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2014-09-08T11:07:48+05:30

It is the stock used in agriculture to stabilize the price of commodities. Govt purchases excess production for storage and sells that storage stock in years of low production. In general, the use of buffer stock stabilizes commodity market price swing.

Merits of Public distribution system: 1 It helps in stabilizing prices and making food available to consumers at affordable prices. 2 It has helped in avoiding hunger and famine by supplying food from the surplus regions of the country to deficient regions. 3 The system of minimum support price and procurement has contributed to increase in food grain production.

Demerits of Public Distribution System: 1 Instances of hunger occurs despite granaries being full . 2 High level of buffer stock often leads to wastage of food grains and deterioration in quality. 3 The storage of food grains inculcates high storage costs on the govt. 4 The provision of minimum support price has encouraged farmers to divert lands from production of coarse grains to rice and wheat.

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2014-09-08T11:09:59+05:30
 Buffer stock means a supply of inputs held as a reserve to safeguard against unforeseen shortage and demands.

Merits of pds
. It helps to maintain food security.
  .It has helped people in local rural areas .
 . it has helped to provide job opportunities to many people.
  
Demerits of pds
.Some organizers are doing many malpractices.
.Availability of goods and services in pds centres are not properly ensured in some areas.

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