Q- What is fair Price shop? Why there is a system of ration cards provided by the government?
Answer- The ration shops which were set up by Indian government to help poor people. These shops were made within the Public Distribution System which was introduced by Indian government. Public Distribution System is a kind of stock of food grains which was created by Indian government to distribute food grains in the deficit areas and among the poorer section of the society.
At a very low price or minimum support price that can be easily afforded by that poor people. This minimum support price of the food grains is very low than the market price. This would help in solving the problem of shortage of food during bad harvest season or during periods of calamity.
The system of providing ration card to people who are below poverty line is made to prevent chances of people who are not below poverty line and enjoying the benefit of those poor people.
There are several merits of Public Distribution System. The three major merits or benefits of Public Distribution System are as follows:
1. It helped poor people to prevent them from food insecurity and make them food secure.
2. This reduces poverty in India as this helped poor people to afford food grains very easily at cheap rate.
3. Due to decrease in poverty in India it helped India to become self-sufficient.