| I. It is the practice of holding large stocks by government agencies like Food Corporation of |
| India (FCI) and releasing the stocks in the market to counter price rise |
| II. The buffer stock also helps to maintain the Public Distribution System (PDS). |
A) Only I
B) Only II
C) Both I & II
D) None of the above
Correct Answer: C
Solution :
Buffer stocking, which is the practice of holding large stocks by government agencies like Food Corporation of India (FCI) and releasing the stocks in the market to counter price rise. The buffer stock also helps to maintain the Public Distribution System (PDS).
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