Day 26
Agriculture & FoodSkim2024-11-06
Cabinet Approves Rs 10,700 Crore Equity Infusion for FCI
What Happened
The Cabinet Committee on Economic Affairs approved an equity infusion of Rs 10,700 crore into the Food Corporation of India (FCI) for FY 2024-25. This move converts 'Ways and Means Advance' into equity to provide permanent working capital. It aims to reduce FCI's dependence on expensive short-term market borrowings.
Why It Matters
This restructuring lowers the national food subsidy burden by reducing interest costs while strengthening India's food security through more efficient MSP procurement and buffer stock management.
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