Economics · Food Security
Read the following lines carefully. During a severe monsoon failure, the government released large quantities of rice and wheat into the market through fair-price shops. This helped stabilize food prices and ensured availability of essential commodities even in remote rural areas. Which of the following economic mechanisms is being applied by the government in this situation?
- 1Green Revolution policy
- 2Import substitution
- 3Maintenance of buffer stock✓
- 4Food subsidy scheme
Correct answer
Maintenance of buffer stock
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