Question

write notes on
Buffer Stack

answer ​

Answer 1

answer:

Buffer stock refers to a reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies. Buffer stock is generally maintained for essential commodities and necessities like foodgrains, pulses etc. The concept of buffer stock was first introduced during the IVth Five Year Plan (1969-74).

Answer 2

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level).

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