Question

What is Buffer stock explain in brief .

Answer 1

Explanation:

Buffer stock.....

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level).

Answer 2

ANSWER

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Buffer atock is the stock of food grains, namely wheat and rice, procured by the government through the food corporation of India (F.C.I).

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Buffer stock is maintained for purposes like :-

1.To distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price. This is known as issue price.

2.To resolve the probelem of food shortage during adverse weather conditions during the period of calamity.

3.To meet prescribed minimum buffer stock norms for food security. The stock position of foodgrains was increased.

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