Question

What is buffer stock? Why is buffer stock is created by the government?

Accepted Answer

Buffer stock is the stock of food grains (e.g., wheat, rice, etc.) procured by the government through the Food Corporation of India (FCI). It is created to distribute food grains in deficit areas and among a poorer section of society at an affordable price.

The FCI purchases wheat and rice from the farmers in states where there is surplus production. The procured food grains are stored in granaries. It is purchased to distribute food grains in the deficit area and among the poorer strata of society at a price lower than the market price also known as Issue Price. Buffer stock helps to resolve the problem of shortage of food during adverse weather conditions or periods of calamity.

What is buffer stock? Why is buffer stock is created by the government?

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