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Source: The post is based on the article “Cabinet approves disposal of Chana procured under Price Support Scheme & Price Stabilization Fund” published in PIB on 31st August 2022.
What is the News?
Cabinet Committee on Economic Affairs has approved the disposal of Chana (Pulses) to States/UTs at a discounted rate to be utilized for various Welfare Schemes from the stock of pulses procured under the Price Support Scheme(PSS) & Price Stabilization Fund (PSF).
What is a Price Support Scheme?
Nodal Ministry: Ministry of Agriculture & Farmers Welfare
Purpose: The scheme is operationalised only when prices of agri-produce fall below the minimum support price(MSP).
Click Here to read more about the scheme
What is the Price Stabilization Fund(PSF)?
Setup in: 2014-15
Nodal Ministry: Department of Consumer Affairs
Aim: To help regulate the price volatility of important agri-horticultural commodities like onion, potatoes and pulses.
Features of the scheme: 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’ associations at the farm gate/Mandi.
Fund Utilization: The PSF fund 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.