ensure that no eligible applicant is
denied a ration card under the Public Distribution System.
The ration card holder shall be entitled to draw essential commodities
from a fair price shop on weekly basis.
State Government shall issue distinctive ration cards to APL,BPL
and Antyodaya families.
The designated authority shall issue a ration card within one
month of the date of receipt of the application after necessary checks
(5) State Governments shall specify
a timeframe for making additions or alterations in the ration card.
In case this time limit is not adhered to, the reasons therefore shall
be intimated to the applicant in writing.
(6) State Governments shall conduct periodical checking of ration cards
to weed out ineligible and bogus ration cards and bogus units in ration
(7) A ration card shall be valid for a specified period. A ration card
shall be issued afresh or renewed after or renewed after fresh verification
of antecedents and such other checks as may be prescribed by the State
Government in this regard.
(8) Elimination of bogus ration cards as well as bogus units in the
ration cards shall be a continuous exercise by the State Government
to check diversion of essential commodities.
(9) Ration cards shall not be used as documents of identity.
Scale of issue and issue price:
(1) The Central Government
shall make available to the State Governments foodgrains for distribution
under the public distribution System to various categories of beneficiaries
at such scales and prices, as may be specified from time to time.
The State Governments shall not divert the allocations made by
the Central Government for distribution under the Public Distribution
The Food Corporation of India(FCI)
or any other agency designated for the purpose by the Central Government
shall ensure physical delivery of foodgrains of fair average quality
to State Government for distribution under the Public Distribution System
as per the allocation made by he Central Government, within two weeks
of the receipt of payment from the State Governments and is issue of
State Governments shall, on getting allocation of foodgrains
from the Central Government, issue distribution-wise allocation orders
authorizing their agencies or nominees to draw foodgrains from the FCI
within ten days of the receipt of allocation orders made by the Government
(3) The designated authority
of the State Governments shall ensure delivery of one copy of allocation
order made to the fair price shop simultaneously to Gram Panchayats
or Nagar Palikas or Vigilance Committees or any other body nominated
for monitoring the functioning of the fair price shops by the concerned
Gram Panchayats or Nagar Palikas or Vigilance Committees or any
other body nominated for monitoring the functioning of the fair price
shop by State Governments shall display the stocks of essential commodities
allotted during the month to the fair price shops on a notice board
outside their office.
While making monthly allocations to the fair price shops the
designated authority of State Governments shall take into account the
balance stock, if any, lying un-distributed with the fair price shop
owners for the subsequent allocations.
State Government shall make arrangements for taking delivery
of essential commodities issued by the Central Government by their designated
agencies or nominees from the FCI depots/godowns and ensure further
delivery to the fair price shop within the first week of the month for
which allocation is made.
Before making the payment to the FCI the representatives of State
Governments or their nominees and the FCI shall conduct joint inspection
of the stocks of foodgrains intended for issue to ensure that the stocks
conform to the prescribed quality specification.
The FCI shall issue to the State Governments stack-wise sealed
samples of the stocks of foodgrains supplied to them for distribution
under the Public Distribution System at the time of dispatch.
State Governments shall exercise necessary checks to ensure that
full quantity lifted by them reaches their godowns and in turn the fair
(10) State Governments shall
ensure that stocks of essential commodities under the Public Distribution
System, as issued from the FCI godowns, are not replaced by stocks of
inferior quality during storage, transit or any other stage till delivery
to the ration card holder.
State Governments shall issue an order under section 3 of the Act for
regulating the sale and distribution of the essential commodities. The
licenses to the fair price shop owner shall be issued under the said
order and shall lay down the duties and responsibilities of the fair
price owner. The responsibilities and duties of fair price shops owners
shall include, inter alia.
sale of essential commodities
as per the entitlement of ration card holders at the retail issue price
fixed by the concerned State Government under Public Distribution System.
of information on a notice at a prominent places in the shop on daily
basis regarding(a) list of BPL and Antyodaya beneficiaries, (b) entitlement
of essential commodities ,(c) scale of issue,(d) retail issue prices,
(e) timings of opening and closing of the f air price shop, (f) stock
of essential commodities received during the month, (g) opening and
closing stock of essential commodities and (h) the authority for redressal
of grievances/lodging complaints with respect to quality and quantity
of essential commodities under the Public Distribution System.
Maintenance of records
of ration card holders(APL,BPL and Antyodaya),stock register, issue
or sale register.Furnishing
of copies of specified documents, namely, ration card register, stock
register, sale register to the office of the Gram
Panchayat or Nagar
Palika or Vigilance committee or any other body authorized by State
Governments for the purpose.
Display of samples of
foodgrains being supplies through the fair price shop;
of books and records relating to the allotment and distribution of essential
commodities to the inspecting agency and furnishing of such information
as may be called for by the designated authority;
Accountal of the actual
distribution of essential commodities and the balance stock at the end
of the month to the designated authority of the concerned State Government
with a copy to the Gram Panchayat;
and closing of the f air price shop as per the prescribed timings displayed
on the notice board.
State Government shall ensure a proper system of monitoring of
fair price shops and prescribe model sale register ,
stock register and ration card register.
State Governments shall ensure regular inspections of fair
price shops not less then once in six months by the designated authority.
State Governments may issue orders specifying the inspection schedule,
list of check points and the authority responsible for ensuring compliance
with the said orders.
Meetings of the Vigilance Committees on the Public Distribution
System at the State, District, Block and FPS level shall be held on
a regular basis. The date and periodicity shall be notified by State
Governments. However, the periodicity shall not be less than one meeting
a quarter at all levels.
State Governments shall ensure a periodic system of reporting
and the in this regard shall be sent in the prescribed form.
fair price shops to the District Authorities by the 7th of
the month following the month for which allocation is made in Form’A’.
By the District Authorities
to State Government by the 15th of the month following the
month for which allocation is made in Form’B’.
By the State Government
to the Central Government by the end of the month following the month
for which allocation is made in Form’C’.
(5) Future allocation of foodgrains to States shall be linked
to the receipt of regular reports from the respective State and furnishing
of utilization certificates by them within a period of two months from
the month for which allocation is made.
(6) State Governments shall ensure monitoring of the functioning
of the Public Distribution System at the
fair price shop level through the computer network of the NIC
installed in the District NIC centers. For this purpose computerized
codes shall be issued to each FPS in the district.
(7) State Governments shall educate the ration card holders regarding
their rights and privileges under the Public Distribution System by
use of electronic and print media as well as display boards outside
fair price shops.
(8) State Governments
shall issue and adopt and Citizen’s Charter based on the model Citizens
charter issued by the Central Government.
(9) The designated authority
shall direct the concerned fair price shop owner to provide relevant
extracts of the documents maintained by him on an application made by
a beneficiary, on payment of a prescribed fee.
7. Appellate Authority:
The State Government shall appoint the Appellate Authority for the purposes
of this Order.