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Polity & Governance GS 2 In the news 4 times

Intra-State Movement of Foodgrains and FPS Dealer Margins

A standalone central assistance scheme has long provided financial support to states for the cost of transporting foodgrains from the point of central allocation (typically the nearest FCI depot or rail head) to the FPS, including handling and storage costs. This "intra-state movement" assistance recognises that the central procurement and interstate logistics are FCI's responsibility, while last-mile logistics within the state are a shared Centre-State cost. FPS dealer margins — the per-quintal commission paid to FPS licensees — directly determine whether FPS operations are financially viable. Low margins have historically led to adulteration, diversion, or shop closures. SARTHAK-PDS merges this scheme with SMART-PDS into a single umbrella, ensuring both the physical logistics support and the technology reform are co-funded under one framework.

Key details
  • FCI handles central procurement, interstate transport, and storage under its statutory mandate (FCI Act, 1964).
  • State government agencies (State Civil Supplies Corporations) manage intra-state distribution.
  • Enhanced FPS dealer margins under SARTHAK-PDS are a structural reform to make last-mile delivery financially sustainable.
In the news

Tracked since May 27, 2026 · last seen May 27, 2026 · updates as the daily brief publishes

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