Price Stabilization Fund Scheme
The Rs. 900 crore fund under ministry of Consumer Affairs, Food and Public Distribution tries to contain the prices of essential commodities especially of pulses. This fund was earlier under agriculture ministry but was transferred to Consumer Affairs Ministry in February 2016. Under agriculture ministry, this fund was used to support market interventions for managing prices of perishable agri-horticultural commodities by procuring directly from farmers and later supplying at reasonable rates to consumers.
The scheme was aimed to provide relief to consumers but was mainly used to provide relief to farmers. Since farmers are already protected by Minimum Sport Price scheme, the Price Stabilization Fund was rightly moved to Ministry of Consumer affairs.
This shifting was in response to the steep hikes in prices of Dal early this year.