What is meant by "buffer stock"?

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It is the stock of foodgrains procured by FCI.

It is the stock of money procured by FCI.

It is the stock of potatoes and onions procured by the FCI.

It is the stock of sugar procured by the FCI.

answer is A.

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Detailed Solution

Buffer stock is the stock of foodgrains procured by FCI.

To maintain food security in the country at all points in time, the government has implemented two systems, namely the buffer stock and the public distribution system.

Buffer stock is the stock of food grains, mainly wheat and rice, and the government procures that through the operations of the Food Corporation of India.

The FCI purchases wheat and rice from the states where farmers have surplus production.

Farmers are paid a pre-announced price for their crops, also called the minimum support price, and the purchased food grains are stored in huge granaries under government control as a buffer stock to utilize for future needs.

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