Question
What is the main purpose of the Government of
India's decision to increase the authorized capital of the Food Corporation of India (FCI)?Solution
The increase in authorized capital of FCI from Rs 10,000 Crore to Rs 21,000 Crore is aimed at enhancing the operational capabilities of FCI in fulfilling its mandate effectively, including procurement of food grains at Minimum Support Price (MSP), maintenance of strategic food grain stocks, and distribution to state governments and Union Territories (UTs). This move also aims to reduce the interest burden on FCI and ultimately positively affect the subsidy of the Government of India.
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