Some of the main reasons to create a buffer stock
- Foodgrains such as wheat and rice, which the government obtains from surplus states through FCI. After that, the food grains are stored in granaries.
- It helps the government to distribute in deficient areas and to the poorest members of society at a significantly lower price than the market price by its Public Distribution System.
- Food shortages caused by natural disasters such as droughts, floods, and earthquakes can be alleviated with buffer stock.
What is Buffer Stock and its Impact on the Rationing System of India?
Buffer stock is an arrangement or scheme in which it is stored during good harvest times so that crop values do not fall below the predetermined minimum limit, and then made accessible when the crop is not excellent and prices are anticipated to rise. strategic stock or safety stock or buffer inventory is another name for the buffer stock. It is utilized for Targeted Public Distribution System distribution as well as dealing with drought, crop failure, and other related emergencies.
The Food Corporation of India was founded in 1965 with the goal of ensuring equitable distribution of food grains and price stability across the country. The corporation procures food grains for the government in order to meet its goals and maintains a food grain buffer stock. The Public Distribution System makes this food grain available for purchase at reasonable prices in fair pricing shops. On January 16, 2015, the Cabinet Committee on Economic Affairs (CCEA) authorized changes to the Buffer Standard Rules for food grains in the Central Pool.