Cabinet okays equity infusion of Rs 10K crore to strengthen FCI

The Cabinet on Wednesday approved increasing the equity capital of the Food Corporation of India (FCI) by Rs 10,700 crore. The decision was taken keeping in mind the fact that there has been an increase in scale of its operations owing to a steady rise in the MSP and procurement made by the state-owned entity, Information and Broadcasting Minister Ashwini Vaishnaw informed mediapersons after the Cabinet briefing. The equity infusion has been done for the current financial year (2024-25) and the decision is aimed at bolstering the agricultural sector and ensuring the welfare of farmers nationwide. "This strategic move shows the government's steadfast commitment to supporting farmers and fortifying India's agrarian economy," Vaishnaw said.

He further said it was a significant step towards enhancing the operational capabilities of the FCI in fulfilling its mandate effectively.

The FCI resorts to short term borrowings to match the gap of fund requirement. This infusion will help to lower the interest burden and will ultimately reduce the subsidy bill of the Centre. The government's dual commitment to MSP-based procurement and investment in FCI's operational capabilities signifies a collaborative effort towards empowering farmers, the minister added.