Buffer stock example sentences

What is Buffer stock? Buffer Stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI).It consists of two components (a) buffer stock and (b) public distribution system (PDS).There is a general consensus that high level of buffer stocks of foodgrains is very undesirable and can be wasteful.Do you know why this buffer stock is created by the government? This is done to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price also known as Issue Price.This system has two components: (a) buffer stock and (b) public distribution system.To ensure availability of food to all sections of the society the Indian government carefully designed food security system, which is composed of two components: (a) buffer stock and (b) public distribution system.