Food Procurement System Improvement: FCI & Food Dept. Ink MoU

New Delhi, Sep 13 (PTI) The Department of Food and Public Distribution and the Food Corporation of India (FCI) on Friday signed an MoU for this fiscal to further improve the system of procurement and distribution of food grains.

The department and FCI have signed a "Memorandum of Understanding (MoU) for FY 2024-25...to enhance the efficiency and accountability of food grain procurement and distribution", an official statement said.

The MoU outlines specific performance benchmarks (including performance benchmarking of FCI Depots) and accountability measures aimed at optimising the use of public funds in managing food security operations.

Performance benchmarking of FCI Depots contains depot efficiency parameters like capacity utilisation, operational losses, security measures, modernisation and automation of processes at depots etc.

"The MoU is an initiative, which reflects the Centre Government's commitment to refine the Public Distribution System (PDS) and to ensure that food subsidy funds are managed with the highest level of efficiency by way of overall enhancement in the performance of FCI operations and its depots," the statement said.

FCI was set up in 1965 under 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 corporation serves a public service mandate on behalf of the Department of Food and Public Distribution. It does not have any income source and its public service mandate is financed completely through the food subsidy released by the Centre.