Food Corporation of India (FCI) Part- II

The Food Corporation of India was set up under the Food Corporations Act 1964, in order to fulfil the following objectives of the Food Policy:

  • Effective price support operations for safeguarding the interests of the farmers.
  • Distribution of food grains throughout the country for the public distribution system.
  • Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security.

In the previous blog, we discussed the FCI procurement and logistic (movement) process, and other factors that impact the movement of grains, import and export, etc.

In this blog, we will further discuss FCI policies & systems on Industrial Relations-Labour, its Integrated Information System for Foodgrains Management (IISFM), the structure of the vigilance department, and more. 

Industrial Relations-Labour


  • The handling operations of food grain bags are carried out by deploying labour under various systems adopted by the FCI.  
  • The following is the statistical break-up of the number of depots having different types of labour systems.

December 2019

Information Technology


  • The challenge FCI faces today is to evolve into a modern, efficient and lean organization which continues to fulfil the mandate given to it for ensuring Food Security for the Nation.
  • The scale of operations of FCI has expanded immensely with the increase in the quantity of food grains procured, stored and transported to meet the requirements of TPDS and Other Welfare Schemes.  
  • With the Food Security Act, there is going to be added pressure on FCI to meet increased demand and thus efficiency in operations becomes a critical factor for the organization.
  • In order to improve efficiency in the operations of an organization of the scale and size of FCI, IT can play a critical role in all aspects of its operations.  
  • Over several years, FCI has implemented several IT initiatives which have contributed to improving the operational efficiency of FCI.  
  • These include an Integrated Information System for Foodgrains Management (IISFM) which is deployed in all depots and gives stock position and receipt and the issue of food grains from all depots on a daily basis.  
  • The Financial Accounting Package (FAP), implemented across Headquarters, 5 Zonal Offices, all Regional Offices and all District Offices, has ensured automation and integration of finance, treasury, inventory, purchase and payroll functions.  
  • Through this system, more than 5 lakh vouchers are processed on a monthly basis.



The Food Corporation of India was set up under the Food Corporation Act 1964, in order to fulfil the following objectives of the Food Policy:

  • Effective price support operations for safeguarding the interests of the farmers.
  • Distribution of food grains throughout the country for public distribution system
  • Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security
  • 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. 
  • Operations of Food Corporation of India, hereinafter, referred to as FCI, revolve mainly around the procurement of food grains at Minimum Support Price declared by Government of India, scientific storage of food grains, movement of food grains from production areas to consumption areas for fulfilling given mandate, quality control in procurement functions and quality assurance in respect of food grains to be issued under Public Distribution System and other welfare schemes and also under schemes of Open Market Sales of food grains for domestic consumption as well as for exports.
  •  In addition, there are other operations too, to support the core operations of FCI; namely, Engineering, Finance & Accounts, Legal Division, Internal Audit, Industrial Relations.
  • Primary responsibility for maintenance of purity, integrity and efficiency in FCI vests in the Chairman & Managing Director (CMD) of FCI who is the Head and Chief Executive of the Corporation. 
  • The CMD, however, is assisted by an officer called the Chief Vigilance Officer (CVO) in the discharge of vigilance functions. 
  • The CVO acts as a special assistant /advisor to the CMD and reports directly to him in all matters relating to vigilance. 
  • He heads the Vigilance Division of the organization concerned and provides a link between is organization and the Central Vigilance Commissioner and his organization and the Central Bureau of Investigation. 
  • In FCI the CVO has also been designated as Executive Director (Vigilance).

Vigilance Division Of FCI

  • Vigilance Division of FCI is headed by Chief Vigilance Officer who is assisted by a team of officers of various ranks. 
  • The offices of FCI at Zonal and Regional level too have vigilance set up headed by officers of suitable rank which assist the Zonal Executive Directors and General Managers, as the case may be.

Personnel Overview

Personnel Division

  • The Personnel Division of FCI, Headquarters is broadly categorized in four parts viz. Personnel Establishment (P.E.), Policy & Industrial Relations (P&IR), Headquarters Section and Institute of Food Security (IFS) which is headed by the Executive Director (Personnel).  
  • These four parts are further divided into the following sections:
  1. Personnel Establishment:
a. Establishment-I(E.I)
  • All Establishment matters of Category-I officers on All India basis and all Establishment matters of Category-II officers on the rolls of Headquarters including posting and transfers.
b. Zonal Establishment (Z.E.)
  • Establishment matters of Category II, III & IV employees posted in various zones which come under the jurisdiction of Headquarters or require the intervention of Headquarters such as  Administrative Appeals, Inter-Zonal/Permanent Transfers etc.
c. Recruitment, Promotion & Integration(RPI)
  • Recruitment of Category-I & monitoring/coordination of recruitment of Category-II & III posts, promotions from Category-II to Category-I and within Category-I and seniority lists of Category-I and All India Integrated Seniority lists of Category-II.
d. Confidential Report Cell(CR)
  • Maintenance and communication of Annual Performance Appraisal Reports (APARs) of all Category-I officers and APARs of Category-II officers working in Headquarters.
e. Training
  • Organises training programmes for the employees of the Corporation with the reputed Institutes
f. Liaison Cell
  • Safeguards and monitors the interests of SC, ST, OBC, Ex-Servicemen, Minorities and People with Disabilities(PWD) employees and also redress their grievances
g. Pension Cell
  • Settlement & finalisation of Pension Cases of "Food Transferee", who have joined FCI from Food department during the initial years of the creation of the FCI.
  1. Policy & Industrial Relations:
a. Establishment Policy(EP)
  •  Framing  of Regulations, Establishment policy guidelines, instructions including amendment/ clarifications in  Service terms and conditions of employees  provided in the FCI (Staff) Regulations, 1971 and amendments
  • Policies are related to appointments,  recruitment, promotion, probation, seniority, transfers and tours, deputation, superannuation and retirement, voluntary retirement etc.
b. Organization Methods, Inspections and Staff Sanction(OMISS)
  • Organizational restructuring i.e. reorganization of offices, opening/closing of offices in the Corporation.  
  • Review of existing staffing norms and formulation of new staffing norms. 
  • Fixing staff sanctions for different Categories / Cadres / Offices of the Corporation and Maintenance of Zone-wise/Region-wise/All India Manpower Sanctioned Strength and Men In Position (MIP). Determination of working hours
c. Wage Revision Cell(WRC)
  • Negotiation with the recognized Staff Union(s) for revision of pay scales and allowances for unionized employees, Revision of Pay Scales and allowances both CDA and IDA for the executives, Framing of instructions on pay anomalies arising due to wage revision, Determination of Productivity linked Incentive for the employees, Providing of clarifications to field offices on HRA, CCA, DA and other wage-related issues.
d. Industrial Relations-Staff(IR-S)
  • All Industrial relation matters of staff like conducting Trade Union Elections, monitoring of industrial dispute cases, issue of authorization letters to the serving/retired employees for an empanelled hospital, welfare activities like organizing health camps, blood donation camps, collection of fund for Prime Minister Relief Fund during natural calamities, dealing with the matters relating to the prevention of sexual harassment of women at workplace.
  1. Headquarters
a. General Section
  • Maintenance of all the basic amenities in the Headquarters building.  Arrangements of staff cars, booking of Air tickets etc.
b. Establishment-II(E.II)
  • All establishment matters of Category-III & IV employees working in Headquarters including posting/transfers.
c. Estate & Property(E&P)
  •  All matters relating to Estate and Property owned /hired by the Corporation including lease matters
  1. Institute of Food Security(IFS):
  • The work of the aforesaid Section, in a nutshell, is given hereunder: 
  • The Institute of Food Security is situated at Gurgaon and provides Structured Induction training to Category-II officials, who are directly recruited as Management Trainee.  It also provides In-Service training to  Category-I, II & III

The topic covered in the blog pertains to UPSC papers on GS 3 Agriculture and Essay type questions. Don’t forget to subscribe so that you never miss out on such important and interesting topics. Check out our previous blogs on various topics here.

Blog Post written by:
Anurag Trivedi
UPSC Mentor