Introduction
The procurement price is the rate at which government agencies purchase food grains from farmers, ensuring a minimum income for them. As per the Commission for Agricultural Costs and Prices (CACP), it stabilizes market prices and maintains buffer stocks for food security. This mechanism supports farmers by providing a safety net against market fluctuations, thereby promoting agricultural sustainability and rural welfare.
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Introduction
Government Buffer Stock Operations refer to the strategic reserve of essential commodities, primarily food grains, maintained by the government to stabilize prices and ensure food security. As per economist Amartya Sen, these operations are crucial for preventing famines and managing supply shocks. In India, the Food Corporation of India (FCI) plays a pivotal role in procuring, storing, and distributing these stocks. This mechanism helps in mitigating inflationary pressures and ensuring availability during adverse conditions.
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Elucidate the importance of buffer stocks for stabilizing agricultural prices in India. What are the challenges associated with the storage of buffer stock? Discuss. (UPSC 2024, 15 Marks, )
भारत में कृषि मूल्यों को स्थिर करने के लिए बफर स्टॉक के महत्व को स्पष्ट करें। बफर स्टॉक के भंडारण से जुड़ी चुनौतियाँ क्या हैं? चर्चा करें।View Answer
Introduction
Buffer stocks are essential for stabilizing agricultural prices in India, as they help mitigate price volatility and ensure food security. According to the Food Corporation of India (FCI), these reserves are crucial during poor harvests or supply disruptions. However, challenges such as inadequate storage infrastructure, high maintenance costs, and wastage due to pests and spoilage hinder their effectiveness. Economist Amartya Sen emphasizes the need for efficient management to prevent food scarcity and stabilize market prices.
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