Government Infuses Rs 10,700 Crore into FCI to Empower Farmers and Boost Agriculture

The Indian government has approved an infusion of Rs 10,700 crore in equity for the state-owned Food Corporation of India (FCI) to enhance its working capital. This move aims to bolster the agricultural sector, empower farmers, and ensure national food security by supporting FCI's procurement and distribution efforts.

In a significant economic development, the Indian government has announced an equity infusion of Rs 10,700 crore into the Food Corporation of India (FCI), aimed at strengthening the country's agrarian economy. This decision was approved by the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, with a view to supporting the agricultural sector and bolstering farmer welfare nationwide.

Established in 1964, the FCI has seen its operations expand considerably over the years. Initially starting with an authorised capital of Rs 100 crore, it has grown to an authorised capital of Rs 21,000 crore as of February 2023. The equity increase is expected to financially fortify FCI, enabling it to decrease reliance on short-term borrowing and lessen the government's subsidy burden.

This strategic infusion not only reinforces the government's commitment to procurement at Minimum Support Price but also aims to enhance FCI's capacity to maintain strategic food stocks and stabilize market prices. By reducing interest burdens through this equity infusion, the government seeks to ensure a robust framework for food security and further empower the agricultural sector's growth.

(With inputs from agencies.)