New look to PDS changes lives of shopkeepers

Om Prakash Chaudhry, a physically challenged man from Jaipur rural, has a reason to smile. Despite afflicted by polio, he is now fully occupied at his shop. His low-profile fair price shop (FPS) has received a colourful facelift and has been converted into an “Annapurna Bhandaar”. Like Om Prakash's shop, 5,050 FPSs have been rebranded as Annapurna Bhandaars, new supermarkets in villages in Rajasthan.

Seen as a pioneering initiative in the public distribution system (PDS) to provide quality products in remote areas at cheaper prices, Om Prakash has a monthly turnover of Rs 1.5 lakh and his earnings have more than tripled from Rs 3,000 to Rs 10,000.

An agreement signed between Rajasthan State Food and Civil Supplies Corporation and Future Consumer Enterprise Ltd has made this possible.

“With this agreement, a new era of PPP (private-public participation) model has started in the history of India’s PDS.  Annapurna Bhandaar Yojna would strengthen government's effort in bringing about a positive change and bettering the daily lives of the people of Rajasthan,”  said Chief Minister Vasundhara Raje after the pact was signed.

  It is believed that the biggest entrepreneurship drive would make 5,000 fair price shopkeepers become entrepreneurs with Annapurna Bhandaars. The inspiration for the scheme was a model from a store at Tamatia village in Dungarpur district. During her visit to the shop, she was surprised and impressed to find a ration shop, mini ATM, selling seeds, fertilisers and grocery products under a single roof.

The agreement aims at providing multi-brand consumer goods at competitive prices to the people. The districts topping the charts are Jalore, Jaisalmer, Dholpur, Jhunjhunu and Pali.

  According to Principal Secretary (food and civil supplies) Subodh Agarwal, the unique model will not only benefit the PDS but also improve supply chain to benefit people in cities, towns and villages. “After successfully converting 5,000 ration outlets into modern shops, we are all set to convert the remaining 20,000 shops,” he said.

Under the scheme, only FPSs with road connectivity and at least 200 sqft space would be converted into Bhandaars. The shops will be provided with an e-mitra and mini ATM in the second phase. Two machines have been installed in Pali and Sumerpur.

  Did the department have a smooth sail in implementing the Bhandaar scheme. The secretary says no. He called it a “willingness-based scheme.” The department had to engage shopkeepers in a dialogue and convince them on the benefits that would accrue to them with the changeover. “Since socio-economic conditions vary from place to place in Rajasthan, it was hard to convince fair price shopkeepers. Once they agreed, we trained them in modern practices. It has brought about a major change in the lives of shopkeepers. Earlier, they were called dealers but now they have become traders.”

The PDS was  selling only a few items. But now these Bhandaars deal in edible oil, ghee, pulses, jaggery, spices, different types of attas such as maida, besan and rava, and pickles, sauces and even personal care products like talcum powder, hair oil, shampoo, creams and other consumer products.

Besides supplying quality consumer goods at affordable prices to the FPS, the selling partner Future Group is training dealers in modern techniques and best management retail practices.
“The idea is to empower rural areas and to generate more employment. Earlier, the FPS would sell only kerosene, sugar and wheat, but Annapurna Bhandaars have over 150 products on their shelves.

In the first phase we converted almost 20% of the existing FPS into supermarkets. Rebates are offered on products sold at these shops. The shopkeeper can avail a loan to start his venture under the Prime Minister Mudra scheme for which tie-up has been made with banks,”said Preeti, General Manager, Marketing and Administration, Food and Supplies Corporation, Rajasthan.  Earlier, teenagers and youth were reluctant to visit the shop and help their  parents because of its profile. But now the scene is different.

“Upgrading my old shop into Annapurna Bhandaar has brought a new life. Earlier, I used to work for just 5-7 days in a month  for public distribution centre and earn Rs 6,000. Now, I open the shop throughout the month and earn Rs 25,000,” said Suresh Kumar Sharma, Annapurna Bhandaar owner at Bhambori village on the outskirts of Jaipur.

  His wife Bimla Bai, who helps him, added, “Earlier my husband used to sit idle at home after the completion of distribution of items under the PDS. Now he opens his shop 8 am and closes late in the night. He has become active and healthy,” she said with a chuckle. 

Interestingly, a few retail shops had closed down after Bhandaars commenced. “The scheme has certainly proved to be a success as many shops selling non-branded and inferior quality products had to down the shutters within months of Bhandaars began working. Most consumers shifted their preferences and started buying packed and branded items which are available at a cheaper rate,” Lokesh Chandra, District Coordinator for Annapurna Bhandaar Yojna, said.

The Future Group takes back unsold items within the expiry period. According to the Future Group's head for this scheme, Satish Sharma, this is the world's first entrepreneur model which has created a record by giving employment to thousands of people, quality food to consumers in just a few months.

 “We started the scheme with the Rajasthan government  by conducting a pilot by testing multi-brand consumer items provided at five shops in Jaipur and one in Udaipur in 2015. After getting positive response, the work started and we achieved the target before time. The group alone has given employment to 2,000 people, including 13 district coordinators, 1,000 employees on payroll and 1,000 others who work as transporters, loaders etc. A total of 13 warehouses store the goods,” he said.

At least 12 states, including Chhattisgarh, Karnataka, Uttar Pradesh, Haryana, Delhi, Gujarat and Madhya Pradesh have visited the districts to study the module and have shown interest in replicating it in their states. The success report has also been sent to Harvard University by the Future Group.