FCI to embark upon modernizing its storage facilities
The Government has announced an increase in the authorized capital of the Food Corporation of India (FCI) to Rs.21,000 crore from Rs.10,000 crore for 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 stabilization of food grain prices in the market, Ministry of Consumer Affairs, Food & Public Distribution said on 17 Feb 2024.
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 Government positively, the Ministry said.
“With this infusion of capital, FCI shall also embark upon modernizing 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,” the Ministry said.
The Government 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.
The Government is recognizing the critical role of FCI in maintaining food security, periodically specifies the strategic level of food grain 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, the Ministry noted. Fiinews.com
