The role of fair price shops is very important for T.P.D.S. It reflects the grounds operation and activities of the department. For the distribution of T.P.D.S. food grains fair price shops are allocated by the concerned District Controller, Food, Civil Supplies and Consumer Affiars/Deputy Commissioner on the recommendations of concerned Panchayat/Zila Parishad. At the time of allotment of fair price shops preference is given as under:

1. First Priority: Public Institutions or public bodies such as Panchayats, self help groups, co-operative, in licensing of fair price shops and management of fair price shops by women or their collectives.

2. Second Priority:  Ekal nari (as defined by the Department of Women and child Development, Govt. of H.P.), Widow (s) raising children on their own, physically handicapped person (as defined in the Person with Disablities (Equal opportunities, protection of rights and Full Participation) Act, 1995) capable of efficiently handling the FPS operation, Ex-Servicemen/unemployed educated person with no family member in regular employment.

3. Third Priority: H.P. State Civil Supplies Coropration Ltd.

There will be no change in other provisions / guidelines notified vide Notification No. FDS-F(10)-06-2012 dated 02-08-2014.

 There are 5,011 fair price shops as on 31-12-2020. Out of these fair price shops, 3,265 are run by the Cooperative Societies, 1,646 by Individuals, 14 by Panchayats, 20 by Mahila Mandals and 66 by H.P. State Civil Supplies Corporation Ltd.