The Department of Food & Public Distribution (DFPD) and the Food Corporation of India (FCI) have signed a Memorandum of Understanding (MoU) for 2026-27 aimed at improving operational efficiency, strengthening accountability and accelerating the modernisation of the country’s foodgrain management system.
The MoU establishes a comprehensive, performance-based framework for FCI, with clearly defined annual targets covering storage, logistics, quality control, technology adoption and resource utilisation.
A key focus of the agreement is to reduce storage losses and ensure optimal utilisation of storage capacity. It also seeks to improve logistics and supply-chain management while strengthening quality-control mechanisms across FCI’s operations.
The framework places significant emphasis on digitisation of business processes and adoption of modern information technology solutions. These measures are intended to improve transparency, operational efficiency and real-time monitoring of the corporation’s activities.
The MoU also provides for capacity building and skill development of FCI employees. The initiatives are expected to help the organisation adopt emerging technologies and modern systems for foodgrain procurement, storage, movement and distribution.
Established in 1965 under the Food Corporations Act, 1964, FCI plays a critical role in India’s food security architecture. It undertakes procurement, storage, transportation and distribution of foodgrains on behalf of the government. Given the substantial public resources involved, efficient utilisation of food subsidy and continuous improvement in operations remain key priorities.
An important component of the new framework links a portion of MoU targets to the performance of FCI depots through the Depot Darpan Portal, a web-based platform designed to assess depot infrastructure and operational efficiency.
Outcome- and target-based benchmarks under the agreement will focus on strengthening physical infrastructure, improving depot-level performance and promoting continuous operational improvement.
The MoU reflects the government’s broader effort to build a more efficient, transparent and technology-driven foodgrain management system. By linking performance with measurable outcomes, the framework is expected to promote better utilisation of public resources and strengthen the resilience of India’s food security system.