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Q.

What is the stock of foodgrains to allocate to the food deficit areas known?


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a

Available stock

b

Minimum support stock

c

Buffer stock

d

Food stock  

answer is C.

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Detailed Solution

A buffer stock is a stock of food grains bought by the government from farmers at a pre-announced price. This pre-announced price is known as the
Minimum Support Price (MSP) promotes farmers' cultivation of food crops. On the
another hand, this buffer stock of foodgrains is then distributed via PDS, also known as the public
distribution system by Food Corporation India to poorer and deficit sections of society at the issue
price, which is lower than the market price.
 
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What is the stock of foodgrains to allocate to the food deficit areas known?