Why is it in the news?

• The government recently approved the inclusion of wheat and rice under its Price Stabilization Fund (PSF).

 More about the news

• The PSF aims to regulate the price volatility of key agri-horticultural commodities such as onion, potatoes, pulses, wheat, and rice.
• It provides interest-free advances of working capital to Central Agencies, State/UT Governments, and other relevant agencies for conducting market intervention operations.
• The PSF facilitates domestic procurement from farmers and wholesale mandis to stabilize prices within a certain range.
• Import operations may be undertaken with support from the PSF when necessary to stabilize prices or address shortages of the selected commodities.