Answer:
Buffer
stock is the stock of food grains, namely wheat and rice procured by the
government through Food Corporation of India (FCI).
(i) The FCI purchases wheat and rice from the farmers in states where there
is surplus production.
(ii) The farmers are paid a pre-announced price for their
crops. This price is called Minimum Support Price (MSP).
(iii) The MSP is declared by the government every year,
before the sowing season to provide incentives to the farmers for raising the
production of these crops.
(iv) The purchased food grains are stored in granaries by
the government.
(v) This is done to distribute food grains in the deficit
areas and among the poorer strata of society, at a price lower than the market
price also known as Issue Price.
(vi) This also helps resolve the problem of shortage of
food during adverse weather conditions or during the periods of calamity.
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