FCI to borrow ₹50,000 cr for 3-month grain procurement
The Food Corporation of India (FCI) is planning to borrow ₹50,000 crore from banks for three months to help cover the costs of buying and distributing food grains.
If needed, they can bump that up by another ₹25,000 crore, but total borrowing will not go past ₹75,000 crore.
The goal? Make sure there is enough cash on hand so farmers get paid on time and food supplies keep running smoothly.
Unsecured loan tender opens May 22
The loan tender opens May 22 and runs till August 31. These loans are unsecured (so no government guarantee) and FCI will take out money in parts as needed.
On the wheat front: FCI and state agencies have together procured nearly 23 million metric tons directly from farmers this season at minimum support price (MSP), with Punjab and Madhya Pradesh leading the pack.
The target for this year is about 34.5 million metric tons, so there is still a way to go!