• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Buffer Stocks

July 11, 2020
in Agriculture, Economy
Reading Time: 2 mins read
0
2.9k
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF
  • Buffer stock refers to a reserve of a commodity that is used to offset price fluctuations and unforeseen emergencies. It is generally maintained for essential commodities and necessities like food grains, pulses etc.

  • The concept of buffer stock was first introduced during the 4th Five Year Plan (1969-74).
  • Buffer stock of food grains in the Central Pool is maintained by the Government of India (GOI) / Central Government for meeting the prescribed minimum buffer stock norms for food security, monthly release of food grains for supply through Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS), meeting emergency situations arising out of unexpected crop failure, natural disasters, etc., and Price stabilisation or market intervention to augment supply so as to help moderate the open market prices.
  • The Cabinet Committee on Economic Affairs fixes the minimum buffer norms on quarterly basis: i.e. as on 1st April, 1st July, 1st October and 1st January of every financial year.
  • On 15 December 2015, it was decided by the Government to create a buffer stock of pulses of 1.5 lakh tonnes to control fluctuation of prices of pulses.
  • Government has engaged National Agricultural Cooperative Marketing Federation of India Limited (NAFED), Small Farmers Agri-business Consortium (SFAC) and Food Corporation of India (FCI) to procure pulses for buffer stock.
  • In addition to buffer norms, Government of India has prescribed a strategic reserve of 30 lakh tonnes of wheat w.e.f. 01.07.2008 and 20 lakh tonnes of rice w.e.f. 01.01.2009.
  • At present, GoI prefers to use the term – Food grain stocking norms – which refers to the level of stock in the Central Pool that is sufficient to meet the operational requirement of food grains and exigencies at any point of time. Earlier this concept was termed as Buffer Norms and Strategic Reserve.

Presently, stocking norms fixed by Government of India on 22.01.2015 comprise of:

  • Operational stocks: for meeting monthly distributional requirement under TPDS and OWS.
  • Food security stocks/reserves: for meeting shortfall in procurement.
  • While four months requirement of food grains for issue under TPDS and OWS are earmarked as operational stocks, the surplus over that is treated as buffer stock and physically both buffer and operational stocks are merged into one and are not distinguishable.
  • According to the present practice, the GOI treats the food stock over and above the minimum norms as
  • Excess stock and liquidates them from time to time through exports, open market sales or additional allocations to states.
  • The buffer stock figures are normally reviewed after every five years.

 

 

image_pdfMake PDF
Tags: Prelims

Related Posts

World Economic Situation & Prospects report-2023

World Economic Situation & Prospects report-2023

February 3, 2023
What is a Unity mall?

What is a Unity mall?

February 2, 2023
High Net worth Individuals (HNIs)

High Net worth Individuals (HNIs)

February 2, 2023
SUMMARY OF THE INDIAN ECONOMIC SURVEY 2022-23

SUMMARY OF THE INDIAN ECONOMIC SURVEY 2022-23

February 1, 2023
XR Startup Program

XR Startup Program

January 31, 2023
Nau-Anaj (crop)

Nau-Anaj (crop)

January 28, 2023
What is short selling?

What is short selling?

January 28, 2023
The trade-plus-one(T+1) settlement plan

The trade-plus-one(T+1) settlement plan

January 27, 2023
SEBI’s information database on municipal bonds

SEBI’s information database on municipal bonds

January 25, 2023
Kewda oil

Kewda oil

January 24, 2023
Please login to join discussion
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News News Paper Newspaper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In