Question

What is Buffer Stock’?

Answer 1

Buffer stock is the stock of food grains (e.g., wheat,rice etc.) procured by the government through Food Corporation of India (FCI)

Answer 2

"Supply of inputs held as a reserve to safeguard against unforeseen shortages or demands.

A buffer stock scheme (commonly implemented as intervention storage, the ""ever-normal granary"") is an attempt to use commodity storage for the purposes of stabilising prices in an entire economy or, more commonly, an individual (commodity) 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."