Question

what is buffer stock ? why does government create it ? name the agency which procure it on the behalf of the government?

Answer 1

Buffer stock is the stock of foodgrains, usually wheat and rice , procured by the government of India through Food Corporation of India ( FCI) at a predeclared price, Minimum Support Price ( MSP), from the farmers of areas where there is a surplus production.

Buffer stock was created for the distribution of food grains in the deficit areas and among the poorer strata of the society at a price lower than the market price also known as issue price. This also helps resolve the problem of shortage of food grains during the adverse weather conditions or during the period of calamity.

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Answer 2

The stock of food grains mainly wheat and rice procured and maintained by the government through Food corporation of India is called buffer stock.