Question

Q96. With reference to Price Stabilization Fund Scheme, which of the following statements is/are correct?

1. It helps to regulate the price volatility of the important agri-horticultural commodities.

2. Currently, the scheme is under the Ministry of Agriculture and Farmers’ Welfare.

Which of the above statement(s) is/are correct?

• A. (a) Only 1
• B. (b) Only 2
• C. (c) Both 1 and 2
• D. (d) None of the above

Answer 1

The correct option is A

(a) Only 1

Price Stabilization Fund Scheme

• The Price Stabilization Fund (PSF) was set up in 2014-15 under the Department of Agriculture, Cooperation & Famers Welfare (DAC&FW).
• The PSF scheme was transferred from DAC&FW to the Department of Consumer Affairs (DOCA) in 2016.
• The fund is 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 discourages 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 agricultural ministry has recently proposed to include Milk in the PSF which is not yet confirmed.