1.

(b) What is a buffer stock? Why does every government need to maintain a buffer stock?Ans.

Answer»

A supply of inputs held as a reserve to safeguard against unforeseen shortages or demands is called buffer stock.

The government maintains a buffer stock because the grains are totally considered with plenty of feed to the country.

This deserves the shortfall in production and usually happens due to natural calamity like monsoon failure.

The government has to take steps for maintaining buffer of foods grains and provide food to people.



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