Mention three reasons why buffer stock is created by the Government of India.
Answers
A buffer stock of food grains is created by the Government for the following reasons:
1. So that food grains can be distributed to the food deficit areas and sold among the poorer strata at a price lower than the market price.
2. A buffer stock helps to resolve the problem of food shortage at the time of a disaster or calamity, or during adverse weather.
3. A buffer stock is maintained in order to ensure food security.
The government created the buffer stock of food grains due to following reasons:
1) In order to resolve the food shortage problem during adverse weather conditions.
2) To distribute food grains (like wheat grain) in the deficit areas. This is done to ensure availability of food in each area of the country.
3) To stabilize prices of the grains.
Buffer stock means stock of grains. Usually, the term “buffer stock of foodgrains” is used for wheat and rice grains stock.