Cabinet Committee approved to increase the authorized capital of Food Corporation of India (FCI) to Rs.10,000 crore from Rs.3,500 crore. With the increase of authorized capital, additional equity capital can be infused in FCI through union budget, to fund the food grains stock, perpetually held by FCI. This will reduce the borrowings of FCI, save interest cost of FCI and reduce food subsidy in consequence.
Daily Current Affairs Quiz 2019
FCI was constituted under the Food Corporations Act, 1964, to implement the food policy of Government of India. Its primary objective is to ensure minimum support price to farmers, maintain buffer stock of food grains and distribution of food grains under National Food Security Act and other welfare schemes of the centre.
