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Fair price shop is the shops that distribute commodities like rice, wheat etc. as a part of the public distribution system. They're generally the stores o shops that sell daily commodities like wheat, rice, corn etc. for a lesser price. They're also called the ration stores. These shops or stores are mainly found in the semi-urban and rural areas of the country. They were mainly established to serve and help the backward and the poor classes of society.
The commodities distributed by these shops are usually from the government. The government buys these goods directly from the farmers and sells it to the shops for half price so that people can buy it at a lower price.
The main advantage of these kinds of shops is that the prices never increase or decreases. This is beneficial for the backwards class, so they get the commodities at a lesser price.
In recent times, the government has recommended the use of a biometric system for the FP's. This will ensure that everyone gets the necessary items and also prevent it from being sold in the black market.
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