Explanation:

exp: Price Stabilisation Fund (PSF) refers to any fund constituted for the purpose of containing extreme volatility in prices of selected commodities. The amount in the fund is generally utilised for activities aimed at bringing down/up the high/low prices say for instance, procurement of such products and distribution of the same as and when required, so that prices remain in a range.
Many countries use such dedicated funds for stabilisation of major petroleum product prices, particularly if they are importers. Some countries use such funds for stabilising not just commodity prices but a variety of key macroeconomic variables such as the exchange rate (which is nothing but the price of the domestic currency expressed in terms of an external currency), benchmark stock indices etc. The operational details of such funds vary from country to country.
India first created a price stabilisation fund for some export oriented plantation crops in 2003, and this ceased to exist in 2013. Another fund was created in 2015 for perishable agricultural and horticultural commodities, but initially limited to support potato and onion prices only.