The increase in authorised capital is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively
In a landmark decision aimed at bolstering the agricultural sector and ensuring the welfare of farmers nationwide, the Government of India (GoI) has announced an increase in the authorised capital of the Food Corporation of India (FCI) from Rs 10,000 Crore to Rs 21,000 Crore. This strategic move shows the government’s steadfast commitment to supporting farmers and fortifying India’s agrarian economy.
FCI, as the pillar of India’s food security architecture, plays a pivotal role in various crucial functions, including the procurement of food grains at Minimum Support Price (MSP), maintenance of strategic food grain stocks, distribution to state governments and Union Territories (UTs), and stabilisation of food grain prices in the market.
The increase in authorised capital is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively. To match the gap of fund requirement FCI resorts to Cash Credit, Short Term Loan, Ways & Means etc. An increase of Authorised capital and further infusion will reduce the interest burden, reducing the economic cost and ultimately affecting the subsidy of GOI positively. With this infusion of capital, FCI shall also embark upon modernising its storage facilities, improving transportation networks, and adopting advanced technologies. These measures are essential not only for reducing post-harvest losses but also for ensuring the efficient distribution of food grains to consumers.
GoI provides equity to FCI for working capital requirements and the creation of capital assets. FCI is undertaking a comprehensive initiative to create an Integrated IT system, leveraging existing internal systems (FAP, HRMS) and external systems (State procurement portals, CWC/SWC). The E-office implementation has already made FCI a less paper organisation. These initiatives of integrated IT solutions serving as the core operational software for FCI, shall provide a single source of information and streamline functions with a common digital backbone.