Buffer stock refers to the physical stock of a commodity that is procured and held by the government or a designated agency for the purpose of stabilizing prices and ensuring availability in the market. In the case of toor dal, buffer stocks can be useful in controlling prices in the following ways: 1.

Price stabilization: Buffer stocks act as a cushion against fluctuations in supply and demand. When there is excess supply, the government can purchase the surplus dal and store it in the buffer stock. This helps in stabilizing prices by reducing the supply in the market and preventing price crashes.

2.

Price control during scarcity: During times of low production or increased demand, the government can release the dal from the buffer stock into the market. This helps in controlling the prices during scarcity and ensuring that the essential commodity is available at affordable rates.

3.

Market intervention: Buffer stocks enable the government to intervene in the market to maintain price stability. By buying and selling from the buffer stock, the government can influence the price levels effectively.

4.

Ensuring food security: Buffer stocks are crucial for ensuring food security, especially for low-income households. By maintaining adequate stocks, the government can prevent sudden price spikes and ensure the availability of toor dal to the vulnerable population.

Overall, buffer stocks play a vital role in stabilizing the prices of essential commodities like toor dal, ensuring both price stability and food security for the population.