The Department of Food & Public Distribution (DFPD) and the Food Corporation of India (FCI) have signed a Memorandum of Understanding (MoU) for 2026-27 aimed at improving operational efficiency, strengthening accountability and accelerating the modernisation of the country’s foodgrain management system.
The MoU, signed in New Delhi, establishes a performance-based framework for FCI with clearly defined annual targets covering storage, logistics, quality control and the use of technology.
Key focus areas include reducing storage losses, optimising storage capacity, improving logistics and supply chain management, and strengthening quality control mechanisms.
The agreement also emphasises greater digitisation of FCI’s business processes and the adoption of modern information technology solutions to improve transparency, operational efficiency and real-time monitoring.
As part of the modernisation drive, the MoU provides for capacity building and skill development of FCI employees, with the aim of equipping the workforce to adopt emerging technologies and contemporary foodgrain management systems.
Established in 1965 under the Food Corporations Act, 1964, FCI is responsible for the procurement, storage, movement and distribution of foodgrains on behalf of the government. Its operations are central to maintaining the country’s food security and involve significant public resources.
The new framework seeks to link FCI’s performance with measurable annual outcomes, encouraging more efficient use of resources and greater transparency in its operations.
A portion of the targets has also been linked to the performance of FCI’s depots through the Depot Darpan Portal, a web-based platform used to assess depot infrastructure and operational efficiency. The performance benchmarks are intended to strengthen physical infrastructure, improve depot-level operations and promote continuous improvement.
The Ministry of Consumer Affairs, Food and Public Distribution said the MoU is part of its broader efforts to modernise foodgrain management and make the country’s food security architecture more efficient and resilient.
The performance-linked approach is also aimed at ensuring more cost-effective and transparent utilisation of food subsidy resources while improving the overall efficiency of the foodgrain supply chain.
