Which of the following organizations deals with the buffer stock in India?

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Food Corporation of India

Cooperative Banks

Both 1 and 2

None of these

answer is A.

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Detailed Solution

Food Corporation of India (FCI) deals with the buffer stock in India.
Buffer stock is maintained by the government of India through the Food Corporation of India (FCI). The main reason why the government maintains a buffer stock is that it helps eliminate the problem of food insecurity among poor people and in deficit areas. It also helps in resolving the issue of food shortages during any natural calamity or adverse weather conditions. This buffer stock is sold at an issue price that is lower than the market price, whereas the stock is purchased at a Minimum Support Price (MSP), which is declared by the government every year. FCI is responsible for buying wheat and stock from farmers in states where there is surplus production.

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