{"id":31819,"date":"2024-11-07T18:06:46","date_gmt":"2024-11-07T12:36:46","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=31819"},"modified":"2024-11-07T18:06:48","modified_gmt":"2024-11-07T12:36:48","slug":"equity-infusion-for-food-corporation-of-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/07-11-2024\/equity-infusion-for-food-corporation-of-india","title":{"rendered":"Equity Infusion For Food Corporation of India"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Cabinet Committee on Economic Affairs (CCEA) has approved an infusion of <strong>equity of Rs.10,700 crore<\/strong> for working capital in <strong>FY 2024-25<\/strong> in Food Corporation of India (FCI).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Food Corporation of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Food Corporation of India<\/strong> was set up under the <strong>Food Corporations Act 1964, <\/strong>with authorized capital of Rs. 100 Crores and equity of Rs. 4 Crores.<\/li>\n\n\n\n<li><strong>Objectives<\/strong> of the FCI;\n<ul class=\"wp-block-list\">\n<li><strong>Effective price support<\/strong> operations for safeguarding the interests of the farmers.<\/li>\n\n\n\n<li><strong>Distribution of foodgrains<\/strong> throughout the country for a public distribution system.<\/li>\n\n\n\n<li><strong>Strategic food grain stocks:<\/strong> Maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure National Food Security.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges with FCI<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Storage Issues: <\/strong>Insufficient facilities lead to wastage.<\/li>\n\n\n\n<li><strong>High Costs: <\/strong>Expensive procurement, storage, and distribution.<\/li>\n\n\n\n<li><strong>Inefficiencies: <\/strong>Delays, corruption, and leakage in supply chains.<\/li>\n\n\n\n<li><strong>Limited Crop Focus:<\/strong> Over-focus on rice and wheat impacts crop diversity.<\/li>\n\n\n\n<li><strong>Financial Strain: <\/strong>Heavy subsidies create fiscal pressure.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Measures to Boost Effectiveness of FCI<\/strong><\/h2>\n\n\n\n<p>The Standing Committee on Food, Consumer Affairs, and Public Distribution recommended:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Decentralized Procurement:<\/strong> Encourage more states to adopt the Decentralized Procurement Scheme to reduce transportation costs and improve local distribution.\u00a0<\/li>\n\n\n\n<li><strong>Infrastructure Development: <\/strong>Assist state governments in creating adequate infrastructure for effective procurement and storage of food grains.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Utilization of Storage Capacity:<\/strong> Maximize the use of FCI-owned storage facilities before resorting to hiring additional storage to minimize costs.\u00a0<\/li>\n\n\n\n<li><strong>Construction of Godowns<\/strong>: Expedite the construction of godowns, especially in northeastern states, Jammu and Kashmir, Andaman and Nicobar Islands, and Lakshadweep, to enhance storage capacity.\u00a0<\/li>\n\n\n\n<li><strong>Performance Evaluation: <\/strong>Conduct regular performance evaluations of the Decentralized Procurement Scheme to identify and address challenges.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Ways and Means Advance (WMA)\u00a0<\/strong><br>&#8211; The equity has been infused by converting the Ways and Means Advance into equity.\u00a0A Ways and Means Advance (WMA) is a temporary loan given by the government to the FCI to meet mismatches in government receipts and payments.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=2071130\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Cabinet Committee on Economic Affairs (CCEA) has approved an infusion of equity of Rs.10,700 crore for working capital in FY 2024-25 in Food Corporation of India (FCI).<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31819","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=31819"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31819\/revisions"}],"predecessor-version":[{"id":31820,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31819\/revisions\/31820"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=31819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=31819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=31819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}