About

• The Price Stabilization Fund (PSF) was set up in 2014-15 to help regulate the price volatility of important agri-horticultural commodities like onion, potatoes, etc. 
• Such goods will be procured directly from farmers or farmers’ organisations at the farm gate/mandi, and made available to consumers at a more affordable price. Losses sustained, if any, between the Centre and the states must be shared in the operations.
• The PSF scheme also provides for the advancement of interest-free loans to State Governments/Union Territories (UTs) and Central Agencies to finance their working capital and other expenses, which they may incur in the procurement and distribution of such commodities.
• Apart from domestic procurement from farmers/wholesale mandis, import may also be undertaken with support from the Fund. 

Why in News?

• The Government has allowed export of 99,150 MT of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka. 
• Onion export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 as compared to previous year and increase demand in international market.
• The National Cooperative Exports Limited (NCEL) is the agency for export of onion to these countries.
• The procurement target for onion buffer out of Rabi-2024 under the Price Stabilisation Fund (PSF) of Department of Consumer Affairs has been fixed at 5 Lakh tons this year. 
• The Central Agencies, viz., NCCF and NAFED are tying up local agencies such as FPOs/FPCs/PACs to support the procurement, storage and farmers registration to begin the procurement of any store-worthy onion. 

https://pib.gov.in/PressReleasePage.aspx?PRID=2018995