GUWAHATI: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has sanctioned an infusion of ₹ 10,700 crore in equity for the Food Corporation of India (FCI) for the financial year 2024-25. This strategic decision aims to strengthen the agricultural sector and support the welfare of farmers across the country.
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Since its establishment in 1964, FCI has seen considerable growth, beginning with an authorised capital of ₹ 100 crore and an equity base of just ₹ 4 crore. Over the years, the corporation's operations have expanded significantly, leading to an increase in its authorised capital to ₹ 21,000 crore in February 2024. In the 2019-20 financial year, FCI’s equity stood at ₹ 4,496 crore, which grew to ₹ 10,157 crore by the end of the 2023-24 fiscal year.
The latest infusion of ₹ 10,700 crore will not only strengthen FCI’s financial position but will also provide a substantial boost to its ongoing transformation efforts. FCI plays a crucial role in maintaining food security by procuring food grains at the Minimum Support Price (MSP), storing strategic reserves, distributing food grains for welfare purposes, and stabilising food prices in the market.
The equity infusion is expected to improve FCI's operational capacity and reduce its reliance on short-term borrowings, which will in turn lower the interest burden and reduce the subsidy burden on the government.
This initiative reflects the government's continued commitment to supporting MSP-based procurement and reinforcing FCI’s operational capabilities, thus empowering farmers and fortifying India’s agrarian economy while ensuring national food security.
