Par panel asks govt to merge PSS & PSF schemes at earliest

A Parliament panel on Tuesday asked the government to take a decision on merging two schemes -- Price Stabilisation Fund (PSF) and Price Support Scheme (PSS) at the earliest to efficiently tackling price volatility.

The Standing Committee on Consumer Affairs, Food and Public Distribution made this recommended in a report tabled in Parliament regarding Demand for Grants for the Department of Consumer Affairs.

Merger of the two schemes was recommended by the government think tank, Niti Aayog, which later was considered by inter-ministerial consultations between three departments concerned -- Agriculture, Food and Consumer Affairs.

Price Support Scheme (PSS), implemented by the Agriculture Ministry, is operationalised only when prices of agri-produce fall below the minimum support price (MSP).

On the other hand, Price Stabilisation Fund (PSF), which is under the Food and Consumer Affairs Ministry, commodities are purchased at market prices.

On the status of merger, the Department of Consumer Affairs informed the panel that an inter-ministerial committee has suggested to formulate a ''combined scheme'' for price support and buffer management by combining PSS and PSF schemes to be implemented by a single ministry, which is agriculture.

It also suggested that the modus operandi pertaining to buffer norms and management to remain under administrative control of the Department of Consumer Affairs.

Further, the inter-ministerial committee also decided that ''till the final approval is obtained from the Cabinet, status quo may be maintained for implementing PSS and PSF...'' It also suggested extension of Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) till September 2023 so that procurement of pulses and oilseeds is not hampered during the ensuing Rabi season.

To this, the Parliamentary panel said, ''...a decision in the matter should be arrived at the earliest so that the government is ready to tackle any possible price volatility and the committee may be apprised about the progress made in the matter.'' A token amount of Rs 0.01 crore has been allocated for PSF for the 2023-24 fiscal, according to the report.