Millennium Post

Food Corporation raises short-term loan of Rs 20,000 cr

Forced by rising food subsidy arrears, the Food Corporation of India (FCI) has raised Rs 20,000 crore for the second time this fiscal to continue the smooth procurement and distribution of foodgrains.

The loan has been raised from various banks at interest rates in the range of 9.95-10.25 per cent, sources said.

In the recently floated tender on 15 July, the FCI said: ‘To meet out its short-term fund requirement for procurement and distribution of food grains, the corporation is considering raising short-term loans from the scheduled banks only for 90 days tenure.’

In April, FCI had floated a tender for the same amount and raised it from around 20 banks at interest rates in the range of 10.19-10.25 per cent.
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