Question
Graph: Central Foodgrains (Wheat + Rice) Stock and Minimum Buffer Norm (Million Tonnes).
Source : Economic Survey 2004-05.
Study the above graph and answer the following questions:
(i) In which recent year foodgrain stock with the government was maximum?
(ii) What is the minimum buffer stock norm for the FCI?
(iii) Why were the FCI granaries overflowing with foodgrains?
Solution
(i)Foodgrain stock with the government was maximum in July, 2002.
(ii)The minimum buffer stock norm for the FCI is 24.3 million tonnes.
(iii)The FCI granaries were overflowing with foodgrains because of good support price offered to the farmers.
