Why buffer stock is created by the government?



Answer to be written in the exam:  

  • A buffer stock of food grains is created by the government so that it can 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 Issue Price.

  • This also helps resolve the problem of shortage of food during adverse weather conditions or during the periods of calamity.
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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.