History of Food Corporation of India (FCI)

A Brief History of Food Corporation of India (FCI)

Founded during India's Green Revolution over six decades ago, the Food Corporation of India (FCI) is an integral part of the country's agricultural ecosystem. Established in October 1965 by the Government of India, FCI aimed to address food security challenges and alleviate widespread hunger following tragic famines like those witnessed in Bengal in the mid-twentieth century.

The initial concept of establishing an agency dedicated to acquiring surplus grains from farmers after harvest emerged amidst growing concerns about food scarcity and price volatility within Indian markets. At its creation, just three commodities were under FCI’s purview—rice, wheat, and sugar—although now it manages multiple other products such as maize, millet, pulses, and edible oils.

Key Milestones in FCI's Evolution:

• 1965 — FCI established as a Central Public Sector Undertaking with objectives focused on procuring grain surpluses, maintaining strategic stocks, regulating supply and distribution, and ensuring adequate availability throughout the year.
• 1981 — Price stabilization operations began through centralized purchase and sale mechanisms.
• Early 1990s — Operations expanded into broader areas of procurement management, storage, transportation, quality control, and market intelligence gathering.
• 2004 — Public Distribution System reforms introduced new measures such as Targeted Public Distribution System (TPDS) and Antyodaya Anna Yojana (AAY), which prioritized food aid delivery to vulnerable communities based on specific criteria.
• Late 2010s — As per Economic Survey 2017-18, automation was implemented across various sectors of FCI, leading to improved productivity and resource optimization.

Today, FCI remains one of the largest foodgrain handling organizations globally, operating more than 500 warehouses spanning all states and union territories of India. With annual transactions exceeding $3 billion USD and managing approximately half of total wheat production, this government entity continues playing an essential role in mitigating economic disparities while promoting self-reliance in the nation's agriculture sector.