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Government brings Wheat and Rice under Price Stabilisation Fund

Utkarsh Classes 21-03-2024
Government brings Wheat and Rice under Price Stabilisation Fund Government Scheme 6 min read

As part of its retail intervention strategy to control inflation, the government of India has brought wheat and rice under the Price Stabilisation Fund (PSF). This is expected to help the government procure more wheat and rice from the Food Corporation (FCI) and sell them as wheat atta and rice at highly subsidised prices under the Bharat brand.

What is the Bharat Brand?

The Union Ministry of Consumer Affairs, Food and Public Distribution has launched the  Bharat Brand to provide foodgrains and other essential goods to the people at a subsidised price. So far, the government has launched Bharat Atta, Bharat Dal and Bharat rice for retail sales under the Bharat Brand.  

Bharat Rice is sold at Rs 29 per kg, Bharat Atta at Rs 27.50, and Bharat Chana Dal at Rs 60 per kg on retail outlets and e-commerce platforms.

Bharat brand commodities are sold through outlets of the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), Kendriya Bhandar, National Cooperative Consumers’ Federation of India (NCCF), and e-commerce sites.

How will the scheme work?

The government’s procurement agencies, NAFED and NCCF, will directly procure wheat and rice from the FCI. The government will provide a subsidy of Rs.435 per quintal of wheat and Rs. 200 per quintal for rice. The NAFED and NCCF will process the rice and wheat and sell them in the market under the Bharat brand.

Price Stabilisation Fund 

The government of India set up the Price Stabilisation Fund in 2014-15. The Union Ministry of Consumer Affairs, Food and Public Distribution managed the fund. 

It was set up to check the volatility in the prices of agricultural commodities and mitigate the hardships faced by consumers.

Aim of the scheme 

The objectives of PSF are 

(i) to purchase agricultural/horticultural commodities directly from the farmers’ associations at the farm gate or mandi; 

(ii) to maintain a buffer stock to discourage hoarding and unscrupulous speculation in the identified agricultural and horticultural commodities; and 

(iii) to protect consumers from high prices by supplying such commodities at reasonable prices through calibrated stock release.

(iv) Pulses from the buffer are also supplied to states for welfare schemes and the Army and Central Armed Police Forces. 

Buffer Stock under PSF 

Under the Price Stabilisation Fund (PSF) scheme, a buffer stock of pulses (Urad, Moong, Tur, Masur and Gram), onion, tomato and potato is being maintained. Wheat and rice will also be maintained under PSF. 

Budgetary support 

  • Since 2014-15  -2023, the Government has provided budgetary support of Rs.27,489.15 crore for the PSF scheme.
  • The amount has been spent on providing interest-free loans and working capital loans to the central or state agencies that buy such commodities from the farmer.
  • It was also spent on other expenses for procuring and distributing various agricultural and horticultural commodities.

National Agricultural Cooperative Marketing Federation of India Ltd.- NAFED

National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) was established on 2nd October 1958 under the  Union Ministry of Agriculture and Farmers Welfare. Its headquarters is in New Delhi. 

Chairman: Dr. Bijender Singh

National Cooperative Consumers' Federation of India Limited- NCCF

The National Cooperative Consumers' Federation of India Limited (NCCF) was established on 16 October 1965 under the Union Ministry of Consumer Affairs, Food and Public Distribution. 

It is the apex body of consumer cooperatives in the country.

Headquarters: New Delhi.

FAQ

Answer: Wheat and Rice.

Answer: Under the Price Stabilisation Fund (PSF) scheme, buffer stocks of pulses (Urad, Moong, Tur, Masur and Gram), tomato, onion and potatoes are maintained. It will also maintain a stock of rice and wheat.

Answer: Union Ministry of Consumer Affairs, Food and Public Distribution

Answer: 2014-15

Answer: The Price Stabilisation Fund scheme maintains a buffer stock of pulses, tomatoes, potatoes, and onions.
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