Agriculture Sector to benefit from increase in authorized capital of Food Corporation of India from Rs 10,000 to 21,000 Crore
The target is to:
Enhance FCI's operational capabilities
Enable modernization of storage facilities
Improve transportation networks & lead to
adoption of advanced technologies
Reduce post-harvest losses & economic costs
Facilitate the efficient distribution of foodgrains
In a landmark decision aimed at bolstering the agricultural sector and
ensuring the welfare of farmers nationwide, the Government of India (GoI) has
announced an increase in the authorised capital of the Food Corporation of
India (FCI) from Rs 10,000 Crore to Rs 21,000 Crore. This strategic move shows
the government's steadfast commitment to supporting farmers and fortifying
India's agrarian economy.
FCI, as the pillar of India's food security architecture, plays a
pivotal role in various crucial functions, including the procurement of food
grains at Minimum Support Price (MSP), maintenance of strategic food grain
stocks, distribution to state governments and Union Territories (UTs), and
stabilisation of food grain prices in the market.
The increase in authorized capital is a significant step towards
enhancing the operational capabilities of FCI in fulfilling its mandate
effectively. To match the gap of fund requirement FCI resorts to Cash Credit,
Short Term Loan, Ways & Means etc. Increase of authorised capital and
further infusion will reduce the interest burden, reducing the economic cost
and ultimately affecting the subsidy of GOI positively. With this infusion of
capital, FCI shall also embark upon modernising its storage facilities,
improving transportation networks, and adopting advanced technologies. These measures
are essential not only for reducing post harvest losses but also for ensuring
efficient distribution of food grains to consumers.
GoI provides equity to FCI for working capital requirement and for
creation of capital assets. FCI is undertaking a comprehensive initiative to
create an Integrated IT system, leveraging existing internal systems (FAP,
HRMS) and external systems (State procurement portals, CWC/SWC). The E-office
implementation has already made FCI a less paper organization. These initiatives
of integrated IT solutions serving as the core operational software for FCI,
shall provide a single source of information and streamline functions with a
common digital backbone.
As a part of enhancing its efficiency, FCI is diligently executing tasks
such as cement roads, roof maintenance, illumination, and weighbridge upgrades,
enhancing food security. Purchase of lab equipment and the development of a
software platforms for QC labs aim to improve quality checking. Studies on
“Out-Turn Ratio”, “Shelf-Life”, and “Pest Management for Fortified Rice”
complement FCI's commitment to building an efficient and food security
management system. The integration of automated digital equipment further
aligns with FCI's objectives, aiming to remove human intervention for a
transparent procurement mechanism and enhance infrastructure for employees,
saving on rent and creating assets for FCI.
The government's dual commitment to MSP-based procurement and investment
in FCI's operational capabilities signifies a collaborative effort towards
empowering farmers, fortifying the agricultural sector, and ensuring food
security for the nation. As these measures take root, India anticipates a more
resilient and prosperous future for its agricultural sector, with farmers at
its heart.
The Government of India, recognizing the critical role of FCI in
maintaining food security, periodically specifies the strategic level of foodgrain
stocks to be maintained by FCI and designated central pool (DCP) states. FCI
diligently adheres to these norms to address any adverse situations that may
arise in the future, ensuring the nation's resilience to food-related
challenges.