Government Doubles Authorized Capital Of FCI From Rs 10,000 Crore To Rs 21,000 Crore
FCI, serving as the central government’s nodal agency, plays a pivotal role in procuring food grains at minimum support prices (MSP) to safeguard farmers' interests.
In a move aimed at enhancing operational capabilities and fulfilling its mandate effectively, the government has raised the authorized capital of the state-run Food Corporation of India (FCI) from Rs 10,000 crore to Rs 21,000 crore, announced the Food Ministry on Saturday.
FCI, serving as the central government’s nodal agency, plays a pivotal role in procuring food grains at minimum support prices (MSP) to safeguard farmers' interests. Additionally, it maintains strategic stocks and distributes grains under various welfare schemes.
"The increase in authorized capital is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively," stated the ministry.
The hike in authorized capital is expected to alleviate the financial burden on FCI, reducing interest expenses, and positively impacting government subsidies. Moreover, it will enable FCI to modernize its storage facilities, improve transportation networks, and adopt advanced technologies, thereby curbing post-harvest losses and ensuring efficient distribution of food grains to consumers.
The government extends equity to FCI for meeting its working capital requirements and for creating capital assets. FCI is currently engaged in a comprehensive initiative to develop an integrated IT system, aiming to establish a paperless office culture through e-office implementation.
Through integrated IT solutions, FCI seeks to streamline operations, provide a single source of information, and enhance efficiency. Additionally, FCI has undertaken various measures such as the construction of cement roads, roof maintenance, illumination, and weighbridge upgradation. It has also procured lab equipment and developed a software platform for quality checking.
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The government's commitment to MSP-based procurement and investment in FCI's operational capabilities reflects a collaborative approach to empower farmers, strengthen the agricultural sector, and ensure food security for the nation.
Overall, the increase in FCI's authorized capital signifies a significant step towards reinforcing its role as a crucial pillar in India's food security architecture and supporting the welfare of farmers and consumers alike.
