To meet cash flow mismatches and provide temporary working capital, the Food Corporation of India (FCI) will raise short-term loans of Rs 50,000 crore from scheduled banks for a three-month tenure, with a green shoe option to mop up an additional Rs 25,000 crore. According to a tender floated by the FCI, these loans will be unsecured, and offers will remain valid up to August 31, with loan disbursals made in tranches according to FCI’s operational requirements. “The rising cost of holding hugely surplus foodgrains continues to boost food subsidy expenditure while short-term loans are used to bridge the gap between the periodic allocation under food subsidy and rising costs,” an official told FE.