The Food Corporations Act, 1964

Administered Ministry: Ministry of Consumer Affairs, Food and Public Distribution / Department of Food and Public Distribution

Act details

Short titleThe Food Corporations Act, 1964
Long titleAn Act to provide for the establishment of Food Corporations for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto.
Act number37 of 1964
Act year1964
Enactment date10 Dec 1964
MinistryMinistry of Consumer Affairs, Food and Public Distribution / Department of Food and Public Distribution
DepartmentDepartment of Food and Public Distribution
JurisdictionCentral (Parliament of India)
Sections47
Schedules1
StatusNot repealed
Last checked on India Code3 Nov 2026
SourceIndia Code, Government of India

Summary

Summary of Food Corporations Act, 1964:
• State Food Corporations: May be established by the Central Government for specific states.
• Board of Directors: Composed of a Chairman, General Manager, and up to 10 other members, appointed after consultations with Central and State Governments.
• Disqualification & Removal: Provisions for disqualification and removal of board members.
• Primary Duty: Undertake purchase, storage, movement, transport, distribution, and sale of foodgrains and other foodstuffs.
• Additional Powers: With Central Government approval, promote foodgrain production, set up processing undertakings, and discharge other prescribed or related functions.
• Funding: Capital for State Corporations provided by the Central Government and FCI.
• Accounts & Audit: Maintained by the Corporation, audited by the Comptroller and Auditor-General of India.
• Surplus Allocation: After reserves, surplus distributed according to the Act's provisions.
• Immunity & Indemnity: Protection for actions taken in good faith and indemnity for directors.
• Rule Making: Power to make rules and regulations for operational aspects.

Legislative history

Legislative History:

The Food Corporations Act, 1964

● Act Title - The Food Corporations Act, 1964

● Act Number / Year - 37 of 1964

● Act ID (India Code) - 196437

● Presidential Assent Date - December 10, 1964

● Enforcement Date - December 17, 1964

● Nodal Ministry - Ministry of Consumer Affairs, Food and Public Distribution

Precedent & Historical Rationale

● Institutionalization of National Food Security and Procurement - Enacted during the severe food shortages of the mid-1960s to establish a statutory corporate entity capable of undertaking large-scale purchase, storage, movement, transport, distribution, and sale of foodgrains and other foodstuffs across the country.

● Creation of the Food Corporation of India (FCI) and Price Stabilization - Formulated to set up the Food Corporation of India (FCI) as the primary state agency to implement national food policies, protect farmers through Minimum Support Price (MSP) operations, and secure public distribution networks.

Parliamentary Trajectory & Enactment

● Formulation - Introduced by C. Subramaniam, Minister for Food and Agriculture, to build an institutional apparatus capable of supporting the Green Revolution and stabilizing foodgrain supply across states.

● Parliamentary Passage - Debated and passed by both Houses of Parliament (Third Lok Sabha and Rajya Sabha) during the November–December 1964 winter session.

● Presidential Assent - Received Presidential Assent on December 10, 1964.

● Enforcement - Enforced on December 17, 1964.

Source - Official Record of Parliament, India Code, and Ministry of Consumer Affairs, Food and Public Distribution.