Price Stabilization Fund : Purpose & corpus
Q. Which of the following statements is/are correct about Price Stabilization Fund?
1. It is Central Sector Scheme with corpus of Rs.500 crores.
2. It will control the prices of perishable agri-horticultural commodities.- Published on 11 Dec 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Both
- Price Stabilization Fund will intervene the market for controlling the prices of perishable agri-horticultural commodities.
- It 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.
- States will set up a fund to which Center and State will contribute equally (50:50). The ratio of Center-State contribution to the State level corpus in respect of North East States will be 75:25.
- Initially the fund is proposed to be used for onion and potato only.
Now after approval from CCEA, fund will be used for pulses also.
