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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.


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