Indian Economy News

DFPD and FCI Sign MoU for FY27 to Strengthen Efficiency, Technology and Accountability in Foodgrain Management

The Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) have signed a Memorandum of Understanding (MoU) for FY27 to strengthen operational efficiency, accountability and technology adoption in India’s foodgrain management system. The MoU establishes a comprehensive performance framework with defined and measurable targets for FCI, focusing on reducing storage losses, optimising the utilisation of storage capacity, improving logistics and supply chain management and strengthening quality control mechanisms. The agreement also emphasises greater digitisation of business processes and the adoption of modern information technology solutions to improve transparency, monitoring and overall operational efficiency. Capacity-building and skill-development initiatives for FCI employees will further support the adoption of emerging technologies and contemporary foodgrain management systems.

The performance-based framework introduces an outcome-oriented approach by linking FCI’s operations to clearly defined annual parameters and benchmarks. A proportion of the targets has 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. The framework incorporates outcome- and target-based benchmarks aimed at strengthening physical infrastructure, improving operational performance and promoting continuous improvement across FCI depots. Established in 1965, FCI plays a key role in India’s food security architecture through the procurement, storage, movement and distribution of foodgrains on behalf of the Government of India. The MoU reflects continued efforts to modernise foodgrain management, improve the efficient utilisation of public resources and strengthen the resilience of India’s food security system. The initiative is also expected to promote the cost-effective and transparent utilisation of food subsidy resources while improving the efficiency and accountability of foodgrain operations across the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.