ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Exporting
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Public Distribution
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Meeting urgent needs during a period of low output and scarcity
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Both for Public distribution and meeting urgent needs during a period of low output and scarcity.
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Detailed explanation-1: -Meaning of buffer stock in English that is bought and stored when extra is available, and sold when there is not enough, in order to control its price and quantity in the economy: Rubber prices fell to a four-year low, despite purchases for the buffer stock. Want to learn more?
Detailed explanation-2: -Buffer Stock The government fixes an MSP (Minimum Support Price) to buy the foodgrains. MSP is revised from time to time. A part of this buffer stock is utilised to supply foodgrains to poor people at subsidized rates. This is done through the PDS (Public Distribution System).
Detailed explanation-3: -An extra stock called buffer stock is maintained so that grains are available in plenty even if there is a short fall in production in a particular year, for example due to monsoon failure.
Detailed explanation-4: -It is an Indian food Security System established under the Ministry of Consumer Affairs, Food, and Public Distribution.It helps in ensuring the Food and Nutritional Security of the nation.It maintains the buffer stock of food grains in the warehouse.