Government approves ₹10,700 Crore infusion for FCI

The Union Cabinet has sanctioned ₹10,700 crore for the Food Corporation of India (FCI) to enhance its working capital, ease borrowing costs, and support its food security operations.

The Union Cabinet has approved a significant equity infusion of ₹10,700 crore for the Food Corporation of India (FCI) for the fiscal year 2024-25, aiming to boost its working capital. Union Minister Ashwini Vaishnaw highlighted that this funding will bolster FCI’s operational capabilities, allowing it to more effectively execute its mandate of ensuring food security by purchasing food grains at the Minimum Support Price (MSP), managing strategic reserves, and stabilizing market prices. The minister noted that food subsidies for farmers have seen a substantial increase, with the amount rising from ₹5.15 lakh crore during 2004-2014 to ₹21.56 lakh crore in 2014-2024.

The Cabinet Committee on Economic Affairs emphasized that this measure is aligned with the government’s commitment to enhancing India’s agrarian economy and supporting the welfare of farmers nationwide. FCI, which often relies on short-term borrowing to meet funding gaps, will benefit from this infusion by lowering its interest burden, which is expected to reduce the government’s subsidy obligations.

Additionally, Vaishnaw announced the approval of the PM-Vidyalaxmi scheme to provide financial assistance to deserving students for higher education. “The Cabinet has approved the PM-Vidyalaxmi scheme to provide financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education,” he stated. Under this scheme, students admitted to Quality Higher Education Institutions (QHEIs) will be eligible for collateral-free, guarantor-free loans from banks and financial institutions to cover tuition fees and related expenses.