FCI saves Rs 749 cr in interest cost last fiscal

Food Corporation of India (FCI) has saved Rs 749 crore in interest cost in last fiscal through better debt management and also cut its losses towards storage and transit of wheat and rice, Food Minister Ram Vilas Paswan said today.
A delegation of FCI employees called on the minister to express gratitude for introduction of pension and post retirement medical schemes.
FCI is the government's nodal agency for procurement and distribution of foodgrains.
Paswan said the government has accepted the long pending demand of employees so that their families can lead dignified life post-retirement.
"FCI has made significant achievements in recent past. It's been able to save a significant amount by reducing its losses in storage, transit and demurrage," Paswan told reporters.

Highlighting the FCI's achievement, Food Ministry said in a statement that there has been saving in interest cost of Rs 808 crore in 2014-15 and Rs 749 crore in 2015-16 fiscal through sound debt management.

The storage losses of wheat and rice have come down from 0.17 per cent in 2013-14 to 0.15 per cent in 2015-16. The net saving on this account has been Rs 327 crore.
Similarly, transit losses of wheat and rice have also reduced from 0.46 per cent in 2013-14 to 0.38 per cent in 2015-16, resulting in saving of Rs 138 crore.
Saving of Rs 173 crore has been towards demurrage and wharfage in 2014-15 and 2015-16 as compared to 2013-14.

Moreover, FCI has recruited 5,200 Category III, 374 category II and 22 category I employees during 2015-16, the statement added.
FCI has increased its procurement of rice from eastern states. It has been able to smoothly implement food security law in 34 states/union territories.