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Buffer stock schemes are a form of government intervention with the aim to maintain a relatively stable price for commodities and thus avoiding strong price fluctuations. Buffer stocks are a storage of commodities, which the government purchases off producers and sells them in time of need.
If prices for commodities are left for the free market to determine, as it is usually done, in times of a bad harvest of flood which cause the supply for some goods to decrease and the price to increase, government intervention in the form of buffer stock schemes is implemented with the aim to restabilise the price.

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Buffer stock schemes are a form of government intervention with the aim to maintain a relatively stable price for commodities and thus avoiding strong price fluctuations. (2019, Apr 12). Retrieved January 15, 2021, from https://midwestcri.org/buffer-stock-schemes-are-a-form-of-government-intervention-with-the-aim-to-maintain-a-relatively-stable-price-for-commodities-and-thus-avoiding-strong-price-fluctuations/

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