Question

What is Buffer Stock? Why is it created by the government????​

Answer 1

Answer:

A buffer stock scheme is an attempt to use commodity storage for the purposes of stabilising prices in an entire economy or an individual market.

It is created by the government so that it can be distributed in the food deficit areas and among the poorer strata of the society at a price much lower than the market price.

Explanation:

Hope it helps

Answer 2

$\huge\bold\color{red}{\boxed{answer}}$

(i) Buffer stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI). The FCI purchases wheat and rice from the farmers in states where there is surplus production. The purchased foodgrains are stored in granaries.

(ii) Thus, buffer stock is created by the government to distribute these foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price.

(iii) Buffer stock also helps resolve the problem of shortage of food during adverse weather conditions.

HOPE ITS HELPFUL.....:-)