Cabinet approves Rs 10,700 crore equity infusion in FCI to cope with increased operations-OxBig News Network

The Union Cabinet on Wednesday approved increasing the equity capital of Food Corporation of India (FCI) by Rs 10,700 crore. The decision was taken keeping in mind the fact that there has been an increase in the scale of operations owing to steady rise in MSP and procurements made by the state-owned entity, Information and Broadcasting Minister Ashwini Vaishnaw said.

The equity infusion has been done for the current financial year (2024-25) and the decision is aimed at bolstering the agricultural sector and ensuring the welfare of farmers nationwide.

“This strategic move shows the government’s steadfast commitment to supporting farmers and fortifying India’s agrarian economy,” Vaishnaw added.

He further said that it is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively.

FCI resorts to short term borrowings to match the gap of fund requirement. This infusion will help to lower the interest burden and will ultimately reduce subsidy of the government.

The government’s dual commitment to MSP-based procurement and investment in FCI’s operational capabilities signifies a collaborative effort towards empowering farmers, the minister added.