Buffer Stock Scheme

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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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NFA Council, the highest policy-making body panel that has a final say on importation, finally gave in to the request of National Food Authority (NFA) to use its standby authority to import 250,000 metric tons (MT) of rice to replenish its buffer stocks, which had recently gone down to its lowest monthly level in 10 years.
If it's legal, if it's for the NFA's supply of buffer stocks, I'm fine with it, but let's not twist the truth.
Earlier, Senator Nancy Binay told the NFA to come up with contingency measures to maintain the required buffer stocks of rice until April.
To allay fears of a possible rice shortage and its consequent price increase, Senator Nancy Binay urged the National Food Authority (NFA) to come up with contingency measures to maintain the required buffer stocks of rice until April.
'The audit team has given emphasis in reiterating the observations and recommendations in previous years and may consider these procured and undistributed/unutilized buffer stocks as wastage of government resources,' the COA said.
Improved logistics network for NFA urged !-- -- Mary Grace Padin (The Philippine Star) - April 28, 2019 - 12:00am MANILA, Philippines The National Food Authority (NFA) must strengthen its logistics capacity to ensure that the country has enough rice buffer stocks that will be accessible during times of emergencies, an official of the Department of Finance (DOF) said.
'In the same way, NFA may stop procuring at certain periods when it has sufficient buffer stocks already and is not yet in a position to release rice,' he told the
Thank you Mr Speaker, the ECOWAS strategic food reserves are kept in Tamale and Yendi in Ghana here, and if you know how buffer stocks are run, they are run in order to manage the food reserves such that we respond to emergency situations, and to also minimise the cost of storage of the produce.
Under the Rice Tariffication Bill, which is now awaiting for President Duterte's signature to become a law, the NFA will no longer be allowed to import rice for its buffer stocks.