Food ministry inks pact with FCI to boost grain operation efficiency

New Delhi: The food ministry has signed an agreement with the state-run Food Corporation of India (FCI) for the 2024-25 fiscal year, aiming to enhance efficiency and accountability in foodgrain procurement and distribution.

The MoU (Memorandum of Understanding) sets specific performance benchmarks, including metrics for FCI depots, and outlines accountability measures to optimise public fund usage in food security operations.

"Depot efficiency parameters like capacity utilization, operational losses, security measures, and modernisation of processes are part of the performance benchmarking," the ministry said in a statement.

This initiative underscores the government's commitment to refining the Public Distribution System (PDS) and ensuring efficient management of food subsidy funds through improved FCI operations.

Established in 1965, FCI handles the purchase, storage, transport, distribution, and sale of foodgrains. It relies entirely on central government food subsidies, having no independent income source.

"Such large public expenditure must be evaluated for cost-effectiveness and value for money. This requires benchmarking critical operational parameters and establishing institutional accountability," the ministry added.