Q. Under which of the following department, the price stabilization fund was set up?

[A] Department of economic affairs

[B] Department of Consumer affairs

[C] Department of Agricultural Research and Education

[D] Department of financial services

Answer: B
Notes:

Explanation: The Price Stabilization Fund (PSF) was set up in 2014-15 under the Department of Agriculture, Cooperation & Famers Welfare (DAC&FW) to help regulate the price volatility of important agri-horticultural commodities like onion, potatoes and pulses were also added subsequently.

  • The PSF scheme was transferred from DAC&FW to the Department of Consumer Affairs (DOCA) w.e.f. 1st April, 2016.
  • 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.

Source: https://pib.gov.in/newsite/PrintRelease.aspx?relid=160050