Why is a buffer stock created by the government?

Question.

Why is a buffer stock created by the government?


Solution:

A buffer stock of food grains is created by the government so as to distribute the procured food grains in the food-deficit areas and among the poorer strata of society at a price lower than the market price. A buffer stock helps resolve the problem of shortage of food during adverse weather conditions or during periods of calamity.

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Amuthan
Feb. 17, 2024, 6:35 a.m.
Super thus is helpful for me
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