Union Cabinet Approves ₹10,700 Crore Equity Infusion for Food Corporation of India to Boost Agriculture Sector
Union Cabinet approves ₹10,700 crore equity infusion for Food Corporation of India (FCI) in FY 2024-25 to strengthen food security, boost agriculture, and support farmers. Learn more about this strategic move for India’s agrarian economy.
New Delhi: In a move to strengthen India's agricultural sector, the Union Cabinet, led by Prime Minister Narendra Modi, has approved an equity infusion of ₹10,700 crore for the Food Corporation of India (FCI) for the financial year 2024-25. This funding will serve as working capital to enhance FCI’s financial stability, operational efficiency, and commitment to national food security.
FCI, a key player in India’s food procurement, stock maintenance, and distribution under the Minimum Support Price (MSP) program, plays a vital role in securing the welfare of farmers and ensuring food security across the country. Established in 1964 with an authorized capital of ₹100 crore, FCI's equity has grown significantly, reaching ₹10,157 crore by FY 2023-24.
The equity infusion aims to reduce FCI’s dependence on short-term borrowings and lighten the government’s subsidy burden, while reinforcing its operational capacity to support India’s agricultural economy. The government emphasized that this strategic decision reflects its ongoing commitment to bolstering the agrarian sector and supporting the welfare of farmers nationwide.
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