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The Department of Food & Public Distribution and the Food Corporation of India signed a Memorandum of Understanding for FY 2026-27 in New Delhi.
The MoU sets a performance framework with defined annual targets on storage losses, storage capacity utilisation, logistics and supply chain, and quality control.
A proportion of the targets is linked to depot performance measured through the Depot Darpan Portal, a web platform assessing depot infrastructure and operational efficiency.
It also covers digitisation of business processes, adoption of modern IT solutions, and capacity building and skill development for FCI employees.
FCI was established in 1965 under the Food Corporations Act, 1964 and handles procurement, storage, movement and distribution of foodgrains for the Government of India.
Converts subsidised foodgrain from a welfare measure into a legal entitlement.
Key: Covers up to 75% of the rural and 50% of the urban population — about two-thirds of India — through the Targeted Public Distribution System, and the grain FCI procures and stores is what fulfils this entitlement.
Let states procure, store and distribute foodgrains themselves on behalf of the Centre.
Key: Introduced in 1997-98; it cuts the transport and storage burden on FCI by keeping grain closer to where it is grown and consumed.
Sell surplus wheat and rice from central stocks in the open market to moderate prices.
Key: FCI auctions grain to traders and processors when open-market prices rise, cooling retail prices without touching PDS entitlements.
Prescribe the minimum foodgrain stocks the Centre must hold at the start of each quarter.
Key: Stocks above the operational requirement for TPDS and other welfare schemes form the buffer; the norms are periodically reviewed, the last major revision being in January 2015.
The statute under which the Food Corporation of India was set up in 1965; FCI is therefore a statutory corporation, not a company registered under the Companies Act.
Creates the legal entitlement to subsidised foodgrain that FCI's procurement and storage operations are designed to meet.
Procures foodgrain at MSP, maintains buffer stocks, moves grain across states and issues it for the PDS and welfare schemes.
Administers the PDS, food subsidy, sugar and edible oil policy, and oversees FCI; one of the two departments of the Ministry of Consumer Affairs, Food & Public Distribution.
GS Paper 2 > Governance > Public Distribution System, Buffer Stocks and Food Security
General Awareness > Indian Economy and Institutions
With reference to the provisions made under the National Food Security Act, 2013, consider the following statements: 1. The families coming under the category of 'below poverty line (BPL)' only are eligible to receive subsidised food grains. 2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card. 3. Pregnant women and lactating mothers are entitled to a 'take-home ration' of 1600 calories per day during pregnancy and for six months thereafter. Which of the statements given above is/are correct?
Answer: 2 only
In the context of food and nutritional security of India, enhancing the 'Seed Replacement Rates' of various crops helps in achieving the food production targets of the future. But what is/are the constraint/constraints in its wider/greater implementation? 1. There is no National Seeds Policy in place. 2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops. 3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops. Select the correct answer using the code given below.
Answer: 3 only
FCI's web-based platform for assessing depot infrastructure and operational efficiency; part of the FY 2026-27 MoU targets are tied to it.
Foodgrain held above the operational requirement for the PDS and welfare schemes, kept as a reserve against shortfall and price shocks.
An arrangement from 1997-98 under which states procure, store and distribute grain themselves on the Centre's behalf.