Question

4. Why is a ration shop called a Fair Price Shop? Why does the government have a system of

different ration cards?

Answer 1

The food procured by the Food Corporation of India is distributed through government-regulated ration shops. The prices at which food materials are sold at these ration shops are lower than the market prices. The low pricing is to benefit the poorer strata of society. This is why these shops are called fair-price shops.

Fair-price shops keep stock of food grains, sugar and kerosene oil. The government issues ration cards so tha the benefciaries are able to obtain a minimum quantity of food grains and other materials from these shops at the stioulated prices. Any family with a ration card can buy a stipulated amount of these items every month from the nearby ration shop.