Centre Hikes FCI's Authorised Capital To Rs 21,000 Crore

As per the Ministry of Consumer Affairs, Food and Public Distribution, this more than twofold increase in authorised capital is a significant stride towards enhancing FCI's operational capabilities

The government has announced a substantial twofold increase in the authorised capital of the Food Corporation of India (FCI) from Rs 10,000 crore to Rs 21,000 crore, marking a significant move to fortify the agricultural sector and support farmers. FCI plays a pivotal role in the nation's food security system, encompassing various functions such as procuring food grains at Minimum Support Price (MSP), managing strategic food grain reserves, distributing to state governments and Union Territories (UTs), and stabilising food grain prices in the market.

According to the Ministry of Consumer Affairs, Food and Public Distribution statement on Saturday, this more than twofold increase in authorised capital is a significant stride towards enhancing FCI's operational capabilities to fulfil its mandate effectively.

To address the funding gap, FCI utilises cash credit, short-term loans, and ways and means advances. Increasing the authorised capital and further capital infusion will help alleviate the interest burden, thereby reducing the economic cost and ultimately lowering the government subsidy.

With this capital infusion, FCI will also undertake initiatives to modernise its storage facilities, enhance transportation networks, and adopt advanced technologies. These measures are crucial not only for minimising post-harvest losses but also for ensuring the efficient distribution of food grains to consumers, as per the ministry's statement.

The government furnishes equity to FCI to meet its working capital needs and construct capital assets. FCI is currently executing a comprehensive endeavour to establish an Integrated IT system, capitalising on both internal systems (FAP, HRMS) and external systems (State procurement portals, CWC/SWC). The implementation of E-office has already transformed FCI into a paperless organisation. These initiatives of integrated IT solutions, functioning as the central operational software for FCI, will furnish a unified source of information and streamline operations with a shared digital infrastructure.

The ministry's statement said that the government's dual commitment to MSP-based procurement and investment in FCI's operational capabilities reflects a concerted effort to empower farmers, strengthen the agricultural sector, and safeguard food security for the nation.