Evolution and Critique of Buffer Stocking Policy of India

An evaluation of the country’s buffer stock policy reveals gaps and inefficiencies. Large quantities of food grains have accumulated in the godowns of the Food Corporation of India (FCI) and its nominated state agencies, raising questions about the economic efficiency of the entire operation. At the same time, there is high incidence of malnutrition and rising food grain prices across the country. The level of government intervention in grain markets is straining government finances because of the increasing burden of food subsidy. There are increasing concerns regarding the imbalances being created in the national production basket, of alienation of market forces and its players, of quality of grain, and the sustainability and relevance of such operations.