Ration dealers in Bihar are a central aspect to the distribution of subsidized essential commodities as part of the Public Distribution System (PDS) to the economically weaker sections of society. This article carefully investigates ration dealer salaries in Bihar for the year of 2025 and includes a detailed analysis of how commission works for ration dealers, associated benefits, job responsibilities, new recruitment and salary comparisons with other states.
Who is a Ration Dealer in Bihar?
A ration dealer, or a Fair Price Shop (FPS) dealer, is an authorized person appointed by the Bihar government to run a ration shop under the Public Distribution System. Their role is to offer subsidized food grains and other items to households that are under the National Food Security Act.
Ration dealers are a channel between the government and citizens for the proper distribution of grain stock to eligible beneficiaries. The dealers purchase stock and proceed to redistribute it in bulk in their assigned jurisdiction.
Ration Dealer Salary in Bihar 2025
In contrast to regular wage-earners in government positions, ration dealers in Bihar primarily receive compensation through a profit margin or commission on ration stock distribution.
Commission Increase
- In August 2025, Bihar’s cabinet raised the commission for ration dealers by 52%.
- At this time, the commission is approximately ₹258.40 for distributing a quintal (100 kg) of food grains.
- The commission is made up of a central contribution, a contribution from the state, and a contribution from state-run operations (with the state taking the largest share).
- Prior to the increase, the commission per quintal (100 kg) was ₹211.40.
Monthly Income
- Estimated monthly income is approximately between ₹15,000 and ₹20,000 based on the quantity of goods distributed.
- As an illustration, the ration dealer selling 50 quintals a month can earn almost ₹13,000 just from commission.
- Earnings also come from profits when selling other products, such as sugar, salt, and kerosene, which are part of the Public Distribution System (PDS).
- Some dealers have earnings supplemented from profits earned through their authorized sales.
Practical income variability
- Income is largely dependent on the supply of government deposits allocate to the dealer.
- Dealers in urban areas may trade a greater amount of stock, which impacts possible income.
- Additionally, monthly profits may vary due to seasonal supply, availability from the government, and changes in government policies.
Additional Allowance
- District-level incentives and incremental bonuses may be available for proper distribution and transparency.
- Depending on the location of the dealer, transportation or logistics subsidies may be available.
- Benefits & Incentives for Ration Dealers in Bihar
- Aside from commission income, ration dealers are afforded some benefits based to support their operations and some social benefits as follows:
- Operating Support: Support for shop renovation maintenance and systems to digitize their records.
Advantages and Incentives for Ration Dealers in Bihar
Ration dealers in Bihar receive benefits, apart from commission income, to facilitate their operations and social welfare benefits.:
- Operational Support: The benefit of support is provided for the renovation of the shop, maintenance and digital record keeping systems.
- Training & Capacity Building: Dealers undergo scheduled training sessions related to stock handling, ePOS, and grievance redressal.
- Social Security: Dealers that are registered under government schemes are entitled to healthcare and pension benefits.
- Preference for Reserved Categories: Women and people from reserved categories may receive preference during the dealer selection process.
- Role in Government Schemes: Dealers serve as back channels to public welfare schemes, creating a social benefit dimension to their role.
How to Become a Ration Dealer in Bihar?
Eligibility
- Should be a resident of Bihar.
- Minimum education requirement is 10th pass (Matriculation).
- Must be an adult (18 years+).
- Women, SC, ST, OBC candidates, and persons with disabilities may also be given preference.
Application Process
- Usually submits an application or sometimes applied via state government portal.
- You will need an Aadhaar card, proof of residence, educational qualification certificates, caste certificates (if applicable) bank account information, etc.
- You may be chosen via a merit list or a lottery depending on the district.
- Generally, Dealers licenses have a tenure of expiry and must be renewed each year or periodically by local offices.
Job Responsibilities and Working Conditions
To distribute rations to eligible cardholders as per Government orders, working quickly and safely while maintaining accurate records in the daily sales register and stock register.
- To ensure equity in distribution with no black marketing or exploitation.
- To maintain hygiene and safety standards in the shop.
- To report to the district administration and participate in pre-approved training programs.
- To handle issues and concerns raised by beneficiaries as needed.
- To coordinate with government supply chain personnel to ensure stock is replenished in a timely manner.
Challenges of this role include irregular stock occasionally delivered to the shop, an inconsistent market price and pressure from the district office, but one benefit of the role is respect within the local community and steady additional income.
Read more : Ration Dealer Salary Per Month in Bihar 2025
Salary Comparison with Other States
Bihar maintains one of the more competitive commission structures, increasing the attractiveness of the ration dealer role in this state.
State | Approximate Monthly Earnings (₹) | Notes |
Bihar | 15,000 – 20,000 | Recent commission hike (2025) |
Uttar Pradesh | 14,000 – 18,000 | District-dependent commission rates |
West Bengal | 12,000 – 19,000 | Includes more incentives |
Jharkhand | 13,000 – 17,000 | Basic commission based |
Conclusion
The ration dealers in the state of Bihar play an integral role in distributing commodities to marginalized populations in the state PDS scheme. Though not a salaried position, the increased commission rates has greatly improved the financial outlook of ration dealers, and made it a steady and acknowledged profession. It will be important for applicants interested in being ration dealers to also consider the commission based salary structure, responsibilities and application process as they make decisions about future careers. Not only do ration dealers benefit economically from being part of the PDS program and the communities they serve, but they gain social recognition from their participation and service.