PSF runs dry; DOCA to seek ₹5,400 crore

The department of consumer affairs (DoCA) plans to approach the Union finance ministry for about ₹5,400 crore for its price stabilization fund (PSF) to procure onion and pulses in the rest of the financial year, a government official said.

- Puja Das

As prices of vegetables and pulses shot up this year, the department began buying them at steep prices and selling them at cheaper rates. Since the department needs to procure more onions and masur (lentil) to enhance the buffer stock, it has decided to move the finance ministry without waiting for a budget allocation.

“We have a requirement of ₹5,400 crore to purchase onion, tur, urad and masur. We generally receive a self-proceed of ₹200-250 crore every month and utilize the revolving fund for the next operation. We bear some losses when a product is being offered at a subsidized rate. However, when we liquidate stocks, the funds are restored," the official cited above said on condition of anonymity.