New Delhi [India], September 13 : The Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) have signed a Memorandum of Understanding (MoU) for the fiscal year 2024-25 to improve the efficiency and accountability of food grain procurement and distribution.
According to the Ministry of Consumer Affairs, Food and Public Distribution, the MoU details specific performance benchmarks and accountability measures designed to optimise public fund utilisation in food security operations.
These benchmarks include evaluating FCI Depots on criteria such as capacity utilisation, operational losses, security measures, and the modernization and automation of depot processes.
The MoU represents the Central Government's dedication to improving the Public Distribution System (PDS) and ensuring the efficient management of food subsidy funds through enhanced performance of FCI operations and its depots.
Established in 1965 under the Food Corporations Act, 1964, FCI is responsible for the purchase, storage, transport, distribution, and sale of food grains.
Operating on a public service mandate from the Department of Food and Public Distribution (DFPD), FCI has no independent revenue sources and is entirely funded by food subsidies from the Government of India (GOI).
Given the significant public expenditure involved, it is essential to evaluate its cost-effectiveness and value for money. This includes benchmarking performance on key operational parameters and ensuring institutional accountability.
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