What do we call the stock of food grains purchased by the Government of India from the farmers through the Food Corporation of India (FCI)?

Question

Question

This question was previously asked in

SSC GD Previous Paper 23 (Held On: 1 March 2019 Shift 2)_English

Answer 1

The correct answer is Buffer Stock.

Key Points

Buffer stock refers to a reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies.
Buffer stock is generally maintained for essential commodities and necessities like foodgrains, pulses etc.

Important Points

A buffer stock of food grains in the Central Pool is maintained by the Government of India (GOI) / Central Government for:
- Meeting the prescribed minimum buffer stock norms for food security.
- The monthly release of food grains for supply through the Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS).
- Meeting emergency situations arising out of unexpected crop failure, natural disasters, etc.
- Price stabilization or market intervention to augment supply so as to help moderate the open market prices.