Operational stock
Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT
Meaning
Operational stock is the part of the central-pool foodgrain stock kept to meet regular needs. These are the monthly PDS supplies and other welfare schemes. It is one of two parts of the buffer stock norms (in force since January 2015). The norms set the minimum rice and wheat to be held on the first day of each quarter: 1 April, 1 July, 1 October and 1 January.
Example
FCI holds rice and wheat so that fair price shops across India get their monthly NFSA grain on time. That stock is operational stock.
Don't confuse with
- Strategic reserve: the strategic reserve is extra grain kept for emergencies such as crop failure or disaster. Operational stock is for routine monthly distribution.
Related concepts
- Procurement
- Buffer stock
- Buffer stock norms
- Strategic reserve
- Open-ended procurement
- Centralised procurement
- Decentralised procurement
- Price support scheme
- Price deficiency payment
- Market intervention scheme