Question

Why is the stock created by the government? Give any 3 reasons why?

Answer 1

Due to the following reasons, buffer stock is created by the government

(i) 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.

(ii) A buffer stock also helps to resolve the problem1’ of food shortage during adverse weather conditions, a disaster or a calamity.

(iii) Maintaining buffer stock is a step taken by the government in order to ensure food security.