Question

what is meant by buffer stock?why the governments create buffer stock

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.

Answer 2

buffer stock is the surplus of food grain which is bought by the government from farmers. The government create buffer stock as this stock help in the time where there is food scarcity due natural disasters