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FCI Reforms: 5 Point Reform Agenda for FCI


FCI Reforms: Relevance

  • GS 2: Statutory, regulatory and various quasi-judicial bodies.


FCI Reforms: Context

  • Recently, on the occasion of the 58th Foundation Day of Food Corporation of India (FCI), Minister for Consumer Affairs, Food and Public Distribution gave 5 Sutras to better FCI’s progress.


5 points reform agenda for FCI

  • Change the public perception of FCI from being inefficient & corrupt to dynamic, inclusive & honest.
  • Focus on integrating end-to-end tech solutions right from procurement to delivery to achieve operational efficiency & leakage free,  distribution   –  reduce   PDS   response   time, beneficiary tracking etc.
  • Establish a grievance redressal mechanism to react rapidly to farmer/Farmer Producer Organisation in distress. Reaching out to farmers through “Jan Jagrukta” programmes at grass-root level to spread awareness.
  • Plan for modern infrastructure & logistics. Upgrade warehouses to international standards. Improve storage capacity for the growing need- Power backup, CCTV, robust network facility.
  • Global best practices to make India a ‘Food hub’.


FCI Reforms: 5 Point Reform Agenda for FCI_40.1


About FCI

  • The Food Corporation of India was setup under the Food Corporation’s Act 1964.
  • Food policy objectives:
    • Effective price support operations for safeguarding the interests of the farmers.
    • Distribution of food grains throughout the country for public distribution system.
    • Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National Food Security.
  • FCI’s Objectives:
    • To provide farmers remunerative prices
    • To make food grains available at reasonable prices, particularly to vulnerable section of the society
    • To maintain buffer stocks as measure of Food Security
    • To intervene in market for price stabilization
  • Since its inception, FCI has played a significant role in India’s success in transforming the crisis management-oriented food security into a stable security system.
  • FCI is the main central agency for execution of food policies of the government.
  • FCI has come a long way in realizing the dream of India being a self-sufficient nation.


FCI Reforms: 5 Point Reform Agenda for FCI_50.1


FCI report card

  • FCI procures nearly 1,300 LMT of wheat & paddy annually against nearly 13 LMT procured during 1965.
  • Similarly, distribution across the country has increased from about 18LMT in 1965 to nearly 600 LMT.
  • Even the storage capacity from 6 LMT in 1965 has increased to over 800 LMT.


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