| Sent for approval of the Cabinet Committee of Economic Affairs (CCEA), the proposals also include the introduction of two distress triggers, enhanced scale of financial assistance, relaxation in withdrawal from PSF savings bank accounts during distress years by growers, continuation of the personal accident insurance scheme for grower-members and the option of restructured PSF scheme to tobacco growers, among others. |
| As per the estimates, in the worst case scenario of all the four commodities facing an extreme distress year, the scheme pay out will be of the order of Rs 171.17 crore. The agriculture ministry also has plans to seek CCEA approval for modifications in the quantum of financial assistance to growers in such a situation, based on the availability of resources with the PSF trust. |
| Over 3.42 lakh tea, rubber, coffee and tobacco growers (out of the total 12.77 lakh) are targeted to be covered by the scheme, which was launched in April 2003 and will remain in force till March 2013. Its objective is to safeguard growers' interest and provide financial relief when prices fall below a specified level and provide long-term support to growers in place of ad hoc interventions during a crisis. |
| In its current form, the scheme saw low enrollment as the payouts from the PSF trust to the grower-members was not perceived in anyway to "stabilise" the commodity prices and the quantum of financial assistance (ranging from Rs 500-1,000) was considered to be too little by growers. The scheme will not have any immediate additional funding requirements. |
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