Economy, asked by ajaybhushan, 1 year ago

explain buffer stock and activities related to creation of buffer stock

Answers

Answered by Sanchihindwan
2
When wheat or any thing is more we can say it buffer stoc k
Answered by shanianvar
12

The stock of grains which is kept for sudden use for eg. A famine strikes or an earthquake comes and all grains or eating stuff gets damaged then this extra stored stock is used, is called buffer stock.

Due to the following reasons, buffer stock is created by the government  

(i) A buffer stock of food grains is created by the government, so that it can be distributed in food deficit areas and among the poorer strata of society at a price much lower than the market price.

(ii) A buffer stock also helps to resolve the problem1’ of food shortage during adverse weather conditions, a disaster or a calamity.

(iii) Maintaining buffer stock is a step taken by the government in order to ensure food security.

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