The Union Cabinet has approved an investment of Rs 10,700 crore as operating capital for the Food Corporation of India (FCI) in fiscal year 2024-25. This strategic change intends to improve FCI’s operating skills and help it fulfil its mandate more effectively. During a recent Cabinet briefing, Union Minister of Information and Broadcasting Ashwini Vaishnaw stated that this infusion would significantly improve the FCI’s ability to maintain food security through grain procurement, welfare distribution, and market price stabilisation.
The minister further stated that food subsidies to farmers have increased drastically over the last decade, more than quadrupling from Rs 5,15,000 crore in 2004-2014 to Rs 21,56,000 crore from 2014-2024. This infusion will alleviate FCI’s financial load, cutting its interest rate on short-term borrowings and, ultimately, reducing government subsidies.
In addition to supporting the FCI, the Cabinet approved the PM-Vidyalaxmi plan, which aims to provide financial aid to deserving students seeking further education. Under this program, students enrolled in Quality Higher Education Institutions (QHEIs) will be eligible for collateral-free, guarantor-free loans to cover tuition and other educational expenditures, ensuring that financial limitations do not prevent access to quality education.
