(THE GIST OF PIB) Price Stabilization Fund

(MAY-2024)

The Government has allowed export of 99,150 MT of onion to six neighbouring countries of Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka.
Onion export prohibition has been imposed to ensure adequate domestic availability against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 as compared to previous year and increase demand in international market.
The National Cooperative Exports Limited (NCEL) is the agency for export of onion to these countries.
The procurement target for onion buffer out of Rabi-2024 under the Price Stabilisation Fund (PSF) of Department of Consumer Affairs has been fixed at 5 Lakh tons this year.
The Central Agencies, viz., NCCF and NAFED are tying up local agencies such as FPOs/FPCs/PACs to support the procurement, storage and farmers registration to begin the procurement of any store-worthy onion.

The Price Stabilization Fund (PSF) was set up in 2014-15 to help regulate the price volatility of important agri-horticultural commodities like onion, potatoes, etc.
Such goods will be procured directly from farmers or farmers’ organisations at the farm gate/mandi, and made available to consumers at a more affordable price. Losses sustained, if any, between the Centre and the states must be shared in the operations.
The PSF scheme also provides for the advancement of interest-free loans to State Governments/Union Territories (UTs) and Central Agencies to finance their working capital and other expenses, which they may incur in the procurement and distribution of such commodities.
Apart from domestic procurement from farmers/wholesale mandis, import may also be undertaken with support from the Fund.