Question

What is buffer stock why was it created by the government how government generate this?

Answer 1

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Answer 2

Buffer stock means a reserve of a community that can be used to offset price fluctuations.

Due to the following reasons, buffer stock is created by the government;
¤ A buffer stock of food grains is created by the government, so that it can be distributed in food deficit areas and among the poorer strata of society at a price much lower than the market price.
¤ A buffer stock also helps to resolve the problem 1' of food shortage during adverse weather conditions, a disaster or a calamity.
¤ Maintaining buffer stock is a step taken by the government in order to ensure food security.