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Buffer Stock Scheme
(redirected from buffer stock)

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Buffer Stock Scheme
A practice in which a large investor, especially a government, buys large quantities of commodities during periods of high supply and stores them so they do not trade or circulate. The investor then sells them when supply is low. This is done to stabilize the price by roughly equalizing supply regardless of other factors. This practice was first used in China more than 2,600 years ago. It is most common with agricultural products. The usefulness of the scheme is controversial.


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However, the country still has comfortable buffer stocks totalling 14.
However, the country still has comfortable buffer stocks totalling 14.
52 lakh tonnes of rice while the buffer stock norms stipulate that 98 lakh tonnes are sufficient to meet the country's requirement on this date.
 
 
 
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