Describe the term 'Buffer stock
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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).
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Buffer stock refers to an amount of physical stock which the Government keeps on hand to protect against unexpected supply and demand variations. ... This stock is used to distribute food grains in deficit areas and among poorer strata of society at a lower price than the market price.
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