Food Corporation of India will get Rs 5,000 crore boost from the centre

Food Corporation of India will get Rs 5,000 crore boost from the centre over the next two years. The decision of the government is a crucial one because it will accelerate the state run food giant’s procurement operations and relieve it from the looming liquidity problem.

Being government’s nodal agency for procurement and distribution of food grains all over the nation, FCI was facing liquidity problems, which affected it efficiency in procurement process. FCI will also receive Rs 32,000 crore through government bonds, says a Parliamentary panel report.

FCI was established to purchase, store, transport, distribute, and sale food grains on a national scale. The government assigned FCI to purchase food grains at a fixed price and distribute it among the states for dispensing it through the public distribution system, which is derailed in many states because of pure administration and new policies of the governments.