Food Security Architecture
FCI and Decentralised Storage
The Food Corporation of India (FCI), established under the Food Corporations Act, 1964, is the central institution for procurement, storage, and distribution of food grains to support the Public Distribution System (PDS) under the National Food Security Act, 2013 (NFSA). FCI's centralised storage model has long been criticised for high carrying costs, excess stockholding beyond buffer norms, and inadequate coverage in remote areas. The Shanta Kumar Committee Report (2015) recommended decentralising food grain management — including greater use of cooperative-level storage — to reduce FCI's fiscal burden, currently borne through the food subsidy budget. The Grain Storage Plan through PACS operationalises this decentralisation recommendation.
- FCI: established under Food Corporations Act, 1964.
- NFSA, 2013: governs food entitlements; covers approximately 80 crore beneficiaries.
- Shanta Kumar Committee (2015): recommended decentralising FCI operations, reducing stockholding, and leveraging cooperative storage.
- Buffer stock norms: India maintains strategic reserves of food grain above consumption; FCI often holds far in excess of norms.
- Decentralised Procurement System: some states (e.g., Chhattisgarh, MP) already procure independently — PACS godowns extend this logic to the storage phase.
● Tracked since March 09, 2026 · last seen July 05, 2026 · updates as the daily brief publishes