Question

Q13. India maintains buffer stocks of food grains. The buffer stocks helps in
1. Providing food security 2. Incentivizing farmers
3. Stabilizing prices 4. Running PDS
Select the correct answer using the codes given below.

• A. (a) Only 1, 2 and 3
• B. (b) Only 1, 3 and 4
• C. (c) Only 2, 3 and 4
• D. (d) Only 1, 2 and 4

Answer 1

The correct option is B (b) Only 1, 3 and 4

Incentivizing farmers – This is done by announcing the minimum support prices (MSP) and other schemes like price stabilization fund schemes for plantation crops. The buffer stocks helps in providing food through the PDS, thus ensuring food security. It also acts as a cushion during price rises due to shortfall, thus helping in stabilizing prices.