Which of the following is a benefit of buffer stock?

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Financial support to farmers

Provide food security during natural calamities.

Provide food security to poor people.

All of the above.

answer is D.

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Detailed Solution

Financial support to farmers, Providing food security during natural calamities and Providing food security to poor people are the benefits of buffer stock. The Food Corporation of India purchases buffers stock from the farmers at a pre-announced price called the minimum support price. The benefits of buffer stock are:
1)      Financial support to farmers: FCI declares the minimum support price to farmers during the sowing season to encourage them to cultivate more crops. This helps the farmers financially as the market price is often lower than the MSP during the harvest season.
2)      Provide food security during natural calamities: In the case of any natural calamity, the government uses this buffer stock to feed the affected people. This has resulted in no significant famine in India since the Bengal Famine in the 1940s.
3)      Provide food security to poor people: The government supplies this buffer stock to the poor at fixed prices lower than the market prices through rations or fair price shops.

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