TAG: GS 3: ECONOMY
THE CONTEXT: In a significant move towards enhancing the nutritional security of India’s population, the eB2B platform udaan has partnered with the Ministry of Consumer Affairs, Food and Public Distribution, and the Small Industries Development Bank of India (SIDBI).
EXPLANATION:
- This collaboration aims to transform Fair Price Shops (FPSs) into ‘Jan Poshan Kendras (JPK)’, which will not only provide essential nutrition-dense products but also empower small business owners across the country.
Objective of the Initiative:
- The primary goal of this initiative is to improve the income of Fair Price Shops (FPS) dealers.
- It simultaneously focus on enhancing the nutritional outcomes for the beneficiaries who rely on these outlets.
- By transitioning FPSs into Jan Poshan Kendras, the government aims to provide a wider range of products beyond the usual Public Distribution System (PDS) commodities.
- This transformation will help FPSs to become more than just distribution points for subsidized food grains, expanding their role into providing a variety of nutrition-rich, non-PDS commodities.
- The initiative was formally launched in New Delhi.
Role of udaan in the Initiative:
- udaan, as an eB2B platform, will play a crucial role in the success of Jan Poshan Kendras.
- The platform will enable these Kendras to access a diverse and extensive assortment of food products, thereby catering to the varied nutritional needs of the communities they serve.
- udaan’s platform will ensure that Jan Poshan Kendras are regularly stocked with a wide variety of essential and frequently demanded products, allowing them to serve large and diverse populations effectively.
- The mission of udaan has always been to empower small businesses and create a more inclusive marketplace.
- By modernizing Jan Poshan Kendras, udaan aims to help these essential community businesses thrive while contributing to the larger goal of ensuring that quality and affordable nutrition is accessible to all Indians.
Pilot Project and Expansion Plans:
- The initiative is currently being piloted across four states: Rajasthan (Jaipur), Uttar Pradesh (Ghaziabad), Telangana (Hyderabad), and Gujarat (Ahmedabad).
- In this pilot phase, 60 Fair Price Shops (15 from each selected district) have been identified for transformation into Jan Poshan Kendras.
- This pilot will serve as a testbed for the model, and upon successful validation, the initiative is set to expand significantly.
- The long-term plan involves modernizing nearly 1.3 lakh Fair Price Shops identified by the Ministry of Consumer Affairs, Food and Public Distribution.
- The expansion will provide these shops with the infrastructure and resources needed to operate as fully functional Jan Poshan Kendras, delivering a variety of nutritional options to the communities they serve.
Financial Support and Upskilling:
- SIDBI’s role in this initiative is crucial, as the bank will offer credit facilities to the Jan Poshan Kendras.
- This financial support will enable these Kendras to purchase food grains and Fast-Moving Consumer Goods (FMCG) products through udaan’s platform.
- Moreover, the initiative will also focus on upskilling FPS dealers, equipping them with the knowledge and tools necessary to manage and operate these Kendras efficiently.
Product Availability and Community Impact:
- As part of the pilot project, udaan will provide access to over 3,500 products across various staples and FMCG categories.
- This wide range of products will ensure that Jan Poshan Kendras can meet the diverse nutritional requirements of their local communities.
- The initiative aims to provide not just variety but also adequate quantities of these products at regular intervals, ensuring a consistent supply of nutrition-dense commodities.
Small Industries Development Bank of India (SIDBI)
- It was set up on 2nd April, 1990, under an Act of the Indian Parliament.
- It acts as the principal financial institution for promotion, financing, and development of the Micro, Small and Medium Enterprise (MSME) sector, as well as for the co-ordination of functions of institutions engaged in similar activities.
- It is under the jurisdiction of the Ministry of Finance, GoI.
- It was incorporated in initially as a wholly owned subsidiary of the Industrial Development Bank of India (IDBI).
- Currently the shares of SIDBI are held by the Government of India (GoI) and 22 other institutions/PSBs/insurance companies owned or controlled by the Central Government.
- Its headquarters is in Lucknow, Uttar Pradesh.
Jan Poshan Kendra
- Jan Poshan Kendras are a new initiative by the Government of India to transform regular ration shops (Fair Price Shops or FPS) into nutrition-focused community centers.
- The key aspects of this initiative are:
- Pilot project launched to convert 60 FPS into Jan Poshan Kendras in 4 states: Uttar Pradesh, Gujarat, Rajasthan, and Telangana
- Goal is to increase availability of nutritious food items and provide more benefits to FPS dealers
- Upgraded ‘Mera Ration’ app and other initiatives like Quality Manual Handbook, Digital Quality Management System launched alongside
- Collaborative efforts with SIDBI for easy credit to FPS dealers and with Skill Development Ministry for entrepreneurship training
- If successful, the pilot could pave way for transforming the 5.38 lakh FPS network across India into Jan Poshan Kendras
- Benefits of Jan Poshan Kendras
- Wider range of nutritious products like millets and pulses will be made available to beneficiaries
- FPS dealers will get more income opportunities by utilizing shop space and manpower better
- Addresses operational inefficiencies like FPS being open for just 8-9 days in some areas or once every 3 months in others
- Empowers essential community businesses while ensuring affordable nutrition for all Indians