Ministry of Consumer Affairs Current Affairs - 2020
Cabinet Committee on Economic Affairs (CCEA) approved increasing authorized capital of Food Corporation of India (FCI) from existing Rs.3,500 crore to Rs.10,000 crore. CCEA was chaired by Prime Minister Narendra Modi.
FCI’s operations require maintaining perpetual stock of foodgrains which needs to be funded by government of India through equity or via long term loan. Therefore, Centre government is providing equity to FCI for maintaining stocks. As on 31 March 2019, the present authorized equity capital of FCI is Rs.3,500 crore and paid up equity capital is Rs.3447.58 crore.
Significance: With the increase of authorized capital, additional equity capital can be infused in Food Corporation of India (FCI) through Union Budget for funding foodgrains stock, perpetually held by FCI. This will reduce thereby FCI’s borrowings, save FCI’s interest cost as well as reduce food subsidy in consequence.
About Food Corporation of India (FCI)
It was constituted under Food Corporations Act, 1964, to implement the objectives of National Food Policy of Government of India. FCI is a government-owned corporation under Department of Food and Public Distribution of Union Ministry of Consumer Affairs, Food and Public Distribution.
FCI Objectives: to ensure food security of Nation; to ensure Minimum Support Price (MSP) to farmers; to maintain buffer stock of foodgrains; distribution of foodgrains under National Food Security Act (NFSA); and execution of government policies and welfare schemes.
Tags: Cabinet Committee on Economic Affairs • Cabinet Decision • CCEA • FCI • Food Corporation of India
Union Government has decided to prepare detailed roadmap for nationwide distribution of fortified rice through ration shops. Instructions also have been given to Department of Food and Public Distribution to implement distribution fortified rice. Decision in this regard was taken in meeting between Union Food minister Ram Vilas Paswan reviewed and NITI Aayog vice chairman Rajiv Kumar for reviewing progress of rice distribution
Pilot Scheme: Fortification of Rice and its Distribution under Public Distribution System
Union Government (Ministry of Consumer Affairs, Food and Public Distribution) in February 2019 had approved centre-sponsored pilot scheme on “Fortification of Rice and its Distribution under Public Distribution System”. This Pilot Scheme was approved for period of three year beginning 2019-20.
Under this scheme rice is fortified with Iron, Vitamin B-12 and Folic Acid. Currently, it focuses on 15 districts preferably 1 district per State during initial phase of implementation. The operational responsibility for implementation of this pilot scheme is of states which fortifies rice for distribution through Public Distribution System (PDS).