Marginal hike likely for fund to build farm produce buffer

Budget may increase outlay for supporting the procurement of pulses, onions and potatoes

- Dhirendra Kumar

The budgetary allocation for the Price Stabilization Fund (PSF), established to build buffer stocks of farm produce and check sudden rises in food prices, may see a marginal increase in the upcoming budget for FY26.

The department of consumer affairs is expected to receive an increase of up to 3%, bringing its allocation to ₹10,300 crore, according to two people aware of the matter.

This increase for FY26 is aimed at supporting the procurement of pulses, onions, and potatoes for buffer stocks, given the estimated rise in the production of key staple food items.

The government procures pulses such as chana, tur, masur, urad and whole chana for buffer stocks, either directly from farmers or, in case of crop losses, from imports.

"There will be a marginal increase in the budgetary allocation for the department of consumer affairs to support ongoing schemes," said the first person.