New Delhi, Feb 19 (KNN) The Government of India (GoI) has announced an increase in the authorised capital of the Food Corporation of India (FCI) from Rs 10,000 Crore to Rs 21,000 Crore to bolster the agricultural sector ensuring the welfare of farmers nationwide.

This strategic move demonstrates the government's steadfast commitment to supporting farmers and fortifying India's agrarian economy.

The increase in authorised capital is a significant step towards enhancing the operational capabilities of FCI in fulfilling its mandate effectively.

To match the fund requirement gap, FCI often resorts to Cash Credit, Short Term Loan, Ways & Means, etc.

Increasing the authorised capital and further infusion will reduce the interest burden, lowering the economic cost and ultimately positively affecting the subsidy of GOI.

With this infusion of capital, FCI shall also embark upon modernising 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.

The Government of India provides equity to FCI for working capital requirements and for the creation of capital assets.

FCI is undertaking a comprehensive initiative to create an Integrated IT system, leveraging existing internal systems (FAP, HRMS) and external systems (State procurement portals, CWC/SWC).

The E-office implementation has already made FCI a less paper organisation.

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

As part of enhancing its efficiency, FCI is diligently executing tasks such as cement roads, roof maintenance, illumination, and weighbridge upgrades, enhancing food security.

The purchase of lab equipment and the development of software platforms for QC labs aim to improve quality checking.

Studies on “Out-Turn Ratio,” “Shelf-Life,” and “Pest Management for Fortified Rice” complement FCI's commitment to building an efficient food security management system.

The integration of automated digital equipment further aligns with FCI's objectives, aiming to remove human intervention for a transparent procurement mechanism and enhancing infrastructure for employees, saving on rent and creating assets for FCI.

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.

As these measures take root, India anticipates a more resilient and prosperous future for its agricultural sector, with farmers at its heart.

Recognising the critical role of FCI in maintaining food security, the Government of India periodically specifies the strategic level of food grain stocks to be maintained by FCI and designated central pool (DCP) states.

(KNN Bureau)