Govt paid Rs 1,51,000 crore to FCI to to run the foodgrain procurement, storage and distribution operations
Pune, July 26, 2019 : Department of Food & Public Distribution fully bears the cost to run the foodgrain procurement, storage and distribution operations of Food Corporation of India (FCI). The Department has provided Rs.1,40,098 crore as subsidy to Food Corporation of India for Financial Year 2018-19. This includes National Small Savings Fund (NSSF) loan of Rs.70,000 crore. The budget provision of food subsidy for FCI for FY 2019-20 is Rs.1,51,000.00 crore.
In addition to this fund, the working capital requirement of FCI is financed through a mix of debt and equity. The debt comprises National Small Savings Fund (NSSF) loans and Ways and Means Advance, both provided by Government of India, Cash Credit Limit (CCL) facilities from consortium of banks backed by Government of India guarantee and long term Government guaranteed bonds. In addition, FCI is also availing unsecured Short Term Loans (STL) from scheduled banks to tide over cash flow mismatch.
This information was given in a written reply by the Minister of State for Consumer Affairs, Food & Public Distribution, Shri Danve Raosaheb Dadarao in the Rajya Sabha today.
