what is buffer stock of food?
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The buffer stock gives the basic and most flexible instrument for moderating short-term effects of supply or production shortfalls. The concept of a buffer stock was first familiarized during the 4th Five Year Plan (1969-74) and a buffer stock of 5 million tonnes of food grains was envisaged.
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Buffer stock refers to 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 food grains, pulses etc. Due to shortage of Onion in market NAFED is maintaining buffer stock of it.
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