Question

what is buffer stock? how is it created? why is buffer stock created by the goverment?

Answer 1

Due to the following reasons, buffer stock is created by the government
(i) A buffer stock of food grains is created by the government, so that it can be distributed in food deficit areas and among the poorer strata of society at a price much lower than the market price.
(ii) A buffer stock also helps to resolve the problem1’ of food shortage during adverse weather conditions, a disaster or a calamity.
(iii) Maintaining buffer stock is a step taken by the government in order to ensure food security.

Answer 2

Buffer stock is a stock where wheat and grains are kept for further use.

Buffer stock is created by govt. to give grains to poor people at very low price.

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