Department of Food and Public Distribution and Food Corporation of India signs MoU to strengthen foodgrain management

The Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) today signed a Memorandum of Understanding (MoU) for the Financial Year 2025–26 in New Delhi. The agreement sets out performance parameters and modernization goals aimed at ensuring greater efficiency and accountability in foodgrain management.

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.

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.

By laying out measurable annual targets, the MoU introduces a results-oriented framework for FCI’s functioning. It reflects the Government’s broader vision of modernizing foodgrain management and ensuring that every rupee spent on food subsidy delivers optimum value. With this step, DFPD and FCI are working towards building a more efficient, transparent and resilient food security system for the country.