FCI may raise Rs 15,000-cr short-term loan this fiscal

The Food Corporation of India (FCI) may raise around Rs 15,000 crore through short term loans in the current fiscal to bridge the gap between food subsidy allocated and actual expenses in handling and distribution of grains under free ration scheme.

Sources told FE that as a cabinet nod for the increasing authorised capital of the FCI to Rs 21,000 crore from the Rs 10,000 crore is yet to be received, the corporation may seek short term loans to finance its activities of procurement and distribution of foodgrains to states.

As per the revised estimates for 2023-24, out of the total allocation of Rs 2.11 trillion under the food subsidy expenses, Rs 1.39 trillion is routed through FCI. Sources said that so far the finance ministry has allocated Rs 1.25 trillion under the food subsidy expenses to FCI.

An additional expenses of around Rs 11,000 crore by FCI is projected in the next couple of weeks.

In the first half of the current fiscal, FCI had availed short-term loans of Rs 6940 crore, which has been paid back.