The Government of India (GoI) has announced an increase in the authorized capital of the Food Corporation of India (FCI) from Rs 10,000 Crore to Rs 21,000 Crore in a significant move intended to support the agricultural sector and guarantee the welfare of farmers across the country. This strategic move demonstrates the government's unwavering commitment to supporting farmers and fortifying India's agrarian economy.
Strengthening FCI's Operational Capabilities
As the backbone of India's food security framework, FCI is essential to the execution of several critical tasks, such as obtaining food grains at the Minimum Support Price (MSP), preserving strategic food grain reserves, supplying state governments and Union Territories (UTs) with food grains, and regulating food grain prices in the market.
An important step in improving FCI's operational ability to successfully carry out its mandate is the rise of permitted capital. FCI frequently uses Cash Credit, Short Term Loans, Ways & Means, etc. to close the funding gap. Increased allowed capital and additional infusion will lower borrowing rates, which will lower economic costs and have a beneficial impact on the GOI subsidy. With this new funding, FCI plans to upgrade its transportation systems, modernize its storage facilities, and implement cutting-edge technology. These steps are essential for guaranteeing the effective distribution of food grains to customers as well as for lowering post-harvest losses.
Embracing Technological Advancements for Efficiency
The GoI provides equity to FCI for its working capital requirements and the creation of capital assets. FCI is working with external systems (State procurement portals, CWC/SWC) and internal systems (FAP, HRMS) to establish an integrated IT system through a comprehensive program. The implementation of the E-office has already transformed FCI into a less paper organization. These integrated IT solutions, serving as the core operational software for FCI, will 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 enhance 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. With farmers at its core, India hopes that its agricultural industry will have a more robust and prosperous future as these reforms take hold.
