Insurance cover now must for PDS outlets: Bengal

KOLKATA: Mamata Banerjee-led West Bengal government has made insurance cover mandatory for all fair price shops in the public distribution system (PDS), popularly known as ration shops.

On November 21, principal secretary, state food & supplies department, Manoj Kumar Agarwal issued the order.

West Bengal government is the first state government in India to make insurance coverage mandatory for all the fair price shops affiliated to it, state food & supplies minister, Jyotipriyo Mullick claimed.

There are 20,268 fair price shops throughout the state.

“This year several dealers faced loss of stocks because of the floods. Mandatory insurance coverage will relieve the financial burden of the state government that is faced with the demands of compensating the dealers,” said Mullick. However, he could not say the quantum of compensation that the government has to pay.

“The rule will be applicable for both existing dealers as well as for future applicants for ration card license. For new applicants the clause for mandatory insurance coverage will be included in the application form. For existing dealers, the government will either cancel, or not renew, the license if they do not get insurance coverage policies within a specific period of time,” Mullick said.

Under the present system, the government has to compensate the dealers for the loss.