FCI authorized capital increased to Rs 21,000 crore

Besides procuring food grains at MSP, FCI is even responsible for maintaining food stocks and distributing the grains under different welfare systems.

The Union food ministry announced on February 17 that the authorized capital for the Food Corporation of India (FCI) has been raised from Rs 10,000 crore to Rs 21,000 crore. FCI serves as the nodal agency responsible for procuring food grains at minimum support price (MSP) for farmers.

Enhancing Operational Capabilities

The increase in authorized capital aims to enhance FCI’s operational capabilities, allowing the agency to effectively fulfill its mandate. In addition to procuring food grains, FCI also manages food stocks and distributes grains under various welfare schemes.

Impact on Fund Management

FCI typically utilizes cash credit, short-term loans, and other means to bridge the gap in fund requirements. The increase in authorized capital is expected to reduce the interest burden, lower economic costs, and positively impact government subsidies.

Modernization and Technological Adoption

With the infusion of capital, FCI is encouraged to modernize storage facilities, improve transportation networks, and adopt advanced technologies. These measures are crucial for reducing post-harvest losses and ensuring efficient distribution of food grains.

Integrated IT Solutions

FCI is undertaking initiatives to create an integrated IT system, leveraging existing internal and external systems. Implementation of e-office aims to establish a paperless office culture and streamline functions with a common digital backbone.

Efficiency Enhancement Measures

FCI has implemented various efficiency enhancement measures, including construction of cement roads, roof maintenance, illumination, and weighbridge upgradation. These efforts contribute to improving overall operational efficiency and effectiveness.

The increase in authorized capital, coupled with modernization initiatives and technological advancements, reflects the government’s commitment to strengthening FCI’s capabilities in fulfilling its crucial role in India’s food security ecosystem.