FCI Sign MoU to Enhance Efficiency and Accountability in Food Grain Distribution

New Delhi- The Department of Food and Public Distribution (DFPD) of the Government of India and the Food Corporation of India (FCI) have signed a Memorandum of Understanding (MoU) for the fiscal year 2024-25. This agreement aims to improve the efficiency and accountability in the procurement and distribution of food grains.

The MoU sets forth specific performance benchmarks, including those for FCI depots, with a focus on optimizing public fund usage for food security operations. Key efficiency parameters for FCI depots include capacity utilization, minimizing operational losses, strengthening security measures, and modernizing processes through automation.

This initiative reflects the central government’s commitment to refining the Public Distribution System (PDS) and ensuring that food subsidy funds are used efficiently by improving the overall performance of FCI’s operations and its depots.

Established in 1965 under the Food Corporations Act of 1964, the FCI’s main responsibility is the procurement, storage, transportation, distribution, and sale of food grains. Operating under the mandate of the DFPD, the corporation does not generate its own revenue and is entirely funded by the Government of India’s food subsidy.

Given the substantial public expenditure involved, it is essential to evaluate these operations for their cost-effectiveness and value for money. This evaluation is achieved by benchmarking critical operational metrics and ensuring institutional accountability.