The Food Corporation of India was setup under the Food Corporation Act 1964, in order to fulfill 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 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 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 assists the Zonal Executive Directors and General Managers, as the case may be.