India increases authorised capital of FCI from ₹10,000 crore to ₹21,000 crore

FCI resorts to cash credit, short-term loans, ways and means, etc. to match the gap in the fund requirement. The increase in the authorized capital will reduce the interest burden, decrease the economic cost, and ultimately affect the government subsidy positively, it said.

With this infusion of capital, the FCI should 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, it added.

The Centre provides equity to the FCI for working capital requirements and creation of capital assets. The FCI is undertaking a comprehensive initiative to create an integrated IT system, leveraging existing internal and external systems.

Through the e-office implementation, FCI is making efforts towards a paperless office culture.

These initiatives of integrated IT solutions serving as the core operational software for FCI, should provide a single source of information and streamline functions with a common digital backbone.

According to the ministry, the FCI has taken several steps to enhance its efficiency including construction of cement roads, roof maintenance, illumination, and weighbridge upgradation.

Besides, it has also purchased lab equipment and developed a software platform for quality checking.

The government's dual commitment to MSP-based procurement and investment in FCI's operational capabilities signifies a collaborative effort towards empowering farmers, fortifying the agricultural sector, and ensuring food security for the nation, it said.