Published on 11 Mar 2025
Buffer stock is a reserve of essential commodities, primarily food grains, maintained by the government to stabilize prices and ensure availability during shortages. In India, the Food Corporation of India (FCI) plays a crucial role in managing buffer stocks under the supervision of the Ministry of Consumer Affairs, Food, and Public Distribution.
Objectives of Buffer Stock in India
Food Security: The primary objective is to guarantee food availability to the entire population, especially during times of scarcity caused by natural calamities or production shortfalls.
Example: In 2020, PM Garib Kalyan Yojna (GKAY) used buffer stocks to feed over 800 million people during the COVID-19 lockdown.
Price Stabilization: By procuring excess production at Minimum Support Price (MSP) and releasing stocks in the market during shortages, the government aims to prevent excessive price fluctuations that harm both farmers and consumers.
Income Support for Farmers: Purchasing grains at MSP provides a safety net for farmers, ensuring they receive a fair price for their produce even in years of bumper harvests.
Distribution of Food Grains: Buffer stock is crucial for implementing the Public Distribution System (PDS), which provides subsidized food grains to the poor and vulnerable sections of society.
Emergency Preparedness: The stockpiles serve as a reserve to meet the food requirements during emergencies like natural disasters, wars, or other unforeseen circumstances.
Example: In 2004, following severe Tsunami, buffer stocks were released to ensure adequate food supply to the affected regions, helping to mitigate the impact of the destruction on vulnerable populations.
Strategic Reserve: Maintaining a buffer stock is essential for national food security and strategic purposes, ensuring the country's self-sufficiency in food grains
Buffer stock norms in India
Buffer stock norms are the minimum levels of food grains that the government aims to maintain in its central pool. These norms are crucial for ensuring food security, price stability, and effective implementation of welfare schemes.
Fixed by the Cabinet Committee on Economic Affairs (CCEA): The CCEA determines the minimum buffer stock norms on a quarterly basis (April, July, October, and January).
Operational Stock and Buffer Stock: While the terms are often used interchangeably, there's a distinction. Operational stock is required for the Public Distribution System (PDS) and other welfare schemes, while buffer stock is the excess over operational stock.
Rice and Wheat Buffer Stock Requirements: The government maintains buffer stock norms for rice and wheat to ensure food security. For example, as of 2020, the buffer stock requirement is around 21.04 million tonnes annually (11.5 million tonnes of rice and 9.5 million tonnes of wheat).
Minimum Holding Levels: Specific minimum holding levels are established to ensure that buffer stocks do not fall below a certain threshold, ensuring readiness for emergencies.
Example: The Food Corporation of India (FCI) and state agencies are mandated to keep minimum stocks to cover at least 3-6 months of anticipated consumption.
Strategic Reserve: In addition to buffer norms, the government maintains a strategic reserve of wheat and rice for emergencies.
Example: Special reserves are kept for potential geopolitical conflicts or major natural disasters, ensuring the country’s food security is not compromised.
Pulses Buffer Stock: Since 2015, the government has also been building a buffer stock of pulses to stabilize prices.
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Food security
buffer stocks
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General Studies Paper 3
Agriculture and Food Security