INDIA - To help farmers getting correct price for its produces, Indian government’s Department of Agriculture & Cooperation has set up a the price stabilisation fund (PSF) as a central sector scheme with a corpus of $80 million (Rs 500 crore).
The fund will support market interventions for price control of perishable agri-horticultural commodities.
PSF will be used to advance interest free loan to state governments and central agencies to support their working capital and other expenses on procurement and distribution interventions for such commodities, Indian agriculture ministry said in a statement.
For this purpose, the states will set up a revolving fund to which centre and state will contribute equally (50:50).
However, the ratio of North East States will be 75:25, of which 75 per cent will be contributed by central government and balance 25 per cent will be contributed by state government.
The revolving fund is being mooted so that requirements for all future interventions can be decided and met with at the State level itself, whereas, central agencies will, however, set up their revolving fund entirely with the advance from the Centre.
Procurement of these commodities will be undertaken directly from farmers or farmers’ organizations at farm gate/mandi and made available at a more reasonable price to the consumers. Initially the fund is proposed to be used for onion and potato only.
Losses incurred, if any, in the operations will be shared between the Centre and the States.