Govt pumps Rs 10k cr into FCI to help with working capital needs | India News – Times of India

NEW DELHI: The Cabinet on Wednesday approved an equity infusion of Rs 10,700 crore Food Society of India (FCI) for working capital requirements during the current financial year, which will reduce the interest burden by about Rs 800 crore annually and thereby reduce the government’s subsidy expenditure.
The decision is aimed at strengthening the agriculture sector and ensuring the welfare of farmers across the country, the government said. “This strategic step demonstrates the government’s steadfast commitment to supporting farmers and strengthening India’s agricultural economy,” it added.
FCI started its journey in 1964 with an authorized capital of Rs 100 crore and equity of Rs 4 crore. Its operations increased the number, resulting in an increase in authorized capital from Rs 11,000 crore to Rs 21,000 crore by February 2023. “Now, the government has approved a significant equity amount of Rs 10,700 crore for FCI, which will help it financially and will give a major impetus to the initiatives taken for its transformation,” the official statement said.
The Ministry of Food said the infusion of equity is an important step towards enhancing FCI’s operational capabilities in effectively fulfilling its mandate. “FCI is resorting to short-term borrowing to fill the funding gap. This injection will help reduce interest costs and reduce government subsidies,” the government said.