Question

What is buffer stock? In long one page explanation.​

Answer 1

What is buffer stock?

=> A reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies.

• Buffer stock is generally maintained for essential commodities and necessities like foodgrains, pulses etc.
• Buffer Stock Policy of the Government of India.

The government created the buffer stock of food grains due to following reasons:

1. In order to resolve the food shortage problem during adverse weather conditions.
2. To distribute food grains (like wheat grain) in the deficit areas.

Answer 2

Hi Mate,

buffer stock is the stock of food grains procured by the government through Food Corporation Of India (FCI). it is created in order to distribute food grains and deficit areas and among poorer section of society at an affordable price.

government created buffer stock for the following reasons:

1. food grains like wheat and rice and procured by the government through FCI from Surplus States. This food grains is then stored in granaries.

2. government has created buffer stock to distribute the food grains in deficit areas and among the poorest section of society at much lower price in market price.

3. it it helps to resolve the problem of shortage of food during adverse weather condition.

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