The Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) recently came together in New Delhi to sign a Memorandum of Understanding (MoU) for the Financial Year 2025–26. This agreement outlines key performance indicators and modernization objectives designed to boost efficiency and accountability in managing food grains.
Through this MoU, the Government has reinforced its strategy of adopting system-based approaches and technology-driven solutions in subsidy operations. The agreement emphasizes reducing storage losses, improving the utilization of warehousing capacity, enhancing logistics and supply chain performance, and strengthening quality control. It also envisions wider digitization of processes and the use of modern IT solutions to streamline operations, supported by dedicated capacity-building programmes for FCI employees.
Key Highlights of MOU
- On 23 September, an MoU for the Financial Year 2025–26 was signed in New Delhi by the Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI).
- The agreement sets performance parameters and modernization targets to ensure greater efficiency and accountability in food grain management.
- With this MoU, the Government has strengthened its strategy to adopt a systems-based approach and technology-driven solutions in subsidy operations.
- The MoU focuses on reducing storage losses, improving storage capacity utilization, improving logistics and supply chain performance, and strengthening quality control.
The Food Corporation of India, established in 1965 under the Food Corporations Act, 1964, plays a central role in the nation’s food security framework. Tasked with procurement, storage, movement and distribution of foodgrains, FCI operates as a public service agency on behalf of the Government of India. Its activities are fully financed through the food subsidy released by the Government, making it vital that public funds are managed with maximum transparency and cost-effectiveness.
