write notes on buffer stock
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Buffer stock refers to a reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies.
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Buffer stock:
- It is a system in which the government of India obtains good grains from cultivators when production level is high to make sure that the costs of food grains do not go so low that farmers incur a loss.
- It also helps in ensuring the accessibility of food cereals even if farmers are unable to grow the required level of food grains in a particular year.
- It controls the prices increasing above a level in case of bad harvestings are experienced by the nation. It also saves the food grains from being wasted.
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