Food Corporation of India () was setup on 14th January 1965 having its first District Office at Thanjavur - rice bowl of Tamil Nadu - and headquarters at Chennai under the Food Corporations Act 1964 to implement the following objectives of the National Food Policy :
Effective price support operations for safeguarding the interests of the farmers
Maintaining satisfactory level of operational and buffer stocks of foodgrains to ensure National Food Security
It is the largest corporation in India and probably the largest supply chain management in Asia. It operates through 5 zonal offices and 26 regional offices. Each year, the Food Corporation of India purchases roughly 15-20 per cent of India's wheat output and 12-15 per cent of its rice output. The purchases are made from the farmers at the rates declared by the Govt. of India. This rate is called as MSP (Minimum support Price). There is no limit for procurement in terms of volume, any quantity can be procured by FCI provided the stock satisfies FAQ (Fair Average Quality) specifications with respect to FCI.
The stocks are transported throughout India and issued to the State Government nominees at the rates declared by the Govt of India for further distribution under the Public Distribution System (PDS) for the consumption of the ration card holders. (FCI itself does not directly distribute any stock under PDS... Read More