Price stabilization fund (PSF) - Capital, usage , sharing between center and state - Agronomy

Q.  Consider the following statements regarding a price stabilization fund (PSF)

1. The fund will have capital of Rs. 500 crore which will be used to manage perishable agri-horticultural commodities.
2. Initially, the fund is proposed to be used for onion and potato only.
3. If the domestic price falls below 20 per cent of the moving average price, then, the year is considered as one of distress.
4. The contribution to the state level fund by the Central Government and State Governments would be in the ratio 75:25

Which of the above statements are correct?
- Published on 30 Apr 15

a. 1,3,4
b. 1,2,3
c. 1,2
d. All

ANSWER: 1,2,3
 
The contribution to the state level fund by the Central Government and State Governments would be in the ratio 50:50.Only for North-East States the ratio would be 75:25.

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