Question

what is buffer stock why was it created by the government​

Answer 1

Hey mate!

I am here with your 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. Specifically, commodities are bought when a surplus exists in the economy, stored, and are then sold from these stores when economic shortages in the economy occur.

Hope this will help you!

Answer 2

buffer stock - A buffer stock of food grains is created by the Government for the following reasons: 1. So that food grains can be distributed to the food deficit areas and sold among the poorer strata at a price lower than the market price.

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