Question

Mention two reasons behind excessive buffer stocks of food grains state three consequences of excess reserves of foodgrains in india please answer

Answer 1

The two reasons are-

1. So that the foodgrains can be distributed to the food deficit areas and sold among poorer strata at lower price.

2. Excessive buffer stocks can be send to the calamity prone area or where there is a shortage of particular type of crop.

THREE CONSEQUENCES OF EXCESSIVE RESOURCES OF FOOD GRAINS ARE-

1. It has raised economic costs.

2. Many grains either get rotten or end up being eaten by rats or rodents.

3. It has adversely affected the foodgrains prices.