Price Stabilization Fund

Ministry/Department: Department of Agriculture Cooperation& Farmers Welfare , Ministry of Agriculture
Objective: Objective of the PSF was to safeguard the interest of the growers and provide them financial relief when prices fall below a specified level
  • Central Sector Scheme
  • To support market interventions for price control of perishable agri-horticultural commodities
  • PSF will be used to advance interest free loan to State Governments and Central agencies to support their working capital and other expenses on procurement and distribution interventions for such commodities
  • Procurement of the commodities will be undertaken directly from farmers or farmers’ organizations at farm gate/mandi and made available at a more reasonable price to the consumers.
  • Initially the fund is proposed to be used for onion and potato only.  Losses incurred, if any, in the operations will be shared between the Centre and the States.
Framework and Funding:
  • States will set up a revolving fund to which the Centre and State will contribute equally.
  • The ratio of Centre-State contribution to the State-level corpus in respect of northeast States will, however, be 75:25
Factual Information:
  • Launched in 2003

2 thoughts on “Price Stabilization Fund”

  1. Some wrong information is there…
    Objective is to stabilize the price in either case. ..that is price fall below or goes above….

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