It was first introduced in the 2018-2019 Union budget of India,[1] and has been allocated Rs 500 crores to promote farmer producers' organisations (FPOs), agri-logistics, processing facilities and professional management.
The National Agricultural Cooperative Marketing Federation of India is the principal agency placed in charge of implementing the price stabilisation measures.
[7] These measures have been put in place in the hopes that by subsidising the costs, farmers will be able to turn a higher profit.
When the production of such crops increase, prices collapse and farmers do not have enough storage capacity and links to organised retailing is small.
[5] The aim is to increase profits for the farmers by reducing losses post-harvest in the hope that this will stabilise the supply of crops.