Summary
Four parts work together: buying crops, a fund to smooth price swings, payments for price gaps, and help for fast‑spoil foods.
When market prices fall, the government buys pulses, oilseeds and coconut through agencies like the National Agricultural Cooperative Marketing Federation of India.
If crops aren’t bought, farmers receive the difference between the Minimum Support Price and the market price directly in their bank accounts.
A Price Stabilization Fund stores extra vegetables like onions and potatoes to release them when prices rise.
New digital systems such as Aadhaar identity checks and online market platforms make the process transparent.