The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus
[UPSC Civil Services Exam – 2019 Prelims]
(a) transportation cost only
(b) interest cost only
(c) procurement incidentals and distribution cost
(d) procurement incidentals and charges for godowns
- The economic cost of food grains procured by the Food Corporation of India (FCI) encompasses various components. It includes the Minimum Support Price (MSP) and any applicable bonus paid to the farmers, along with the procurement incidentals and distribution costs.
- FCI’s economic cost has three main components – procurement cost, procurement price, and distribution cost.