On 23 SEP 2025, the Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) signed a Memorandum of Understanding (MoU) for the Financial Year 2025–26 in New Delhi. The MoU sets out performance parameters and modernization goals to ensure greater efficiency and accountability in foodgrain management. The agreement reinforces the government's strategy of adopting system-based approaches and technology-driven solutions in subsidy operations, emphasizing reduced storage losses, improved warehousing capacity, enhanced logistics, strengthened quality control, wider digitization, and modern IT solutions, supported by dedicated capacity-building programs for FCI employees. FCI, established in 1965 under the Food Corporations Act, 1964, is fully financed through government subsidies and plays a central role in the nation's food security. The MoU introduces a results-oriented framework for FCI, reflecting the government's vision of modernizing foodgrain management.
(Release ID: 2170283)
Key Entities Referenced
Memorandum of Understanding (MoU): Agreement between DFPD and FCI for financial year 2025-26 focusing on performance, modernization, and efficiency in foodgrain management.
Department of Food and Public Distribution (DFPD): A department involved in signing the MoU to improve foodgrain management.
Food Corporation of India (FCI): Public service agency tasked with procurement, storage, movement, and distribution of foodgrains, and a party to the MoU.
Food Corporations Act, 1964: Act under which the Food Corporation of India was established.
Ministry of Consumer Affairs, Food & Public Distribution
Department of Food and Public Distribution and
Food Corporation of India signs MoU to strengthen
foodgrain management
Posted On: 23 SEP 2025 7:37PM by PIB Delhi
The Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) today
signed a Memorandum of Understanding (MoU) for the Financial Year 2025–26 in New Delhi. The
agreement sets out performance parameters and modernization goals aimed at ensuring greater efficiency and
accountability in foodgrain management.
Through this MoU, the Government has reinforced its strategy of adopting system-based approaches and
technology-driven solutions in subsidy operations. The agreement emphasizes reducing storage losses,
improving the utilization of warehousing capacity, enhancing logistics and supply chain performance, and
strengthening quality control. It also envisions wider digitization of processes and the use of modern IT
solutions to streamline operations, supported by dedicated capacity-building programmes for FCI employees.
The Food Corporation of India, established in 1965 under the Food Corporations Act, 1964, plays a central
role in the nation’s food security framework. Tasked with procurement, storage, movement and distribution of
foodgrains, FCI operates as a public service agency on behalf of the Government of India. Its activities are
fully financed through the food subsidy released by the Government, making it vital that public funds are
managed with maximum transparency and cost-effectiveness.
By laying out measurable annual targets, the MoU introduces a results-oriented framework for FCI’s
functioning. It reflects the Government’s broader vision of modernizing foodgrain management and ensuring
that every rupee spent on food subsidy delivers optimum value. With this step, DFPD and FCI are working
towards building a more efficient, transparent and resilient food security system for the country.
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Abhishek Dayal/ Nihi Sharma/ Anushka Pandey
(Release ID: 2170283)