Question

what is buffer stock ! ​

Answer 1

Explanation:

A buffer stock scheme is an attempt to use commodity storage for the purposes of stabilising prices in an entire economy or an individual market. Specifically, commodities are bought when a surplus exists in the economy, stored, and are then sold from these stores when economic shortages in the economy occur.

Answer 2

Answer

Buffer stock is the stock of food grains mainly wheat and rice , produced by the government through the Food Corporation of India . the Food Corporation of India purchased wheat and rice from the farmers in States where there is surplus production . the farmer and paid a free announce the price for their crops . this price is called minimum support price . the minimum support price is declared by the government every year before the showing season to provide incentives to farmer for raising their production to these crops .

• the Purchase Food grade are stored in granaries .

why this buffer stock is created by government?

• this is done to distribute food grain in the Dificit areas and among the poorer strata of the society at a price lower than the market price known as issue price .

• this also helps resolve the problem of shortage of food during the adverse weather conditions or during the period of calamity .