Food Corporation of India (FCI) came into existence in January 1965 through the Food Corporation Act 1964. The headquarters of FCI was initially located in Chennai and was later shifted to Delhi.
FCI ensures the effective price support operations through MSPs for safeguarding the interest of poor farmers and distribution of food grains throughout the country by Public Distribution System (PDS).
It has to maintain a minimum level of operational buffer stocks of foodgrains to ensure National Food Security. It also regulates market price of foodgrains through effective market intervention.
FCI along with state agencies undertakes procurement of wheat and paddy under price support scheme through their purchase centres at various mandis. Coarse grains are procured by state government agencies for central pool as per directions issued by Government of India.
FCI is not the main decision making body regarding Minimum Support Prices (MSP) for agricultural commodities. The Corporation simply implements the decision taken by the Cabinet Committee on Economic Affairs (CCEA) through its public procurement.
