FCI to raise ₹50,000 cr short-term debt to manage foodgrain operations

New Delhi: The Food Corporation of India will raise ₹50,000 crore in short-term debt from scheduled banks for a three-month tenure, with a green shoe option to mop up an additional ₹25,000 crore, a senior government official said Monday.

The funds are being raised to bridge cash flow mismatches arising from procurement and distribution of foodgrains across the country.

FCI is the government’s nodal agency for procurement of wheat and rice at minimum support prices and for distribution through the Public Distribution System and other welfare schemes.

The corporation routinely taps short-term loans to manage working capital needs between procurement cycles and the release of food subsidy from the Centre.