The Andhra Pradesh government, led by Chief Minister N Chandrababu Naidu, which has already reversed several decisions made by the previous Y S Jagan Mohan Reddy administration, has now scrapped yet another scheme.
On Tuesday, the state cabinet, chaired by Naidu, decided to discontinue the existing system of delivering essential commodities to consumers’ doorsteps through Mobile Dispensing Units (MDUs) and revert to the earlier method of distributing these commodities through Fair Price Shops (FPS) starting June 1.
Speaking to the media after the cabinet meeting, Civil Supplies Minister Nadendla Manohar said the decision was made based on consumer feedback collected via the IVRS system.
The survey revealed that 25% of consumers reported not receiving essential commodities, while 26% said MDU operators were charging excess amounts. Additionally, each MDU was covering only three FPS areas over 15–17 days, leading to issues such as commodity diversion and manpower shortages.
“This decision will save the government ₹353.81 crore,” Manohar stated.
Previously, ration items were distributed through 29,000 Fair Price Shops. The Jagan Mohan Reddy government had scrapped this system and introduced MDUs.
Manohar alleged that ₹1,860 crore of public funds were misused to procure 9,260 MDU vehicles, with an additional ₹200 crore spent on a pilot project. However, the vehicles failed to provide tangible benefits and allegedly contributed to rice smuggling.
“Each vehicle receives ₹27,000 per month from the corporation, but there is no trace of 570 vans so far. Beneficiaries have faced significant difficulties because of these vans, which cost ₹385 crore,” he said.
Manohar noted that under the FPS system, consumers could collect goods at their convenience — a flexibility lost with the MDU system.
“Therefore, starting June 1, we will resume distribution through Fair Price Shops. However, we will ensure door delivery for senior citizens above 65 years of age and differently-abled individuals. This new system will curb rice diversion. We also plan to allow the sale of other goods through FPS,” he added.
He further stated that for individuals who acquired MDU vehicles through SC, ST, BC, EBC, and other welfare corporations and paid 10% of the cost, the vehicles would be given to them free of charge.
