The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an equity infusion of Rs 10,700 crore for the Food Corporation of India (FCI) for the fiscal year 2024-25.
This capital boost aims to enhance FCI's financial health, bolster its operational capacity, and reduce its dependence on short-term borrowings, reflecting the government’s ongoing commitment to agricultural welfare and food security.
The FCI, a key institution in ensuring national food security, plays a crucial role in procuring food grains at Minimum Support Price (MSP), maintaining stock levels, and distributing grains across the country. Since its establishment in 1964 with an authorized capital of Rs 100 crore and initial equity of Rs 4 crore, FCI has experienced substantial growth, reaching an equity base of Rs 10,157 crore by the 2023-24 fiscal year.
The latest infusion will build on this foundation, equipping FCI with the resources to manage food procurement and distribution more effectively.
This strategic investment is expected to reinforce FCI’s financial stability, providing the organisation with the liquidity needed for efficient food procurement and management. Additionally, it is anticipated to ease the government's subsidy burden while supporting FCI in meeting its goals for national food security.
