What is a buffer stock?
What is a buffer stock?
The Indian Food Security System designed by the Government of India has 2 components. One is the Buffer Stock and the other is the Public Distribution System.
Buffer Stock
The stock of foodgrains, namely rice and wheat, procured by the Government through the Food Corporation of India (FCI) is known as the Buffer Stock. The purchased food grains are stored in granaries.
- The Food Corporation of India (FCI) purchases rice and wheat from the farmers in states which have surplus production.
- The farmers are paid the Minimum Support Price (MSP).
- Minimum Support Price (MSP) is a pre-announced price paid to the farmers for their crops.
- Every year, before the sowing season, the Government announces the Minimum Support Price (MSP). To raise the production by farmers, this is a type of incentive given to the farmers.
Reason for creation of Buffer Stock by the Government
- Buffer stock will help in resolving the food shortage issues faced during natural calamities like droughts, floods, earthquakes etc.
- Buffer stock is used to meet the food requirements of poorer strata of society, by selling the food grains at lower price when compared to market price. This is known as Issue Price.
Public Distribution System
The second component of food security designed by the Government is the Public Distribution System.
- Public Distribution System is a system where poorer sections of the society can procure food from the Government regulated ration shops, which in turn receives the food supply from Food Corporation of India (FCI).
- In these ration shops people can buy the food items at a price lower than the market price.
- Ration shops are also known as Fair Price shops.
- The Public Distribution System coverage was universal. It evolved as a universal scheme in 1970’s. It was functioning till 1992.
- In 1992, PDS was relaunched as Revamped Public Distribution System (RPDS). Its coverage area was 1700 backward blocks.
- With the principle of targeting the poor in all areas, the Targeted Public Distribution System (TPDS) was launched in 1997.
- TPDS is jointly operated by the Central Government and State Government.
- Targeted Public Distribution System (TPDS) focused on people Above Poverty Line (APL) and Below Poverty Line (BPL).
Role of Central Government in Targeted Public Distribution System (TPDS)
In the Targeted Public Distribution System (TPDS), the role of the Central Government is
- The allocation of food grains
- Procurement, and Transportation of food grains to Food Corporation of India (FCI)
Role of State Government in Targeted Public Distribution System
In Targeted Public Distribution System (TPDS), the role of the State Government is
- Identifying beneficiaries
- Issuing ration cards
- Allocation, and distribution of food grains
The Indian Food Security System designed by the Government of India has 2 components. One is the Buffer Stock and the other is the Public Distribution System.
Buffer Stock
The stock of foodgrains, namely rice and wheat, procured by the Government through the Food Corporation of India (FCI) is known as the Buffer Stock. The purchased food grains are stored in granaries.
- The Food Corporation of India (FCI) purchases rice and wheat from the farmers in states which have surplus production.
- The farmers are paid the Minimum Support Price (MSP).
- Minimum Support Price (MSP) is a pre-announced price paid to the farmers for their crops.
- Every year, before the sowing season, the Government announces the Minimum Support Price (MSP). To raise the production by farmers, this is a type of incentive given to the farmers.
Reason for creation of Buffer Stock by the Government
- Buffer stock will help in resolving the food shortage issues faced during natural calamities like droughts, floods, earthquakes etc.
- Buffer stock is used to meet the food requirements of poorer strata of society, by selling the food grains at lower price when compared to market price. This is known as Issue Price.
Public Distribution System
The second component of food security designed by the Government is the Public Distribution System.
- Public Distribution System is a system where poorer sections of the society can procure food from the Government regulated ration shops, which in turn receives the food supply from Food Corporation of India (FCI).
- In these ration shops people can buy the food items at a price lower than the market price.
- Ration shops are also known as Fair Price shops.
- The Public Distribution System coverage was universal. It evolved as a universal scheme in 1970’s. It was functioning till 1992.
- In 1992, PDS was relaunched as Revamped Public Distribution System (RPDS). Its coverage area was 1700 backward blocks.
- With the principle of targeting the poor in all areas, the Targeted Public Distribution System (TPDS) was launched in 1997.
- TPDS is jointly operated by the Central Government and State Government.
- Targeted Public Distribution System (TPDS) focused on people Above Poverty Line (APL) and Below Poverty Line (BPL).
Role of Central Government in Targeted Public Distribution System (TPDS)
In the Targeted Public Distribution System (TPDS), the role of the Central Government is
- The allocation of food grains
- Procurement, and Transportation of food grains to Food Corporation of India (FCI)
Role of State Government in Targeted Public Distribution System
In Targeted Public Distribution System (TPDS), the role of the State Government is
- Identifying beneficiaries
- Issuing ration cards
- Allocation, and distribution of food grains
