Thiruvananthapuram: A committee appointed by the state government has recommended the closure of nearly 4,000 ration shops to streamline distribution through the remaining outlets.

In its report, the committee has also proposed raising the price of rice for non-priority category beneficiaries from ₹4 per kg to ₹6 per kg, aiming to increase the commission for ration shop owners. The committee, tasked with studying various issues, including the revision of ration shop dealers' compensation, has suggested reducing the number of ration shops from the current 13,872 to 10,000.

The report's findings and recommendations are based on data collected in December 2023 and surrounding periods. Currently, the number of ration shops has risen to over 14,000.

The commission for ration dealers is directly linked to their sales turnover. To receive the minimum commission of ₹18,000, a shop must register at least 70 per cent of sales. If monthly sales fall below 45 quintals, the dealer will not qualify for this commission.

With the introduction of the portability system, which allows cardholders to buy rations from any shop in the state, the significance of card registration at specific shops has diminished. Against this backdrop, the report recommends adjusting the number of ration shops to ensure that each shop serves at least 800 cardholders per month.

The report also calculates the revised commission rates for dealers based on sales volume. It was prepared by a committee comprising the rationing controller, vigilance officer, and law officer in the Civil Supplies Department.

More shops in southern districts
The report highlights a higher concentration of ration shops in southern districts than in the north. It also recommends that when a ration dealer retires at 70, their shop should not be reassigned to another individual. Furthermore, it calls for a detailed review of the 88 shops that register monthly sales of less than 15 quintals to determine their viability.

The report also calls for merging extra shops operated under a single licensee into one unit to improve efficiency.