Price Stabilisation Fund Scheme
To mitigate volatility in the prices of agricultural produce
- The scheme provides for maintaining a strategic buffer of 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.
- The Fund will be managed by Prize Stabilization Fund Management Committee which will approve all proposals from state government and central agencies and it will be maintained in a Central Corpus Fund account to be opened by Small Farmers Agri-Business Consortium
(SFAC), which will act as Fund Manager.
- It is a Central Sector Scheme
- The States will have to set up a revolving fund to which Centre and State will contribute equally (50:50).
- The Ratio will be 75:25 in North East states