Question

what is buffer stock in why is it created by the government

Answer 1

hello Frnd


Here is your answer ..


Since we know that future is uncertain and there could be any mishapping or Natural disasters therefore we need to make certain provisions or reserve so that we can face the future problems.


◆What is Buffer Stock ?

Buffer Stock is the reserve of consumable food commodities which the Govt. Of India Maintains. Buffer Stock is created every year by the Govt, which Includes Food grains like Wheat, Rice and lentils.


⚫Need of buffer Stock

➡To meet the future requirements of ensuring the food security in India.

There are many conditions in which corps are either destroyed by heavy rains or drought affects the certain regions of country.
In that case Govt. Has to ensure the food security and for this they use buffer stock to make food grains available to that region.


e.g. When Uttrakhand was affected by the flood, Govt provide food grains to them from the buffer Stock.


➡To control the price fluctuations

Sometimes the price of Food grains goes very high and It becomes difficult for a poor to buy that commodities.

In that case Govt release the food grains from BUFFER STOCK to increase the supply of Food grains in the market and control the price.



hope it helps
jerri