DFPD, FCI sign MoU to modernise India's foodgrain management

New Delhi: The Department of Food & Public Distribution and the Food Corporation of India has signed a Memorandum of Understanding (MoU) for FY27 that sets defined targets to cut storage losses, optimise capacity use and accelerate modernisation of the country’s foodgrain management, an official statement said on Tuesday.

The MoU also establishes a comprehensive performance framework for FCI, to improve operational efficiency, strengthen accountability, the statement from the Department of Food & Public Distribution said.

The agreement introduces a measurable and outcome-oriented approach to FCI’s functioning by linking its performance with clearly defined annual parameters. The framework aims to promote greater efficiency in the utilisation of resources, strengthen transparency in operations and encourage adoption of technology-driven solutions across the organisation.

The MoU focuses on improvement in logistics and supply chain management, and strengthening of quality control mechanisms. It also places emphasis on greater digitisation of business processes and adoption of modern Information Technology solutions to enhance efficiency, transparency and monitoring of FCI’s operations.

As part of the modernisation agenda, the MoU provides for capacity building and skill development initiatives for FCI employees, enabling the organisation to effectively adopt emerging technologies and contemporary systems of foodgrain management.

A proportion of the MoU targets has been linked to the performance of FCI’s depots through the Depot Darpan Portal, a web-based platform for assessing depot infrastructure and operational efficiency.

Outcome- and target-based benchmarks have been incorporated to strengthen physical infrastructure, improve operational performance and promote continuous improvement across FCI depots.

FCI plays a pivotal role in maintaining the country’s food security by undertaking procurement, storage, movement and distribution of foodgrains on behalf of Central government.

Due to large scale of public resources involved in its operations, efficient utilisation of food subsidy and continuous improvement in operational processes remain key priorities, the statement noted.

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