Food Ministry, FCI Ink Pact on Grain Procurement & Subsidy Management

24-Sep-2025 08:38 PM

New Delhi. The Union Ministry of Food and the Food Corporation of India (FCI) have signed an agreement for the financial year 2025-26, focusing on improving food grain management and maximizing subsidy utilization.

This includes minimizing food grain losses during storage, enhancing quality control, and adopting new developments in information technology.

This mutually agreed agreement also includes setting food grain procurement targets that will ensure better operations.

It also includes capacity building for the Corporation's personnel and supporting the distribution of food grains to over 800 million beneficiaries across the country under the National Food Security Act.

The Food Corporation of India procures large quantities of paddy (rice) and wheat from farmers each year and is responsible for its transportation, storage, handling, and distribution.

According to an official statement, the Department of Food and Public Distribution and the Food Corporation of India have signed a mutual agreement, valid for the current financial year 2025-26.

The Food Ministry aims to minimize losses during storage, handling, and transportation of food grains, and to utilize the latest technology and advanced technologies at every stage. Emphasis will also be placed on the efficient use of food subsidy funds.

It is noteworthy that during the first five months of the current financial year (April-August 2025), the Food Corporation of India lost 32,000 tons of grain in transit, worth ₹114 crore (approximately 0.17 percent of the total 18.9 million tons of government food grains transported across the country during that period.

During the same period of the previous financial year 2024-25, approximately 73,000 tons of grain worth ₹236 crore (approximately ₹236 crore) was wasted. This needs to be stopped.