Question

Main purpose of buffer stock scheme is :-

a. To save food grains from pest attack
b. To stop price fluctions
c. To meets the crisis of low production
d. Both (b) and (c)​

Answer 1

Answer:

both (b)and(c)

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Answer 2

Answer: The correct answer is d that is the main purpose of buffer stock scheme is to stop price fluctuations and to meet the crisis of low production.

Explanation:

• To ensure that grains remain available in abundance even if there is a short fall in production in a given year, such as owing to monsoon failure, a surplus supply known as buffer stock is maintained.

• A buffer stock scheme is an effort to employ commodity storage to stabilise prices in a whole economy or a specific (commodity) market.
• It is frequently implemented as intervention storage, the "ever-normal granary."
• Food security is ensured by buffer stock in the following ways:
  (i) It provides foodgrains at a price below market value to the poorer sections of society and the deficit areas.
  (ii) It also aids in resolving the issue of food scarcity during inclement weather or during times of disaster.

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