FCI Takes Short-Term Loan Due to Large Stocks

09-Jun-2025 09:09 AM

FCI Takes Short-Term Loan Due to Large Stocks
★ Despite the early release of Rs. 27,590 crore food subsidy in the first two months, the Food Corporation of India (FCI) has taken a short-term loan of Rs. 19,190 crore due to rising economic costs.
★ FCI currently holds 74.67 million tonnes of grain stock, including 38.01 million tonnes of rice and 36.65 million tonnes of wheat. This stock is significantly higher than the buffer norm of 41.12 million tonnes set for July 1.
★ For several years, FCI has been procuring over 76 million tonnes of grain annually, while the requirement under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) is around 56-58 million tonnes. This has led to increasing stockpiles and higher economic costs.
★ For the year 2025-26, FCI’s estimated economic cost is Rs. 41.73 per kg for rice and Rs. 29.80 per kg for wheat, up from Rs. 40.42 and Rs. 28.50 per kg respectively in 2024-25.
★ The growing stocks and subsidy pressures have created the need for this loan.