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SAI INTERNATIONAL SCHOOL
SESSION 2020-21
CLASS-IX
ECONOMICS- CHAPTER-4 FOOD SECURITY IN INDIA
LESSON NOTES
SUB TOPIC-3
Food security in India, What is Buffer Stock
Food Security in India
Since the Green Revolution, the country has avoided famine even during
adverse weather conditions.
India has become self-sufficient in food grains during the last 30 years
because of a variety of crops grown all over the country.
The availability of food grains has been ensured with a carefully designed
food security system by the
government.
This system has two
components:
(a) buffer stock, and
(b) public distribution
system.
What is Buffer stock?
Buffer Stock is the stock of food grains, namely wheat and rice, procured by
the government through the Food Corporation of India (FCI).
The stock of wheat and rice are purchased by the FCI from the farmers where
there is surplus production.
The farmers are paid a pre announced price for their crops, called Minimum
Support Price (MSP).
Every year, the MSP is declared by the government before the sowing season
to provide incentives to farmers for raising the production of these crops.
Buffer Stock is created to distribute foodgrains in the deficit areas and among
the poorer section of the society at a price lower than the market price also
known as Issue Price.