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.
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.
- 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
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.
- 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.