About 80 crore people in the country take ration grains every month for free or at concessional rates under the PDS i.e. Public Distribution System. The most important part of this entire system is the Fair Price Shop (FPS), i.e. ration shops. In common parlance, these shops are called quota shops. The person who operates them is called Kotedar. According to government figures, more than 5.4 lakh ration shops are operating in the country.
It is through quota shops that wheat, rice and other food grains are provided to eligible families under the National Food Security Act (NFSA). In recent years, Kotedars have agitated in many states demanding low commission, rising operating expenses and the status of government employees. Now, on 28 July 2026, ration quota holders of Uttar Pradesh staged a massive demonstration in Lucknow demanding increase in commission and payment of dues.
The Kotedars have warned of stopping ration distribution in the entire state in the month of August if their demands are not met. In UP, farmers get only Rs 90 per quintal as dividend (commission), there is a demand to increase it to Rs 200 per quintal. He says that in other states like Haryana, Goa and Gujarat, commission and honorarium are much higher. Apart from this, he is also angry with the pending payments.
How do Kotedars earn?
- Kotedars do not get salaries, their income is mainly based on the commission received on ration distribution.
- Under the National Food Security Act, the Central Government gives a fixed financial assistance to the states on per quintal distribution of grains.
- Apart from this, state governments can also give additional commission or honorarium at their level.
- What this clearly means is that the income of Kotedars is not the same all over the country.
In the year 2022, the Central Government had fixed the basic margin of Rs 90 per quintal for the farmers in general states and Rs 180 per quintal for North-Eastern, Himalayan and Island states. Apart from this, additional amount is also given as assistance on distribution of grains through e-POS machine. However, this amount does not come directly into the accounts of the tenants, but is provided to the state government by the Central Government. If the state government wants, it can pay the tenants for this from its budget. The commission and income of Kotedars are different in every state.
How much commission do Kotedars get in which state?
- In Uttar Pradesh, Kotedars get Rs 90 per quintal for distribution of ration.
- In Bihar, Kotedars get a total commission of Rs 258.40 per quintal.
- In Maharashtra, ration shopkeepers or Kotedars get a commission of Rs 170 per quintal.
- Ration dealers in Rajasthan get commission of Rs 150.70 per quintal on wheat distribution.
- In Madhya Pradesh, commission is given to Kotedars at the rate of Rs 70 per quintal.
- In Chhattisgarh, farmers are given Rs 120 per quintal.
What other facilities are given to Kotedars for additional income?
In UP, many facilities related to e-POS machine, digital payment and delivery system are provided to the Kotedars on ration distribution so that they can earn more income. In Rajasthan, the state government gives additional margin to the Kotedars. Apart from this, many ration shops have also been linked to e-Mitra services. With this, tenants can earn extra income through electricity bill deposit, certificates and other government services.
In Madhya Pradesh too, many ration shops have been linked to services like Common Service Center (CSC) so that the tenants can earn extra income through digital services. On the other hand, in Kerala and Tamil Nadu, most of the ration shops are run through cooperative institutions. In many shops here, employees also get regular salary and other facilities.
What is the average earning of a Kotdar?
The monthly income of a Kotedar depends entirely on how many ration cards are linked to his shop and how much ration is being distributed every month. Generally, the monthly income of ration shops operating in small villages is between Rs 8,000 to Rs 15,000. At the same time, in medium-sized shops this income can reach Rs 15,000 to Rs 30,000. In shops where a large number of beneficiaries are associated, Kotedars can earn an income of Rs 40,000 to Rs 50,000. But Kotedars say that after taking out shop rent, electricity, employees, transportation and other expenses, the savings are quite less.
What has been the demand of the Kotedars for a long time?
Meanwhile, there have been reports of agitation by Kotedars in many states. He has been raising demands of Rs 30,000 to Rs 50,000 monthly honorarium, government employee status, pension, health insurance, accident insurance, full payment of transport expenses and increase in commission from time to time. He says that with the increase in the scope of the free ration scheme, the workload has also increased, but the commission has not increased in the same proportion. Apart from this, new responsibilities like digital verification, Aadhaar authentication and record keeping have also come on them.
Why not have the same commission across the country?
The public distribution system in India is jointly managed by the central and state governments. The central government provides food grains and decides the minimum financial support, while the operation of ration shops, additional commission, honorarium and other facilities are decided by the state governments as per their budget and policies. This is the reason why there is a huge difference in the income and facilities of Kotedars in every state.
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