Price Stabilisation Fund Scheme


To mitigate volatility in the prices of agricultural produce


Salient features

  • 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