#Cabinet approves infusion of equity of Rs.10,700 crore for working capital in financial year 2024-25 in Food Corporation of India (FCI)
This is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively#CabinetDecisions— Dhirendra Ojha (@DG_PIB) November 6, 2024
This decision aims to support the agricultural sector by enhancing FCI’s operational and financial strength, reflecting the government’s commitment to empowering farmers and reinforcing India’s agrarian economy.
Founded in 1964 with an initial authorised capital of ₹100 crore, FCI’s capital base has expanded significantly over the decades to support its growing operations. In February 2023, the authorised capital was increased from ₹11,000 crore to ₹21,000 crore.
Also Read: India increases authorised capital of FCI from ₹10,000 crore to ₹21,000 crore
Over recent years, FCI’s equity rose from ₹4,496 crore in FY 2019-20 to ₹10,157 crore in FY 2023-24. The additional infusion of ₹10,700 crore will not only support FCI’s current operations but also reduce its reliance on short-term borrowings, effectively lowering its interest burden and reducing the subsidy requirement from the government.
As a crucial player in India’s food security framework, FCI procures food grains at Minimum Support Prices (MSP), maintains strategic reserves, and distributes grains for welfare programs, stabilising market prices. This infusion strengthens FCI’s ability to carry out these functions, enabling it to meet its food security mandate more effectively.
Through increased support for MSP-based procurement and FCI’s operational capabilities, the government underscores its dedication to farmer welfare and food security across the nation.
Also Read: Government to sell FCI rice to be marketed under Bharat brand, pricing undecided
First Published: Nov 6, 2024 3:34 PM IST
About The Author
