AP Launches "Mee-Mart" Retail Stores to Rival D-Mart, CM to Inaugurate 1,000 Outlets on October 1

In a major overhaul of the state's public distribution system, Food and Civil Supplies Minister Nadendla Manohar has announced the launch of "Mee-Mart" retail stores designed to compete with large supermarket chains like D-Mart. Chief Minister N. Chandrababu Naidu will inaugurate the first 1,000 stores on October 1, 2026, as part of a plan to convert the state's roughly 29,750 ration shops into modern outlets offering everyday essentials at discounted prices.

The stores are being built as a public-sector alternative to low-cost private supermarkets. While the pilot in Guntur started with just 60 to 64 essential items, the network will expand to over 250 branded and unbranded products, including edible oils, pulses, spices, packaged foods, and personal care items. Prices will be kept ₹3 to ₹5 below open-market rates, with premium Sona Masoori/BPT rice selling at ₹50-52 per kg, compared to over ₹64 in the open market, and onions priced at ₹32 per kg to help control price spikes. Supplies will be sourced through a partnership with the National Cooperative Consumers' Federation of India (NCCF), cutting out middlemen margins.

A key goal of the initiative is to fix the long-standing financial struggles of ration shop dealers, who have traditionally survived on thin commissions from rice and sugar sales, a system that often led to grain diversion and black-marketing. By turning ration shops into multi-product stores, the government aims to give dealers a steady, diversified income. The stores will feature modern shopfronts, electronic billing systems, and digital payment options, with future plans to integrate with the RBI's Digital Rupee system.

While the pilot in Guntur district, including areas like Lalupuram and Prathipadu, received a positive response from customers, scaling up to 1,000 stores by October 1 comes with challenges. Many traditional dealers operate out of small shops and may lack the capital needed to stock a full retail inventory. Private players like D-Mart rely on highly automated warehouses and just-in-time delivery systems, so for Mee-Marts to earn customer trust, the Civil Supplies Corporation and NCCF will need to ensure uninterrupted supply across both rural and urban areas. After the October 1 launch, the department plans to expand Mee-Marts in phases across all urban and rural areas of coastal Andhra and Rayalaseema.