Agricultural marketing

FOOD CORPORATION OF INDIA 
An efficient management of the food economy with a view to ensuring an equitable 
distribution of grains of food grains at reasonable prices to the vulnerable sections of 
society is essential in the present socio-economic environment of the country. The 
government felt the necessity of an organization which can act as its main agency for 
handling food grains., acquire a commanding position in the food grain trade as a 
countervailing force to the speculative activities of private trades and, at the same time, 
work on commercial lines. Towards the end of 1964, Parliament decided to transfer the 
government’s function of trading in food grains to the public sector. Legislation was 
enacted; and the food corporation India (FCI)WAS BORN ON January 1,1965. 
Food Corporation of India was setup on 14th January 1965 under 
Food Corporations Act
 
1964
to implement the following objectives of the National Food Policy : 
i. Effective price support operations for safeguarding the interests of the farmers 

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ii. Distribution of foodgrains throughout the country for 
Public Distribution System
iii. 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 24 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.
The Food Corporation of India initially operated in the southern part of the country. 
Later, it extended its services throughout the country. Today, the FCI is unrivalled food 
marketing agency, serving the interest of both the farmers and consumers. Its market 
operations prevent the speculative trader from acting against the interests of the farmers 
by assuring him a remunerative price for his produce, it ensures a prompt and 
uninterrupted supply of food grains to the vulnerable sections of the society all over the 
country. Operationally the FCI reaches the remotest corners of the country through its 
vast network of offices and storage centers. Financially, it is one of the largest public 
sector undertakings, with an annual turnover of over Rs.25400 crores.