Govt Signs MoU with FCI to Boost Efficiency and Accountability in Food Grain Distribution for FY 2024-25

Department of Food and Public Distribution (DFPD), Government of India, along with the Food Corporation of India (FCI), has signed a Memorandum of Understanding (MoU) for the fiscal year 2024-25. The agreement aims to improve the efficiency and accountability in the procurement and distribution of food grains, ensuring the effective management of public funds allocated to food security operations.

Key aspects of the MoU include performance benchmarks, particularly for FCI depots, which will be evaluated based on various efficiency parameters. These benchmarks focus on optimizing capacity utilization, minimizing operational losses, enhancing security measures, and modernizing the processes within the depots through automation. This initiative underscores the central government's commitment to refining the Public Distribution System (PDS) and managing food subsidy funds with the highest level of efficiency.

FCI, established in 1965 under the Food Corporations Act of 1964, is tasked with essential functions such as purchasing, storing, transporting, and distributing food grains across India. As a public service entity, FCI operates on behalf of DFPD and does not generate income independently. Its operations are fully funded through food subsidies provided by the Government of India.

Given the substantial public expenditure involved in maintaining food security, the MoU emphasizes the need to evaluate the cost-effectiveness of these operations. By establishing performance benchmarks and enhancing institutional accountability, the agreement seeks to ensure that the food distribution system operates in a manner that provides maximum value for public funds.

This will ultimately contribute to a more efficient and transparent food procurement and distribution system across the country.