It has been reported in a section of Press that there is financial crisis in Food Corporation of India (FCI), leading to non-payment to States/State Agencies on account of procurement by FCI. It is categorically denied that there is any financial crisis in the FCI. The Corporation has to meet expenditure beyond the budget allocation, due to bonus on wheat, rise in paddy procurement price and additional allocation etc. All the additional requirements of FCI are being met by the Government.
It may be mentioned here that the original allocation for FCI for 2011-12, was Rs. 47239.8 crore and for DCP States Rs. 12,845 crore.Against these allocations, the Government has already released Rs. 12,000 crore to FCI in the first week of April 2011, and Rs. 4,000 crore in the first week of July 2011. Due to pressing requirements of procuring operations, Rs. 7,635.84 crore was released recently on 21st July 2011 to FCI.
In the meantime, due to declaration of incentive bonus of Rs. 50 per quintal for wheat, additional allocations of foodgrains for APL and BPL families and increase in MSP of paddy by Rs. 80 per quintal for Kharif Marketing Season, the estimated additional requirement of FCI, increased to Rs. 81,977 crore for FCI and Rs. 13,334 crore for DCP States.