What is the Full Form of FCI| Physics Wallah

Full form of FCI

The Full form of FCI is the Food Corporation of India. It is the official body under the Ministry of Consumer Affairs, Food and Public Distribution.

It was established in 1965 following the Food Corporation Act, 1964, to implement various aspects of the National Food Policy at that time.

Overview of the Food Corporation of India

The Food Corporation of India is one of the largest companies established by the Indian government and is probably one of the most prominent executives in India. Its headquarters was located in Chennai, and it moved to New Delhi.

The FCI and 12 purchase about 15 to 20% of Indian exports to 15% of the total exported rice. Purchases are made according to the Low Support Price, and there is no limit to the purchase price as long as the conditions under Fair Average Quality are met.

The Food Corporation of India has recently entered the purchase of pulses in various regions from the 2015-16 crop year. The pulses are purchased at market value, a sharp deviation from its standard price-based system.

Facts about Food Corporation of India

Objective of FCI

• Appropriate price support to protect the interests of poor farmers

• Active distribution of food grains through Public Distribution Systems (PDS)

• Active stock retention and grain restriction ensure a continuous supply of essential nutrients.

• Market price controls food grains so people can get them at an affordable price.

Organizational Structure of the FCI

These managers manage different categories such as sales, contracts, purchases, quality control, performance account,

The Division Officer reports to the Regional Office. The General Manager holds the Regional Office and is usually selected from the list of Indian Administration Services, Indian Police Services, or All India Services under deputation.

The police inform the General Manager of the status of their units.

An FCI is divided into the following 5 areas:

• North

• South

• North-East

• East

• West

Latest Developments about the Food Corporation of India

Due to the many short failures of FCI, the High-Level Committee (HLC) under Shanta Kumar has made several recommendations on how the organization can be restructured based on acquisition, retention, and distribution factors. They are as follows:

• Procurement: The committee recommended that all procurement by FCI be transferred to the provinces that have received information on the matter and have provided the necessary infrastructure.

• Negotiable warehouse receipt system: The warehouse receipt system should be negotiated to enable farmers to place their deposits in warehouses. They can sell it at a price that is right for them and, at the same time, reduce government maintenance costs.

• MSP Policy Review: HLC recommends that pulses and oilseeds should also be in the MSP category. Currently, the MSP for 23 goods has been announced for the priorities of wheat and rice, but the MSP was only applicable to selected districts. The current system creates an unequal price that allows for wheat and rice.

• The HLC had suggested that the government reconsider (67 percent of the population) under the NFSA as it was on the ‘higher’ side.

In the Union's 2021 budget, it was proposed that the food subsidy provided to the Food Corporation of India be revised to Rs 3,44,077 crore from the initial subsidy amount of Rs 77,983 crore allocated to the Union's 2020 Budget. The fixed allocation was made due to the government's decision to repay FCI increased loans and return to budget transfers in support of the food subsidy bill.