Economics · Buffer Stock Policy
During a bumper harvest season, the FCI purchased large quantities of wheat and rice at MSP. Later, during a period of poor rainfall, it released these grains into the market to control price rise. Which function of buffer stock policy does this illustrate?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Encouraging private storage
- 2Reducing food imports
- 3Controlling inflation and stabilizing food prices✓
- 4Long-term investment planning
Correct answer
Controlling inflation and stabilizing food prices
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