June 22, 2024
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India Increases Authorised Capital of FCI From ₹10,000 Crore to ₹21,000 Crore

The government has raised the authorized capital of the Food Corporation of India (FCI) from ₹10,000 crore to ₹21,000 crore to bolster its operational abilities and meet its objectives more effectively, as stated by the Food Ministry. FCI, serving as the primary agency for food grain procurement at minimum support prices (MSP) to safeguard farmers’ interests, also manages strategic stocks and allocates grains for various welfare programs.

The ministry emphasized that the increase in authorized capital is a significant move aimed at strengthening FCI’s operational capabilities. This enhancement is expected to alleviate the reliance on short-term loans and other financial instruments, thereby reducing interest expenses and positively impacting government subsidies.

In addition to capital infusion, the FCI is urged to modernize its storage facilities, enhance transportation networks, and embrace advanced technologies to minimize post-harvest losses and ensure efficient distribution of food grains.

The government provides equity to FCI for its operational and asset creation needs. FCI is actively implementing an integrated IT system to achieve a paperless office culture and streamline operations. These IT solutions are envisioned to serve as a central operational platform, providing comprehensive information and optimizing functions.

The ministry highlighted FCI’s efforts in improving efficiency, such as infrastructure upgrades and investments in quality testing equipment and software platforms. The government’s commitment to MSP-based procurement and investment in FCI’s capabilities is seen as a joint endeavor to support farmers, strengthen the agricultural sector, and uphold national food security.

Picture Courtesy: Google/images are subject to copyright

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