What problems are faced in administering the buffer stock and stabilizing fund policies
- LDCs are poor and therefore cannot afford purchasing the excess surplus due to limited funds
- There are inadequate storage facilities especially for perishable goods such as vegetables
- Poor transport system to collect these produces from all parts of the country
- Reluctance by the government to take risk
- Corruption may lead to mismanagement of funds
- In case of continuous declining prices for several seasons, the funds is likely to be exhausted
- Producers may continue producing the same products that lack market instead of diversification
- In case of a general trend of price increase due to scarcity, producers at times keep on producing less instead of producing more. This makes price increase persistent.
- International commodity agreements which would be stabilizing prices of agricultural products are weak and disorganized.
CATEGORIES Economics
TAGS Dr. Bbosa Science
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