Price Stabilization Fund

A Price Stabilization Fund is a financial tool used by governments or organizations to help maintain stable prices for essential commodities like grains, sugar, or fertilizers. When market prices drop too low, the fund offers support to prevent farmers and producers from suffering losses. Conversely, if prices rise excessively, the fund can help stabilize them by buying supplies or releasing reserves. This ensures farmers receive fair income and consumers pay stable prices, reducing economic volatility and encouraging consistent production and supply of vital goods.