Due to the following reasons, buffer stock is created by the government:
(i) This is done to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price also known as Issue Price.
(ii) This also helps resolve the problem of shortage of food during adverse weather conditions or during the periods of calamity.
(iii) Maintaining buffer stock is a step taken by the government in order to ensure food security.
