CBSE Class 12-commerce Answered
what is buffer stock
what is black marketing and rationing system
Asked by rulkrisht22 | 16 Feb, 2019, 01:58: PM
Expert Answer
Buffer stock refers to an amount of physical stock which the Government keeps on hand to protect against unexpected supply and demand variations. It is a stock of food grains (wheat and rice) which is procured by the Government through the Food Corporation of India (FCI). This stock is used to distribute food grains in deficit areas and among poorer strata of society at a lower price than the market price. It is also used at the times of crisis and natural calamities.
Public Distribution system refers to the food procured by FCI which is distributed through Government-regulated ration shops among the poorer sections of society.
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