Question

34. Explain Buffer Stock and activities related to the creation of Buffer Stock.
​

Answer 1

Answer:

A buffer stock is a system or scheme which buys and

stores stocks at times of good harvests to prevent

prices falling below a target range (or price level),

and releases stocks during bad harvests to prevent

prices rising above a target range (or price level).

Answer 2

Explanation:

Activities related to creation for buffer stock. buffer stock is a stock of food grain mainly wheat and rice collected by the Indian gov. through food corporation of India at a predeclared price from the farmers of areas having surplus production of food grains.