The government has increased the authorised capital of the state-run Food Corporation of India (FCI) from₹ 10,000 crore to ₹21,000 crore to enhance the operational capabilities and fulfill its mandate effectively, the Food Ministry said on Saturday.
What is FCI?
FCI is the central government’s nodal agency that undertakes the procurement of food grains at a minimum support price (MSP) to protect the interest of farmers. It also maintains strategic stocks and distributes the grains under different welfare schemes.
“The increase in authorized capital is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively,” the ministry said in a statement.
FCI resorts to cash credit, short-term loans, ways and means, etc. to match the gap in the fund requirement. The increase in the authorized capital will reduce the interest burden, decrease the economic cost, and ultimately affect the government subsidy positively, it said.
With this infusion of capital, the FCI should also embark upon modernizing its storage facilities, improving transportation networks, and adopting advanced technologies.
These measures are essential not only for reducing post-harvest losses but also for ensuring efficient distribution of food grains to consumers, it added.
Equity to the FCI
The Centre provides equity to the FCI for working capital requirements and creation of capital assets. The FCI is undertaking a comprehensive initiative to create an integrated IT system, leveraging existing internal and external systems.
Through the e-office implementation, FCI is making efforts towards a paperless office culture.
These initiatives of integrated IT solutions serving as the core operational software for FCI, should provide a single source of information and streamline functions with a common digital backbone.
According to the ministry
According to the ministry, the FCI has taken several steps to enhance its efficiency including construction of cement roads, roof maintenance, illumination, and weighbridge upgradation.
Besides, it has also purchased lab equipment and developed a software platform for quality checking.
The government’s dual commitment to MSP-based procurement and investment in FCI’s operational capabilities signifies a collaborative effort towards empowering farmers, fortifying the agricultural sector, and ensuring food security for the nation, it said.
