Centre approves Rs 10,700 crore equity infusion in FCI to strengthen agricultural sector
The equity held by FCI, which stood at Rs 4,496 crore in 2019-20, reached Rs 10,157 crore in 2023-24.
Centre approves Rs 10,700 crore equity infusion in FCI to strengthen agricultural sector
The Cabinet Committee on Economic Affairs (CCEA) has approved an equity infusion of Rs 10,700 crore for the Food Corporation of India (FCI) to meet its working capital requirements for the financial year 2024-25. Established in 1964 with an initial authorized capital of Rs 100 crore, FCI has significantly expanded its operations over the years. To support this growth, the organization’s authorized capital was increased from Rs 11,000 crore to Rs 21,000 crore in February 2023.
The equity held by FCI, which stood at Rs 4,496 crore in 2019-20, reached Rs 10,157 crore in 2023-24. The latest infusion of Rs 10,700 crore is expected to fortify FCI’s financial position, supporting initiatives aimed at its transformation and operational efficiency.
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The additional equity is anticipated to enhance FCI’s operational capabilities, reducing its reliance on short-term borrowing and lowering its interest expenses, which in turn will reduce the subsidy burden on the government. FCI plays a critical role in ensuring food security by procuring food grains at the Minimum Support Price (MSP), maintaining strategic reserves, and distributing food grains under welfare schemes, while also stabilizing market prices.
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