New Delhi: Realizing the importance of purchasing crops from farmers and public distribution, the central government has decided to make FCI financially strong. For this, an equity of Rs 10,700 crore will be invested in FCI.

FCI plays an important role in ensuring food security of 140 crore people of the country. Along with purchasing grains from farmers at minimum support price (MSP), its storage and price control, it also manages the distribution of food grains under welfare schemes.

After the Union Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnav said that FCI has a key role in the foodgrain procurement process. There has been a big increase in the procurement of foodgrains and MSP in the last decade. The aim of this decision is to boost the agriculture sector and ensure the welfare of farmers.

Ashwini Vaishnav said that if we compare the ten years of NDA government with the ten years of 2014-2024, then food subsidy has increased four times. Between 2004 and 2014, only Rs 5 lakh 15 thousand crore food subsidy was given to farmers, which has increased to Rs 21 lakh 56 thousand crore during the last decade.

Buffer stock has a big role in providing free ration to 80 crore people for the next five years. If we look at the buffer stock of the last five years, the average has been 80 thousand crore rupees. This year on March 31, the stock was worth 98 thousand crore 230 crore rupees. FCI's journey started in 1964 with an authorized capital of just 100 crore rupees and equity of four crore rupees.

Gradually, with efficiency, its need in the agricultural sector also increased, as a result of which its authorized capital increased from Rs 11 thousand crore to Rs 21 thousand crore in February 2023. Its equity was Rs 4,496 crore in the financial year 2019-20, which increased to Rs 10,157 crore in the year 2023-24. Now the Center has approved equity of Rs 10,700 crore for FCI, which will empower it financially and promote transformation initiatives.

The equity infusion is an important step towards increasing the operational capacity of FCI. This will enable it to fulfil its responsibilities effectively. To meet the shortage of funds, FCI has to resort to short-term borrowing. This infusion will help it in reducing its interest burden and ultimately reduce the subsidy of the Central Government.