Cabinet approves increase in Food Corporation of India authorised capital

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News: The Union Cabinet has approved to increase the authorised capital of the Food Corporation of India (FCI) to ₹10,000 crore from the current ₹3,500 crore. The operations of FCI require maintaining perpetual stock of food grains which needs to be funded by Govt. of India through equity or long term loan.

Facts:

About Food Corporation of India (FCI)

  • Food Corporation of India is a statutory body constituted under the Food Corporations Act, 1964, to implement the food policy of Government of India.
  • The primary purpose of Food Corporation of India (FCI) include the purchase, storage, movement, transport, distribution and sale of food grains and other foodstuff.

Objectives:

  • To ensure Minimum Support Price to farmers
  • To maintain buffer stocks of food grains and distribution of food grains under National Food Security Act (2013) and other welfare schemes of Govt. of India.
  • To intervene in market for price stabilization

Additional Information:

National Food Security Act, 2013

  • Government of India enacted National Food Security Act (NFSA) in 2013. The nodal agency for implementation of the Act is Ministry of Consumer Affairs, Food & Public Distribution.
  •  Objective: To provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity of quality food at affordable prices. 

Key features:

  • It gives legal entitlement to 67% of the population (75% in rural areas and 50% in urban areas) to receive highly subsidized food grains.
  • Under the Act, food grain is allocated @ 5 kg per person per month for priority households category and @ 35 kg per family per month for Antyodaya Anna Yojana  (AAY) families at a subsidized prices of Rs. 1/- Rs. 2/- and Rs. 3/- per kg for nutri-cereals, wheat and rice respectively.
  • Pregnant women and lactating mothers are entitled to a nutritious “take home ration” of 600 Calories and a maternity benefit of at least Rs 6,000 for six months.