Government Infuses Rs 10,700 Crore to Strengthen FCI, Introduces Education Scheme

The Union Cabinet approved a Rs 10,700 crore equity infusion for FCI to enhance agricultural welfare and farmer support. The government also introduced PM Vidyalaxmi, a financial aid scheme aiming to assist middle-class students with collateral-free, guarantor-free loans for higher education, targeting one lakh students annually.

In a significant move to boost the agricultural sector, the Union Cabinet has sanctioned an equity infusion of Rs 10,700 crore for the Food Corporation of India (FCI) for the fiscal year 2024-25. The decision, announced post the weekly Cabinet meeting, targets enhancing the welfare of farmers across the nation.

Since its inception in 1964 with an authorized capital of Rs 100 crore, the FCI has seen a substantial escalation in its operations. By February 2023, its authorized capital had expanded from Rs 11,000 crore to Rs 21,000 crore. With equity at Rs 10,157 crore by financial year 2023-24, the government's recent approval represents a substantial financial reinforcement for FCI's initiatives.

FCI's pivotal role includes procuring food grains at the Minimum Support Price, maintaining strategic stocks, and stabilizing market prices. The government's statement highlighted that this equity boost aims to enhance FCI's operational capabilities, reduce borrowing costs, and decrease government subsidies. Meanwhile, the Cabinet also announced PM Vidyalaxmi, a new scheme assisting middle-class students to pursue higher education, offering collateral-free loans with interest subvention based on family income.

(With inputs from agencies.)