New Delhi : The Department of Food & Public Distribution (DFPD) and the Food Corporation of India (FCI) have signed a Memorandum of Understanding (MoU) for Financial Year 2026–27, establishing a comprehensive performance framework aimed at improving operational efficiency, strengthening accountability and accelerating the modernisation of foodgrain management.
The MoU sets measurable targets across key areas, including reducing storage losses, optimising storage capacity, improving logistics and supply chain management, and strengthening quality control mechanisms.
It also places strong emphasis on the digitisation of business processes and adoption of modern Information Technology solutions to improve efficiency, transparency and real-time monitoring of FCI operations.
As part of the modernisation drive, the agreement provides for capacity building and skill development of FCI employees, enabling them to effectively adopt emerging technologies and contemporary systems for foodgrain management.
Established in 1965 under the Food Corporations Act, 1964, FCI plays a critical role in India’s food security architecture by undertaking the procurement, storage, movement and distribution of foodgrains on behalf of the Government of India. Given the scale of public resources involved, efficient utilisation of food subsidy and continuous improvement in operations remain key priorities.
A significant feature of the MoU is its outcome-oriented performance framework, under which FCI’s functioning will be assessed against clearly defined annual targets and parameters. The framework seeks to promote efficient utilisation of resources, enhance transparency and encourage technology-driven solutions across the organisation.
A portion of the targets has also been linked to the performance of FCI depots through the Depot Darpan Portal, a web-based platform designed to assess depot infrastructure and operational efficiency. Target-based benchmarks will help improve physical infrastructure, strengthen depot operations and promote continuous improvement.
The signing of the MoU underlines the Government’s focus on modernising India’s foodgrain management system and strengthening the efficiency and resilience of the country’s food security framework. The performance-based approach is also aimed at ensuring that food subsidy resources are utilised in a cost-effective and transparent manner while delivering greater value to citizens.