The Price Spectrum Band for each commodity has been calculated on the basis of Seven Years' Moving average of International price for the commodity. The annual average domestic price for Tea was Rs.102.83/kg during 2009 and it has been categorised as 'Boom Year” for Tea. The annual average domestic price for Coffee Arabica during 2009 was Rs.175.32/kg and it has been categorised as 'Boom Year” for Coffee Arabica. The annual average domestic price for Coffee Robusta was Rs.81.10/kg during 2009 and it has been categorised as 'Boom Year” for Coffee Robusta. The annual average domestic price for Rubber was Rs.97.56/kg during 2009 and it has been categorised as “Normal Year” for Rubber. As no tobacco grower was enrolled under the scheme, Price Spectrum Band for tobacco has not been fixed.

Department of Commerce launched the Price Stabilisation Fund Scheme in April 2003 for the benefit of growers of Tea, Coffee, Natural Rubber and Tobacco. The objective of the Price Stabilisation Fund Scheme is to provide financial relief to the growers when the prices of these commodities fall below a specified level.

The scheme is based on the principle of contribution from the growers and from the Government depending upon boom / normal / distress years, with a provision for withdrawal by the growers during the distress year. The contribution of the participant grower as well as that of the Government is credited to the savings bank account of the participant grower opened for this purpose with nationalised bank.