FCI explores off- budget financing

HISTORICALLY, THE GOVERNMENT has permitted FCI to raise funds through sovereign-backed bonds to meet working capital needs.

- 

Between 2013 and 2021, the corporation issued bonds worth ₹36,700 crore, with maturities ranging from 10 to 15 years. These liabilities are due between 2028 and 2031.

Officials attributed the renewed funding stress largely to the rising economic cost of holding surplus rice and wheat stocks - well above buffer norms - and the continued supply of heavily subsidised grain from these inventories. As a result, FCI's expenditure in FY26 is estimated to overshoot the budget estimate by ₹30,000-40,000 crore.

FCI, which accounts for over 70% of the government's food subsidy outgo, has revised its projected FY26 expenditure to ₹1.72 lakh crore, up from the budgeted ₹1.43 lakh crore. However, the food ministry has so far been unable to secure approval for a higher allocation amid tight fiscal conditions.