FCI – Food Corporation of India
Food Corporation of India is one of India’s largest organizations that deals with purchase, sale and distribution of foodgrains across the country. This government organization was set up on 14 January 1965 under the Food Corporations Act, 1964. The organization is headquartered in New Delhi.
The main motto behind the establishment of FCI is to ensure proper distribution of foodgrains across the country, providing effective pricing to farmers and maintaining sufficient quantity of food stock across the nation. It proved to be a win-win decision for farmers as well as for the country.
FCI is the largest largest supply chain management in Asia and second largest in the world.
The key products of the organization are: Wheat and Rice.
How does FCI works:
Each year FCI purchases wheat and rice from the farmers at the rates decided by the Government of India. This rate is called the Minimum Support Price (MSP). After procurement, the stocks are distributed to the state government authorities at the rate decided by the Govt. of India, for further distribution.
There is no fixed quantity to purchase in terms of the volume. Every year, Food Corporation of India purchases roughly 20 percent of total wheat output and 15 percent of total rice output of the country.