New Delhi
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday has approved a Rs 10,700 crore equity infusion for the Food Corporation of India (FCI) to meet its working capital requirements for the fiscal year 2024-25. This move is aimed at bolstering the agricultural sector and ensuring the welfare of farmers across the country.
The FCI, established in 1964, is responsible for the procurement and distribution of food grains. This infusion is expected to enhance FCI’s financial strength, reduce its reliance on short-term borrowings, and lower the government’s subsidy burden. The FCI has been instrumental in ensuring food security through Minimum Support Price (MSP) procurement, maintaining strategic food stocks, and stabilizing market prices.
This decision highlights the government’s continued focus on supporting farmers and strengthening India’s agricultural economy. Since 1964, FCI’s capital has grown significantly from an initial Rs 4 crore to Rs 10,157 crore in 2023-24, with the new equity infusion marking a key step in its financial transformation.
