Consider the following statements regarding the “price stabilization fund scheme”: 1. It helps to regulate the price volatility of important agri-horticultural commodities. 2. It provides for maintaining a strategic buffer of aforementioned commodities for subsequent calibrated release to moderate price volatility. 3. Department of Agriculture, Cooperation & Famers Welfare (DAC&FW) is the nodal agency to implement the scheme. Which of the statements given above is/are correct?

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: B

Notes:

The Price Stabilization Fund (PSF) was set up in 2014-15 under the Department of Agriculture, Cooperation & Famers Welfare (DAC&FW).

The PSF scheme was later transferred from DAC&FW to the Department of Consumer Affairs (DOCA) in 2016.
The fund is to help regulate the price volatility of important agri-horticultural commodities like onion, and potatoes. Pulses were also added subsequently.

The scheme provides for maintaining a strategic buffer of aforementioned commodities for subsequent calibrated release to moderate price volatility and discourages hoarding and unscrupulous speculation.
For building such stock, the scheme promotes direct purchase from farmers/farmers‘association at farm gate/Mandi.
The PSF is utilized for granting interest free advance of working capital to Central Agencies, State/UT Governments/Agencies to undertake market intervention operations.

Source: PIB