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Q.

Choose given statement True/False:


Buffer stock is maintained by the government of India through FCI.


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a

True

b

False 

answer is A.

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Detailed Solution

The above statement  is true.
Buffer stock is maintained by the government of India through FCI (Food Corporation of India). FCI purchases wheat and rice from farmers for pre-announced prices (Minimum Support Price). The food grains are stored in granaries and distributed to deficit areas and the poor. The price at which they are allocated is lower than the market price and is called the Issue Price. This buffer stock helps in resolving the problem of food shortages during poor weather conditions and calamities.
 
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