Boosting India's Food Security: Government Infuses Rs 10,700 Crore into FCI

The Indian government has approved an equity infusion of Rs 10,700 crore into the Food Corporation of India to bolster its working capital. This move aims to strengthen FCI's procurement and distribution capabilities, support farmers, and enhance national food security.

The Indian government has sanctioned an equity infusion of Rs 10,700 crore into the Food Corporation of India (FCI) for its working capital needs in the fiscal year 2024-25. This decision, approved by the Cabinet Committee on Economic Affairs, was notably chaired by Prime Minister Narendra Modi.

The infusion aims to bolster the agricultural sector by enhancing FCI's capacity to secure and distribute foodgrains efficiently. This strategic move reaffirms the government's unwavering support for farmers and its commitment to strengthening the agrarian economy, ultimately contributing to national food security.

Established in 1964 with a modest capital, FCI's operations have seen exponential growth. With this significant capital boost, FCI is set to improve its operational capabilities, reduce reliance on short-term borrowings, and mitigate interest burdens, thereby aiding in reducing government subsidies.

(With inputs from agencies.)