Food Corporation of India
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Food Corporation of India was setup on 14th January 1965 under Food Corporation Act 1964 with authorised capital of almost $600 million[1] to implement the national policy for price support operations, procurement, storage, preservation, inter-state movement and distribution operations.
It operates through 5 zonal offices and a regional office in Delhi. Each year, the Food Corporation purchases roughly 15-20 per cent of India's wheat output and 12-15 per cent of its rice output. The losses suffered by FCI are reimbursed by the Union government, to avoid capital erosion, and thus declared as a subsidy in the annual budget. In 2007, such food subsidies were met by government bonds worth almost $8 billion.[2]
