The government creates buffer stock to distribute food grains in the deficit areas and among the poorer strata of society at a price lower than the market price it is known as ____.

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Detailed Solution

The government creates buffer stock to distribute food grains in the deficit areas and among the poorer strata of society at a price lower than the market price. It is known as the issue price.
The price at which the government sells food supplies to underprivileged groups is the issue price.
The market price for food ingredients is less high than the issue price. The government purchases food grains from the buffer stock. Issue price enables the poor to purchase necessary food items at lower costs. By increasing accessibility and affordability, even those below the poverty line can access food. For instance, the applicable price for common rice in the states of J&K, Himachal Pradesh, Sikkim, Uttaranchal, and the NE States is Rs. 795 per quintal. Government.

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