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Food Corporation of India (Hindi: भारतीय खाद्य निगम) was set up
on 14 January 1965 having its first District Office
at Thanjavur - rice bowl of Tamil Nadu - and headquarters
at Chennai under the Food Corporations Act 1964 to implement
the following objectives of the National Food Policy :
1)Effective price support
operations for safeguarding the
interests of the farmers
2)Distribution of food grains
throughout the country
for Public Distribution System
level of operational and buffer
stocks of food grains to ensure
National Food Security
4)Regulate market price to
provide food grains to
consumers at a reliable price
It is the duty of FCI India to create various warehouses for the storage of
the food grains. Food corporation of India is providing food grains in a
wider range covering all the sections of the society at an affordable price.
FCI India is running the following functions:-
It entirely focuses
on supporting the
providing the food
grains to large
number of public in
a more well and
efficient way for
Food is the basic
requirement of the
It comes under the
Food corporation of
India Functions to
preserve and store
the large quantity
of food grains and
spreading it over
the large and vast
To arrange the
It is the function of FCI India to distribute and supply food grains
through rations shops which comes under Food corporation of India
Food corporation of India Functions for the betterment of the
society considering large masses.
Food corporation of India Functions the sale of food grains and its
movement mainly depends on the rail being a deficit country.
It again comes under the Food corporation of India functions to
enhance the crop production.
The FCI pays the farmers at a price that is already fixed by the
government which is called Minimum Support Price(MSP). MSP is
announced by the government every year before the sowing season.
Therefore, the announcement of the price helps farmers to plan their
agricultural activity and increase production.
As explained above, buffer stocks are required to ensure food security
during the periods when production is short of normal demand during
bad agricultural years and stabilize prices during period of production
shortfall through open market sales.
FCI stores its purchases in granaries which belong to the government.
The excess stock held by FCI is called buffer stock.
The buffer stock is distributed to poor people where there is shortage of
A very reasonable price is fixed as the selling price. This price is known
as the issue price.
There are about 4.6 lakh ration shops all over the country. These shops
sell essential items like food grains, sugar and Kerosene oil for cooking.
The price of these items is much lower than the market price.
It is one of the largest corporations in India and probably
the largest supply chain management in Asia (Second in
Each year, the FCI purchases roughly 15 to 20 per cent of
India's wheat output and 12 to 15 per cent of its rice output.
The purchases are made from the farmers at the rates declared
by the Govt. of India.
There is no limit for procurement in terms of volume, any
quantity can be procured by FCI provided the stock satisfies
FAQ (Fair Average Quality) specifications with respect to FCI.
The stocks are transported throughout India and issued to the State
Government nominees at the rates declared by the Govt of India for
further distribution under the Public Distribution System (PDS) for
the consumption of the ration card holders. (FCI itself does not
directly distribute any stock under PDS and its operations end at
the exit of the stock from its depots).
FCI by itself is not a Decision making authority, it does not
decide anything about the MSP, Imports or Exports. It just
implements the decisions made by the Ministry of Food and
Ministry of Agriculture