The Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) have signed a Memorandum of Understanding (MoU) in New Delhi for the financial year 2025–26. The agreement marks a significant step towards modernizing India’s foodgrain management system with a focus on efficiency, accountability, and transparency.
Key Highlights of the MoU
- System-based approaches: Greater adoption of technology-driven solutions in subsidy operations.
- Minimizing storage losses: Measures to ensure better utilization of warehousing capacity.
- Improved logistics: Enhancing the efficiency of supply chain and transportation systems.
- Quality assurance: Stronger quality control mechanisms to safeguard foodgrain standards.
- Digitization: Wider use of IT solutions for process streamlining.
- Capacity building: Training programs for FCI employees to strengthen institutional capability.
Why It Matters
Established in 1965, FCI plays a pivotal role in India’s food security by handling procurement, storage, and distribution of foodgrains. Funded entirely through government subsidies, FCI’s operations require the highest standards of cost-effectiveness and transparency.
By introducing measurable performance parameters, this MoU creates a results-oriented framework for FCI. It reflects the government’s vision to ensure that every rupee spent on food subsidies delivers maximum value to citizens.
The Bigger Picture
With this agreement, DFPD and FCI aim to build a more resilient food security system—one that reduces waste, leverages modern technology, and ensures timely availability of foodgrains across the country.
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