| With reference to buffer stock of foodgrains, consider the following statements. |
| 1. Buffer stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI). |
| 2. Buffer stock are required to stabilise prices during period of production shortfall through open market sales. |
| 3. The seasonality of production and procurement is a decisive factor in determining the mininuun norm of foodgrains stocks required in a particular quarter of the year. |
| 4. In addition to buffer norms, government has prescribed strategic reserve of wheat and rice. |
| Which of the statement given above is/are incorrect? |
A) Only 2
B) Only 3
C) 2 and 4
D) None of these
Correct Answer: D
Solution :
[d] The buffer stocks are required to 1. Feed TPDS and other welfare schemes. 2. Ensure food security during the periods when production is short of normal demand during bad agricultural years. 3. Stabilise prices during period of production short fall through 3pen market sales. The total annual stock of foodgrains in the cultural pool is distributed over different quarters of the year depending upon off take and procurement patterns.
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