Economy
2019
Agriculture Schemes

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

D.procurement incidentals and charges for godowns
C.procurement incidentals and distribution cost
A.transportation cost only
B.interest cost only

Correct Answer: Option C

The economic cost of food grains for the Food Corporation of India (FCI) is calculated as the Minimum Support Price (MSP) and any bonus paid to farmers, plus procurement incidentals and distribution costs.

Procurement incidentals refer to the initial expenses incurred during the acquisition of food grains.

Distribution costs encompass expenses like freight, handling charges, storage in godowns, and losses during transportation.

Therefore, the correct answer is (c).

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