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Q.

Choose the given statement is true/false:

Buffer stock is created by the government to supply food grains in deficit areas.

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a

True

b

False

answer is A.

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Detailed Solution

The above statement is true.
Government creates buffer stock in the areas with surplus grains. This is then supplied to the areas which do not have adequate production of food grains. The government provides this buffer stock to the poor people in these affected areas at a lower rate to afford it. Buffer stock is also very useful in production failure in season or any natural calamity. The government then shifts the buffer stock from other areas to these affected areas. This buffer stock has prevented famine in India since the Bengal Famine in the 1940s.

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