Question

Pls tell the correct answer as I am looking for.

Answer 1

a) A high level of buffer stock of food grains has the following undesirable problems
(i) Since these food grains are procured by the government at a high Minimum Support Price (government keeps the price high to give incentive to the farmers to grow more), it means more carrying costs for the government.
(ii) As storage space is inadequate, many times the excess procured grain is stored in the open, causing deterioration in quality and infestation by rodents, which can cause diseases in people consuming this grain.
(iii) In case of adverse weather conditions like rain falling on the grain stored in the open, much of the stored grain is destroyed and thus it is wasted.
(b) From the given statement I have learnt that proper planning and management of stock is essential before maintaining it.

Answer 2

Answer:

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