Department of Food and Public Distribution (DFPD) and Food Corporation of India (FCI) on Monday (September 23, 2025) signed a Memorandum of Understanding (MoU) for the financial year 2025–26 in New Delhi, aiming to modernise India’s foodgrain management system.
The agreement establishes clear performance targets and outlines modernization goals aimed at enhancing efficiency, transparency, and accountability in foodgrain management. It emphasizes the use of technology-driven solutions and systematic approaches for subsidy operations. Key objectives include reducing storage losses, optimizing warehousing capacity, improving logistics and supply chain performance, and strengthening quality control measures.
The MoU also promotes wider digitisation of processes and the adoption of modern IT tools, supported by capacity-building programmes for FCI employees, to streamline operations and ensure the effective use of public funds.
Established in 1965 under the Food Corporations Act, 1964, FCI plays a central role in India’s food security framework. The corporation is responsible for the procurement, storage, movement, and distribution of foodgrains, functioning as a public service agency funded entirely through government subsidies.
MoU sets measurable annual targets, highlighting the Government’s push for more efficiency and accountability in food subsidy operations while boosting the country’s food security.
