The Cabinet Committee on Economic Affairs (CCEA) has sanctioned an equity infusion of ₹10,700 crore for the Food Corporation of India (FCI) to address working capital needs for the financial year 2024-25.
Founded in 1964 with an initial authorized capital of ₹100 crore, FCI has expanded its operations significantly over the decades. To accommodate this growth, the organization’s authorized capital was increased from ₹11,000 crore to ₹21,000 crore in February 2023.
The equity held by FCI, which stood at ₹4,496 crore in 2019-20, reached ₹10,157 crore in 2023-24. The latest infusion of ₹10,700 crore is expected to fortify FCI’s financial position, supporting initiatives aimed at its transformation and operational efficiency.
FCI plays a critical role in ensuring food security by procuring food grains at the Minimum Support Price (MSP), maintaining strategic reserves, and distributing food grains under welfare schemes, while also stabilizing market prices.
The additional equity is anticipated to enhance FCI’s operational capabilities, reducing its reliance on short-term borrowing and lowering its interest expenses, which in turn will reduce the subsidy burden on the government.