What are the importance of Buffer Stocks?

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Importance of Buffer Stocks

While fixing procurement targets need for renewing and building buffer stocks is kept in mind. Buffer stocks are surplus stocks of food materials, which are stored in godowns. Buffer stocks serve the following purposes:

1. These stocks help in uniform distribution of food materials in different parts of the country.

2. These stocks can be used to satisfy the food requirements in the event of all in production due to adverse climatic conditions such as floods and droughts or due to plant diseases.

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3. These stocks help in maintaining fairly constant prices.

4. These stocks make it convenient to send food supplies to distress areas without undue delay.

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