Food Ministry signs pact with FCI; sets target for procurement, better mgmt of subsidy

New Delhi: The Food Ministry has signed a pact with state-owned FCI for the current fiscal, setting measurable targets to improve foodgrains procurement and distribution operations for optimal management of subsidy.

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According to an official statement on Tuesday, the Department of Food and Public Distribution and the Food Corporation of India signed a Memorandum of Understanding (MoU) for the 2025-26 fiscal.

This MoU reflects the government's commitment to leveraging technology and systems-based approaches to ensure that food subsidy funds are managed optimally.

"It aims to address key areas such as minimising storage losses, achieving optimum utilisation of storage capacity, strengthening quality control measures, adopting the latest innovations in Information Technology (IT), digitising processes and monitoring, and enhancing the performance of logistics and the supply chain...," it said.

The MoU includes measurable targets on these aspects, along with capacity-building goals for FCI employees.

FCI was set up in 1965 under an Act of Parliament called the Food Corporations Act, 1964 (Act No. 37 of 1964) with the primary duty to undertake the purchase, storage, movement/ transport, distribution and sale of foodgrains.

The Centre is providing 5 kg of foodgrains free of cost to more than 80 crore people under the National Food Security Act.

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