why government buys and stores some grain
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(i) because if there is any natural disaster due to which crops could not be grown then the stored grains could be used
(ii) if there is food shortage then those stored grains could be used
(ii) if there is food shortage then those stored grains could be used
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During harvesting time, if there is an increase in the supply, then the price will be low. This causes the farmers not to get a suitable price for the grains.
The government has fixed the MSP at which the farmers can sell their grains to the government if they want to. So the government has to buy some food grains. Because of MSP, farmers will get a little bit of profit.
The government stores these food grains in FCI. These are supplied to ration shops and other government schemes(i.e., midday meals in schools)
Explanation:
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