What is buffer stock and why is it created?

1.	What is buffer stock and why is it created?
Answer» -Buffer stock is the stock of foodgrains, namely wheat and rice procured by the government through FOOD CORPORATION OF INDIA (FCI) . -The FCI purchases wheat and rice from the farmers in states where there is surplus production. -This is created to distribute foodgrains in the deficit areas and among poorer sections of society at a price lower than the market price.

Answer»

-Buffer stock is the stock of foodgrains, namely wheat and rice procured by the government through FOOD CORPORATION OF INDIA (FCI) .

-The FCI purchases wheat and rice from the farmers in states where there is surplus production.

-This is created to distribute foodgrains in the deficit areas and among poorer sections of society at a price lower than the market price.

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