What are the problems associated with high level of buffer stock
Answers
In present scenario, there is major problem in staple food distribution system due to the price volatility of commodity. The shortage of staple food around the world has adversely impacted on the economics, political and social crisis because of food security reason.
Public sector food grain stocks are significant support of India’s food policy and food security. They have three important societal goals.
To provide space for effective implementation of minimum support price for rice and wheat through procurement mechanism.To maintain price stability arising out of year to year fluctuations in output or any other exigency.As a source of supply for public distribution system and various other schemes to sustain food and nutrition security particularly of economically weaker sections.