The Government is looking to make India’s foodgrain storage and distribution system more efficient, technology-driven and accountable, with new performance targets set for the Food Corporation of India (FCI) for the financial year 2026–27.
The Department of Food & Public Distribution (DFPD) and FCI have signed a Memorandum of Understanding (MoU) in New Delhi, laying down specific targets for the organisation during FY27. The agreement focuses on improving the way foodgrains are stored, moved, monitored and distributed across the country.
One of the major priorities under the MoU is reducing storage losses. Since FCI handles large quantities of foodgrains, better storage practices and efficient use of available warehouse capacity can help reduce wastage and improve overall management.
The agreement also calls for better logistics and supply chain management, stronger quality control and optimum use of storage capacity. These measures are expected to make the movement of foodgrains more efficient while ensuring that grain quality is maintained during storage and distribution.
Technology will play an important role in this transformation. The MoU encourages greater digitisation of FCI’s business processes and the use of modern Information Technology systems. The aim is to improve transparency, monitoring and efficiency across operations.
At the same time, FCI employees will be provided with capacity-building and skill-development opportunities. This is intended to help the workforce adapt to new technologies and modern systems being introduced in foodgrain management.
FCI has been a central part of India’s food security system since its establishment in 1965 under the Food Corporations Act, 1964. It is responsible for the procurement, storage, movement and distribution of foodgrains on behalf of the Government of India.
Given the scale of these operations and the large amount of public money involved through the food subsidy system, improving efficiency and controlling costs remain important priorities.
The new MoU moves towards a more measurable approach by linking FCI’s performance to clearly defined annual targets. Instead of focusing only on activities undertaken, the framework will also look at actual outcomes and improvements achieved during the year.
FCI depots will also come under closer performance monitoring. Some of the targets under the agreement have been linked to the Depot Darpan Portal, a web-based platform used to assess the infrastructure and operational efficiency of FCI depots.
Through target-based benchmarks, the government aims to improve physical infrastructure, strengthen depot operations and encourage continuous improvement across the storage network.
The agreement is part of the Government’s wider effort to modernise India’s foodgrain management system and make the country’s food security network more efficient and resilient.
Better storage, reduced losses, improved logistics and greater use of digital technology can help FCI manage public foodgrain stocks more effectively. The performance-based system is also expected to bring greater accountability in the use of food subsidy resources.
Through the FY27 framework, DFPD and FCI aim to build a more transparent, cost-effective and modern foodgrain management system while ensuring that public resources are used efficiently.