- Definition: PSF was set up in 2014-15 under the Department of Consumer Affairs.
- Help in Price Stabilization:
- Helps regulate price volatility of important agri-horticultural commodities (onion, potatoes, pulses).
- Provides for maintaining a strategic buffer of these commodities.
- Allows for subsequent calibrated release to moderate price volatility.
- Discourages hoarding and unscrupulous speculation.
- Promotes direct purchase from farmers/farmers’ associations.
- Utilized for granting interest-free advance of working capital to central agencies (NAFED, SFAC) and states.