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What is Buffer stock?
-
Buffer Stock is the stock of foodgrains
, namely
wheat and rice,
procured by the government
through the Food Corporation of India (FCI).
-
The FCI
purchases wheat and rice from the farmers i
n states where there is surplus production.
-
The
farmers are paid a preannounced price for their crops
. This price is called
Minimum Support Price (MSP).
-
The
MSP is declared by the government
every year before the sowing season to provide incentives to farmers for raising the production of these crops.
- This is done to distribute foodgrains in the deficit areas and among the poorer strata of the society at a price lower than the market price also known as the Issue Price
