Govt releases record Rs 1.07 lakh cr to FCI

Government has released funds to the tune of Rs 1.07 lakh crore to cash-strapped FCI so far this fiscal, which is an all time record.
State-run Food Corporation of India (FCI's)subsidy arrears were estimated to reach Rs 40,000 crore at the end of this fiscal.
"Government has already released a food subsidy of Rs 87,000 crore to FCI till date during this fiscal and a ways and means advance of Rs 20,000 crore, totalling to a funding of Rs 1,07,000 crore, which is an all time record," the Food Ministry said in a statement.
The Government also provided Rs 10,000 crore to FCI this month. With this, it has sufficient funds to meet its requirements towards expenditure including operations of paddy procurement in January and February, it added.

In the current fiscal, the government had allocated Rs 97,000 crore as subsidy to the FCI against the estimated bill of Rs 1,18,000 crore.
FCI has a cash credit limit of Rs 54,495 crore with a consortium of 67 banks at a rate of 10.51 per cent. In addition, it can raise a short-term loan of up to Rs 30,000 crore by inviting tenders from the banks.

The bulk of the food subsidy is paid to the FCI for running the public distribution system (PDS). The PDS operation cost has risen sharply in the past few years due to increase in the minimum support prices (MSP) of grains as well as high storage costs.

Meanwhile, the Ministry also said there is huge increase in procurement of paddy in the current Kharif Marketing Season, beginning October 1.
The total quantity of paddy procured in terms of rice till date is 208.10 lakh tonnes, which was only 157.41 lakh tonnes in the corresponding period of the previous season, the statement added.
At the start of this month, 126.89 lakh tonnes of rice was in stock under Central Pool, which is 50.79 lakh tonnes more than stocking norms. This excess quantity of rice will help in meeting any contingencies arising due to monsoon deficit or natural calamities in near future.