The economic cost of food grains to the Food Corporation of India
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
- transportation cost only
- interest cost only
- procurement incidentals and distribution cost
- procurement incidentals and charges for godowns
Answer
The economic cost of food grains procured by the Food Corporation of India (FCI) is a total of Minimum Support Price and bonus (if any) paid to the farmers plus the procurement incidentals and distribution cost. The economic cost has three main components - procurement cost, procurement price, and distribution cost.
The procurement incidentals are the initial costs incurred during procurement of food grains. The FCI buys food grains from the farmers at the pre-announced Minimum Support Price.
The distribution costs include freight, handling charges, storage charges, losses during transit and establishment cost.
The correct option is C.