New Delhi: The government has approved a Rs 10,700 crore equity infusion in the Food Corporation of India (FCI) for FY25, the Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi announced on Wednesday.
Union Minister Ashwini Vaishnaw stated, Cabinet approves infusion of equity of Rs 10,700 crore for working capital in the financial year 2024-25 in Food Corporation of India (FCI).
Todays Cabinet decision on the infusion of equity of Rs. 10,700 crore in the Food Corporation of India will enhance its capacity to manage food procurement and distribution efficiently. It will also ensure better support for farmers and contribute to national food security.
Narendra Modi (@narendramodi) November 6, 2024
He underscored that FCIs operations have expanded over the past decade due to increased Minimum Support Price (MSP) levels and food grain procurement.
This capital injection is intended to strengthen FCIs operational capabilities and reduce its dependence on short-term borrowing, lowering its interest costs and the governments subsidy burden.
FCIs core responsibilities involve procuring food grains at MSP, maintaining strategic reserves, and distributing supplies for welfare programs and price stability, which supports national food security.
Established in 1964 with an initial equity of Rs 4 crore and an authorised capital of Rs 100 crore, FCI has since grown substantially.
In February 2023, its authorised capital was raised to Rs 21,000 crore, with equity reaching Rs 10,157 crore in FY24.
This new infusion of Rs 10,700 crore marks a significant boost, enhancing FCIs capacity to meet National Food Security Act goals and bridging regional food supply gaps by transferring grains from surplus to deficit areas.
