The concept of Buffer Stocks is a core component of India's food management policy, defined as a reserve of essential food grains, primarily wheat and rice, maintained by the government to stabilize prices and ensure Food Security. This strategic reserve was introduced during the 4th Five Year Plan (1969-74), gaining prominence after the food crises of the 1960s to manage fluctuating agricultural production and prevent famines.
The mechanism works through the Food Corporation of India (FCI), established in 1965 under the Food Corporations Act, 1964, which is mandated to procure, store, and distribute the grains. The procurement is done from farmers at the Minimum Support Price (MSP), which provides income support and acts as a price floor. The Cabinet Committee on Economic Affairs (CCEA) fixes the minimum buffer norms on a quarterly basis, specifically on the 1st April, 1st July, 1st October, and 1st January. The stock is divided into Operational Stocks for monthly distribution and Strategic Reserves/Food Security Stocks for emergencies.
This system is the physical backbone of the Targeted Public Distribution System (TPDS) and is intrinsically linked to the National Food Security Act (NFSA), 2013, which transformed food distribution into a legal right for over 800 million beneficiaries. A notable change occurred in 2015, when the government created a separate buffer stock of 1.5 lakh tonnes of pulses to control price volatility, with procurement handled by agencies like NAFED and FCI. Additionally, a strategic reserve of 30 lakh tonnes of wheat (since 2008) and 20 lakh tonnes of rice (since 2009) is maintained. Grains are released into the open market via the Open Market Sale Scheme (OMSS) to check inflationary pressures.