DFPD and FCI Forge MoU to Enhance Food Grain Distribution for FY 2024-25

The DFPD and FCI have signed an MoU to boost efficiency and accountability in food grain procurement and distribution for FY 2024-25. The MoU outlines performance benchmarks to optimize public fund utilization in food security operations, underscoring the government's commitment to improving the Public Distribution System.

The Department of Food and Public Distribution (DFPD) and the Food Corporation of India (FCI) have formalized an agreement aimed at enhancing the efficiency and accountability of food grain procurement and distribution for the fiscal year 2024-25. This Memorandum of Understanding (MoU) specifies performance benchmarks and accountability measures meant to optimize the utilization of public funds in food security operations, according to the Ministry of Consumer Affairs, Food and Public Distribution.

The MoU includes detailed criteria for evaluating FCI Depots, covering aspects such as capacity utilization, operational losses, security measures, and the modernization of depot processes through automation. This move signifies the Central Government's commitment to refining the Public Distribution System (PDS) and ensuring that food subsidy funds are managed more effectively through improved FCI operations.

FCI, established under the Food Corporations Act of 1964, has been responsible since 1965 for the purchase, storage, transport, distribution, and sale of food grains. Operating under the public service mandate from DFPD, FCI does not generate independent revenues and relies wholly on food subsidies from the Government of India. Given the significant public expenditure involved, evaluating its cost-effectiveness and value for money through key operational benchmarks and institutional accountability is crucial. (ANI)

(With inputs from agencies.)