Question

Write notes on:
Buffer stock

Answer 1

Buffer stock − It is the stock of food grains (usually wheat and rice) procured by the government through the Food Corporation of India. The purchased food grains are stored in granaries.

A buffer stock of food grains is created by the government so as to distribute the procured food grains in the food-deficit areas and among the poorer strata of society at a price lower than the market price. A buffer stock helps resolve the problem of shortage of food during adverse weather conditions or during periods of calamity.