THE CENTRE’s directive to states to verify ration card holders — using a list it has prepared by matching details of beneficiaries with databases of taxpayers, car owners and company directors — has sparked concern among Farmer Producer Organization (FPO) directors/members, prompting some to consider resigning from their positions.
FPOs are collectives of farmers registered as companies, with the managing board of directors selected from among the members. These were formed under a Central Sector Scheme launched in February 2020 to help small farmers access inputs, finance and markets collectively, thus increasing their income.
According to sources, FPO directors across several states, including Gujarat, Jharkhand, Madhya Pradesh and Manipur, have received notices for verification of eligibility of their ration cards after their names appeared on the list, shared by the Union Ministry of Consumer Affairs, Food and Public Distribution with states last month. The states were asked to undertake necessary field verification and remove the ineligible ration card holders by September 30.
As reported by The Indian Express earlier, in this cross-verification exercise, the Department of Food and Public Distribution found that 94.71 lakh ration card holders are taxpayers, 17.51 lakh are owners of four-wheelers and another 5.36 lakh ration card holders are Director Identification Number holders, or directors/members in companies.
According to sources, many of the FPOs whose directors/members have received the notices are still at a nascent stage.
Among those who have received the notices from the district administration are Priti Kumari, Sanjo Devi and Kalavati Devi — of Ghat Jamni Tapuwa Natural Fed Producer Company Limited, an FPO in Jharkhand’s Sahibganj district, which was registered in 2023 and it is yet to do any business.
Their families are PHH [Priority Households] beneficiaries under the National Food Security Act and receive ration as per the number of persons in their family (5 kg per person).
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Kalavati, a resident of Ghat Salempur village in the district who works as a labourer to support her family, said she has offered to resign from the FPO to protect the 25 kg of wheat and rice her family receives every month under the NFSA. In fact, she said, several directors/members of the FPO have offered to resign, prompting it to hold a meeting on August 6.
“Ration card is more important for my family than my being a member/ director of the FPO,” she told The Indian Express over phone, adding directors of the Ghat Jamni Tapuwa FPO do not receive any remuneration.
In Manipur, too, the director/ members of FPOs working in the fisheries sector have received notices for verification of their ration cards. The ISAP India Foundation, which operates as a Cluster Based Business Organization (CBBO) under Pradhan Mantri Matsya Sampada Yojana (PMMSY) in the state, has flagged the issue with the Manipur government.
In a letter to the District Supply Office, Bishnupur, Manipur on July 29, ISAP Technical Expert Surajkumar Sharma flagged “the cancellation of some of our farmers which are inducted as Board of Directors for a Fish Farmer Producer Organization under Moirang Block… Recently a notice was issued to them regarding cancellation of their Ration Card for the reason being the Board of Directors of a Fish Farmer Producer Company.”
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“… furthermore same issue might come with Bishnupur Block and Nambol block, in which one each FFPO are formed… We will like to draw your kind attention regarding this matter,” Sharma wrote.
In Madhya Pradesh’ Alirajpur district, the district administration sent a show cause notice to Manish Bhura, one of the FPO directors, giving him 15 days to explain why his ration card should not be cancelled.
“I am directed to examine the category of your eligibility as you are working as a director in a registered company as per the information received by the Ministry of Consumer Affairs, Food and Public Distribution, New Delhi from the [Ministry] of Corporate Affairs… Due to holding the post of director in a registered company, you don’t qualify to become a beneficiary of the National Food Security Act, 2013. You can submit your objections and in favour as to why should not your ration card be cancelled within 15 days,” the notice read.
According to sources, a similar notice was issued to Rajkumari Sahu in Dindori district in Madhya Pradesh. Notices have been issued in Gujarat also, the sources added.
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The Union Food Ministry has said it is the responsibility of the states to identify eligible beneficiaries under the NFSA as per their own inclusion and exclusion criteria.
Responding to a query from The Indian Express, a food ministry official said that the Centre has shared details of 5.36 lakh Director Identification Number holders to states, who also have ration cards. Of the 5.36 lakh individuals, the states have verified 39,251 DIN holders till August 1, 2025 — and the ration cards of 26,255 DIN holders have been cancelled, said the official.
“This means that only two-third ration cards have been cancelled. The remaining one-third are there,” the official said.
Sources said that the Agriculture Ministry, which implements the FPOs scheme, has also flagged the issue with the Ministry of Food and Public Distribution.
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Apart from directors/members in companies, the Centre has also flagged duplicate beneficiaries, silent beneficiaries (who have not taken ration for more than 12 months), deceased beneficiaries, single member ration card with age below 18 years, beneficiaries with income more than 6 lakh, beneficiaries with gross turnover more than 25 lakh, and beneficiaries with 4 wheeler vehicles.
