Question

Buffer stock scheme purpose is______________

(a) To save food grains from pest attack

(b) To stop price fluctuations

(c) To transport the food

(d) To deliver the food

This question was posed to me in an international level competition.

Question is taken from Food Security in section Natural Resources of Energy Management

Answer 1

Right answer is (b) To stop price fluctuations

To explain I would say: A buffer stock scheme is an attempt to use commodity storage for the purpose of stabilizing prices in an entire economy. For example, the United States ‘Strategic Petroleum Reserve’ stores 727 million barrels of crude petroleum, which is sold during shortages.