The practice of giving Sadaqatul Fitr, also known as Zakat al-Fitr or Fitrana, has been outlined in the Sunnah of Our Beloved Messenger (peace and blessings be upon him) and must be given by every Muslim who is self supporting and has food & provisions in excess of their needs. In addition it must also be given on behalf of one’s own self and their dependants.
The price determined for Sadaqatul Fitr is based on the prices for certain commodities mentioned in the hadiths.