Government of India Boosts Food Corporation of India’s Capital to Rs 21,000 Crore for Agricultural Sector Reinforcement

New Delhi:  In a groundbreaking decision aimed at fortifying India’s agricultural sector, the Government of India (GoI) has approved a substantial increase in the authorized capital of the Food Corporation of India (FCI) from Rs 10,000 Crore to Rs 21,000 Crore. This strategic move underscores the government’s unwavering commitment to supporting farmers and strengthening the foundation of India’s agrarian economy.

As the keystone of India’s food security architecture, FCI plays a pivotal role in critical functions such as procuring food grains at Minimum Support Price (MSP), maintaining strategic food grain stocks, distributing to state governments and Union Territories (UTs), and stabilizing food grain prices in the market.

The increase in authorized capital signifies a crucial step towards enhancing FCI’s operational capabilities, reducing interest burdens, and positively impacting the government’s subsidy. FCI plans to utilize the additional capital for modernizing storage facilities, improving transportation networks, and adopting advanced technologies. These measures are essential to reduce post-harvest losses and ensure efficient distribution of food grains to consumers.

The infusion of capital will not only enhance FCI’s efficiency but also facilitate the modernization of storage facilities and the adoption of advanced technologies. FCI aims to leverage integrated IT solutions, creating a seamless digital backbone for its operations. The implementation of E-office has already made FCI a less paper-dependent organization, contributing to a more efficient workflow.

FCI is also focusing on infrastructure development, including cement roads, roof maintenance, illumination, and weighbridge upgrades. Purchase of lab equipment and software platform development for QC labs will enhance the quality checking process. FCI is committed to studies on “Out-Turn Ratio,” “Shelf-Life,” and “Pest Management for Fortified Rice,” aligning with its commitment to building an efficient food security management system.

The Government of India’s dual commitment to MSP-based procurement and investment in FCI’s operational capabilities signifies a collaborative effort to empower farmers, fortify the agricultural sector, and ensure food security for the nation. These measures are anticipated to pave the way for a more resilient and prosperous future for India’s agricultural sector, with farmers at the core of the nation’s growth.

Recognizing the critical role of FCI in maintaining food security, the Government of India periodically specifies the strategic level of food grain stocks to be maintained by FCI and designated central pool (DCP) states. FCI diligently adheres to these norms, ensuring the nation’s resilience to potential food-related challenges.