Price Stabilization Fund (PSF) - Ministry of Consumer Affairs, Food & Public Distribution | Current Affairs | Vision IAS

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Price Stabilization Fund (PSF)

Updated: 17 Oct 2025
Ministry: Ministry of Consumer Affairs, Food & Public Distribution
Beneficiary: Farmers

Overview

The scheme stabilizes prices of key agri-horticultural commodities like onions, potatoes, and pulses. It procures directly from farmers and releases stocks strategically to moderate market volatility.

  • Aim: To tackle price volatility in some agri-horticultural commodities such as onion, potatoes, and pulses. 
  • These commodities are procured and stored for regulated release to moderate the prices. 
  • 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.