Government Signs MoU with FCI for Enhanced Foodgrain Efficiency

The food ministry has entered into an agreement with the Food Corporation of India for the fiscal year 2024-25. This move aims to increase efficiency and accountability in foodgrain procurement and distribution. The MoU sets specific performance benchmarks and accountability measures to optimise the use of public funds in food security operations.

The food ministry has entered into an agreement with the Food Corporation of India (FCI) for the fiscal year 2024-25, aiming to boost efficiency and accountability in foodgrain procurement and distribution.

The Memorandum of Understanding (MoU) establishes performance benchmarks for FCI depots and outlines accountability measures to enhance the use of public funds in food security operations.

According to the ministry, ''Depot efficiency parameters like capacity utilization, operational losses, security measures, and process modernisation are part of the performance benchmarking.''

This initiative signifies the government's commitment to refining the Public Distribution System (PDS) and improving the management of food subsidy funds through better FCI operations.

Founded in 1965, FCI is responsible for the purchase, storage, transport, distribution, and sale of foodgrains, relying entirely on central government subsidies without independent income.

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

(With inputs from agencies.)