FCI dues to NSSF jump by 40% in 2020-21

Records steepest annual spike

by Natasha Nadkar

The Food Corporation of India (FCI)’s indebtedness to the National Small Savings Fund (NSSF) is set to rise to a level of Rs.3.5 trillion in 2020-21 from Rs.2.5 trillion at the end of 2019-20, as per a report in Financial Express. This will be the steepest annual spike in these loans which are increasingly being resorted to by the Centre to keep the food grain procurement operations going and meet the enhanced obligations of highly subsidised PDS food supplies under the National Food Security Act (NFSA). The food subsidy component routed via the FCI under the NFSA is estimated to increase to Rs.1.75 trillion from an earlier estimate of Rs.1.4 trillion. This is because the government decided to distribute three months of ration to 810 million NFSA beneficiaries free of costs during April-June 2020 under Pradhan Mantri Garib Kalyan Yojana at a cost of Rs.430 billion, of which Rs.350 billion is to be routed via FCI.

References
1. https://www.financialexpress.com/economy/free-ration-scheme-debt-trap-fci-dues-to-nssf-to-jump-by-40-in-fy21/1966728/
CMIE STATISTICS
Unemployment Rate
Per cent
8.9 0.0
Consumer Sentiments Index
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43.1 -0.4
Consumer Expectations Index
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Completed projects 0.85 1.65 1.70 0.17
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All listed Companies
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 PAT margin (%) 6.2 5.3 5.1 3.2
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Non-financial Companies
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 Expenses 1.6 -6.7 -6.4 -3.9
 Net profit -7.5 -13.5 -14.1 -43.5
 PAT margin (%) 6.3 5.8 5.7 4.4
 Net fixed assets 10.4 13.7
 Current assets 5.0 3.2
 Current liabilities 5.0 3.5
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Updated on: 12 Jul 2020 3:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.3 13.2 4.3
 Expenses 9.8 13.4 2.8
 Net profit -39.9 20.7 15.0
 PAT margin (%) 2.0 2.4 10.3
 Assets 10.9 9.2 11.8
 Net worth 7.5 8.5 6.5
 RONW (%) 3.5 4.4 11.7
 Count of Cos. 26,220 24,732 364
Non-financial Companies
 Income 8.5 13.6 0.1
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 PAT margin (%) 2.8 3.2 12.7
 Net fixed assets 7.1 4.9 30.4
 Net worth 6.1 8.4 3.6
 RONW (%) 5.7 7.0 15.3
 Debt / Equity (times) 1.0 0.9 0.5
 Interest cover (times) 2.1 2.4 6.3
 Net working capital cycle (days) 77 69 -13
 Count of Cos. 21,415 20,146 258
Numbers are net of P&E
Updated on: 09 Jul 2020 7:12PM