Extract: This study is concerned with inter-year fluctuations in food grain prices and supplies in India, primarily due to weather-induced production fluctuations. The analysis includes a procedure for stabilizing these fluctuations through a food grains buffer stock program. A buffer stock, considered in an integrated food and agricultural policy framework, is defined as a stock operated by the government with the objectives of not only reducing the price fluctuations around a specified level, but also for minimizing the variability of farm income and supply availability for consumption around their growth paths. Specific issues analyzed in this study include the size and composition of the stocks and evaluation of costs and benefits of buffer stock programs.