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
Ask a doubt
Davneet Singh's photo - Co-founder, Teachoo

Made by

Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.