New Delhi: The Indian government has expanded its Price Stabilization Fund (PSF) to include wheat and rice amidst escalating prices before the upcoming general elections. The decision comes as part of efforts to curb inflation and maintain stability in essential food commodities.

Previously, the PSF covered only onions, potatoes, and pulses. With the addition of wheat and rice, the fund now encompasses a broader range of staple foods. The PSF operates by building up buffer stocks of these key commodities, which are strategically released into the market during price surges.

Under this initiative, the Food Corporation of India (FCI) will receive subsidies for supplying wheat and rice to central procurement agencies like the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) and the National Cooperative Consumers’ Federation of India (NCCF). The FCI will receive Rs 435 per quintal of wheat and Rs 200 per quintal of rice supplied to these agencies.

The subsidized wheat and rice are sold under the Bharat brand at prices of Rs 27.50 and Rs 29 per kilogram, respectively. Despite these subsidized rates, sales of the Bharat brand have been lackluster.

According to media reports, the move aims to facilitate the provision of essential food items at reasonable prices and discourage hoarding and speculation in the market.

The PSF was established in 2014-15 with an initial corpus of Rs 500 crore. Its primary objectives are to stabilize prices, protect consumers, and support domestic production by incentivizing direct purchases from farmers. Since its inception, the Centre has allocated Rs 27,489 crore towards the scheme.

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