The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved infusion of equity of Rs 10,700 crore for working capital in financial year 2024-25 in Food Corporation of India (FCI), to further boost the agricultural sector and ensure the welfare of farmers nationwide. This strategic move shows the Government’s steadfast commitment to supporting farmers and fortifying India’s agrarian economy, the government said in a statement.
FCI plays major role in food procurement at MSP, stock maintenance, distribution and national food security.
The grains stock-piler has seen substantial financial growth since its inception in 1964, when it began with an authorized capital of Rs 100 crore and equity of Rs 4 crore. By the financial year 2023-24, its equity had grown to Rs 10,157 crore.
As per the government, this move is set to bolster FCI’s financial stability, enhance its operational capabilities, reduce its reliance on short-term borrowings, and lower the government’s subsidy burden.
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