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Buffer Stock
A buffer stock is a reserve of food grains, mainly rice and wheat, held by the Food Corporation of India. It supplies the public distribution system and can be released into the market to cool prices after a poor harvest.
Why It Matters
Buffer stocks are why a weak monsoon pushes up onion prices far more than rice prices.
In India
During the weak 2026 monsoon, large rice and wheat stocks kept cereal prices relatively stable while vegetable prices surged.
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