- 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 and pulses were also added subsequently.
- The scheme provides for maintaining a strategic buffer of aforementioned commodities for subsequent calibrated release to moderate price volatility and discourage hoarding and unscrupulous speculation.
- For building such stock, the scheme promotes direct purchase from farmers/farmers’ association at farm gate/Mandi.
- The PSF is utilized for granting interest free advance of working capital to Central Agencies, State/UT Governments/Agencies to undertake market intervention operations. Apart from domestic procurement from farmers/wholesale mandis, import may also be undertaken with support from the Fund.
Why in News?
- The Cabinet Committee on Economic Affairs approved a ₹1,200 crore scheme for disposal of chana to states at a discounted rate, which will be utilised for various welfare schemes from the stock of pulses procured under the Price Stabilization Fund (PSF).