The FCI purchases wheat and rice from the farmers in states where there is surplus production. The farmers are paid a pre-announced price for their crops. This price is called Minimum Support Price (MSP). Buffer stock is maintained to distribute foodgrains in the deficit areas and among the poorer strata of the society at a price lower than the market price also known as Issue Price.
Further Reading:
| Related Links | |
| National Food Security Act | Food and Agriculture Organisation (FAO) |
| Vertical Farming: Origins, Advantages | Economics Questions for UPSC Mains GS 3 |
| FAQ on UPSC | IAS Exam |
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