What is meant by Buffer stock?

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Buffer stock is the stock of food grains (e.g, wheat, rice, etc.) procured by the government through Food Corporation of India (FCI). It is created in order to distribute food grains in deficit areas and among poorer section of society at an affordable price. Government has created buffer stock for the...
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Buffer stock is the stock of food grains (e.g, wheat, rice, etc.) procured by the government through Food Corporation of India (FCI). It is created in order to distribute food grains in deficit areas and among poorer section of society at an affordable price. Government has created buffer stock for the following reason (i) Food grains like wheat and rice and procured by the government through FCI from surplus states. This food grains is then stored in granaries. (ii) Government has created buffer stock to distribute these food grains in deficit areas and among the poor section of society at much lower price than market price. (iii) It helps to resolve the problem of shortage of food during adverse weather condition. read less
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Buffer stock is the stock of foodgrains procured (like purchased) by Food Corporation of India (FCI) form the farmers. This stock is later used by the government for providing foodgrains to poor under Public Distribution System(PDS) via PDS shops.
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