Set up under a 1964 Act, the Food Corporation of India began work with an authorised capital of Rs 100 crore

Background

The Food Corporation of India was set up under the Food Corporations Act, 1964 to be the nodal central government agency responsible for the purchase, storage, interstate movement and distribution of food grains. It is a Public Sector Undertaking under the Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution, and is the main agency responsible for execution of the food policies of the Government of India. Its functions primarily include Purchase, Storage, Movement, Distribution and Sale of foodgrains on behalf of the Government of India. The Corporation started its journey in 1965 with an authorised capital of Rs. 100 Crores and equity of Rs. 4 Crores, and the equity was increased from time to time. It procures grains that are issued at the Central Issue Price, set by the Government, and delivers food grains to State Governments and agencies from its base depots for distribution through Fair Price Shops. To add nutrition security to food security, the Corporation has facilitated the distribution of nutrient-rich fortified rice among ration card holders. Traditional Cover and Plinth storage is being replaced with scientifically managed storage depots and silos, and the Corporation implemented a One Nation, One MSP policy of direct online payments to farmers.