FAIR PRICE SHOPS
           Essential commodities like Rice, Wheat, Sugar, Iodised Salt and Kerosene are being distributed to the targeted cardholders as per the eligibility and rates fixed by the Government through the Fair Price Shops. In crisis essential commodities like pulses, onions, edible oils and vegetables (tomato and potato) are also being supplied through the fair price shops under Market Intervention.
Objectives
         To ensure proper supply of essential commodities through the fair price shops to the targeted cardholders at the quantum and rates fixed by the Government. As a result, the consumers are relieved from the clutches of the traders’ rampant exploitation.
Functions
       The fair price shop dealers are required to lift the allotted essential commodities by paying the cost and make available adequate stocks at any given time. They shall distribute the essential commodities to the cardholders as per their eligibility and rates fixed. 
       To ensure smooth and effective functioning of fair price shops, the Government have issued APS PDS (Control) Order, 2001 vide G,O, Ms. No. 16 CA F & CS (CS I) Department dated 6-4-02.

APS PDS (Control) Order, 2001
      Pursuant to the issuance of PDS Control Order by the Government of India, Government of Andhra Pradesh have issued APS PDS (Control) Order, 2001 vide G,O, Ms. No. 16 CA F & CS (CS I) Department dated 6-4-02. The provisions of the control order facilitate the enforcement official to ensure that the essential commodities are reached to the cardholders. To have instant initiation of departmental action against the erring fair price shop dealers, the Government have issued an amendment to the APS PDS (Control) Order, 2001, designating the ASOs of Hyderabad, Vijayawada, Thirupathi, Kurnool, Visakhapatnam and Rajahmundry and MRO of other areas.
Food Advisory Committees
To review the functioning of fair price shops, the Government have issued instructions to constitute food advisory committees at various levels. The committees dogive their suggestions for revamped PDS through fair price shops during the meetings being conducted at regular intervals.

There are relentless complaints that there is rampant leakage/diversion of essential commodities. The Panchayat Raj Institutions do play a vital role in effective functioning of PDS at gross root level. As such, the Government, in recent past have issued amendment for reconstitution of food advisory committees with new pattern of members at District, Mandal and Village level food advisory Committees vide G.O. Ms. No. 7, CA F &CS (CS I) Department dated 1-2-06 involving the Panchayat Raj Institutions. Certain tasks have been assigned to the members including supervision on functioning of fair price shops.
Bifurcation of fair price shops:
Pursuant to the orders of the Government of India, Government of Andhra Pradesh have issued instructions to all the District Collectors to ensure that each and every village shall have a fair price shop. In tribal areas for every 1000 population there shall be a separate fair price shop and in non tribal areas for every 1650 population there shall be separate fair price shop. While bifurcating the fair price shops the Collectors shall keep in mind the economic viability.