The fund was established with to mitigate volatility in the prices of agriculture produce. It was established with a corpus of 500 Crore which aims at price stability. The fund will be utilised for following purpose:
- Direct purchase from farmers at farm gate
- Maintaining a strategic buffer stock 0 576 512"> Subscribe on YouTube
that would discouraged hoarding and unscrupulous speculation.
To safeguard the interest of consumers by supplying such commodities at reasonable prices.To support market intervention for price control of perishable agri- horticultural commodities.The state will have to set up a revolving fund to which centre and state will contribute equally. The same ratio will be 75:25 in North eastern states.
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