Government has approved an investment of 10,700 crore rupees in the Food Corporation of India to strengthen the agriculture sector

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved an equity infusion of ₹10,700 crore in the Food Corporation of India (FCI) for the fiscal year 2024-25. This strategic decision is aimed at bolstering the agriculture sector and ensuring the welfare of farmers across the country. It reflects the government’s commitment to supporting farmers and strengthening India's agrarian economy.

Established in 1964 with an authorized capital of ₹100 crore and an initial equity of ₹4 crore, FCI has significantly expanded its operations over the decades. As a result, in 2023, the authorized capital was increased from ₹11,000 crore to ₹21,000 crore. The corporation’s equity rose from ₹4,496 crore in 2019-20 to ₹10,157 crore in 2023-24. Now, with the government’s approval of an additional ₹10,700 crore equity infusion, FCI will be further empowered financially, providing a substantial boost to its transformative initiatives.

FCI plays a critical role in ensuring food security by procuring food grains at the Minimum Support Price (MSP), maintaining strategic food reserves, distributing grains for welfare programs, and stabilizing food grain prices in the market.

This equity infusion is a vital step towards strengthening FCI’s operational capabilities, which will enhance its ability to fulfill its mandate effectively. Traditionally, FCI relies on short-term borrowing to address funding gaps; this equity infusion will help reduce the interest burden, ultimately lowering the government’s subsidy expenditure.
The government’s dedication to MSP-based procurement and investment in FCI’s operational efficiency signifies a united effort toward empowering farmers, supporting the agricultural sector, and ensuring food security for the nation.

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