Food Corporation of India will get 10,700 crore rupees in new equity from the government.
This is an important step in improving FCI’s operating capability.
The burden of interest will be lessened with this infusion, which will ultimately lessen the government’s need for subsidies.
The growth in the Minimum Support Price (MSP) and the acquisition of food grains over the past ten years has led to an expansion in the scope of FCI operations.
Food grain purchase, storage and preservation, transportation, and distribution throughout the nation are among FCI’s primary responsibilities.
With an approved capital of Rs 100 crore and equity of Rs 4 crore, FCI began operations in 1964.
As a result of its businesses’ substantial growth over time, its allowed capital increased to Rs 21,000 crore in February 2023.
In FY24, FCI’s equity amounted to Rs 10,157 crore.
