UPSC Previous Year Question | Prelims GS | 2019

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

  1. transportation cost only
  2. interest cost only
  3. procurement incidentals and distribution cost
  4. procurement incidentals and charges for godowns

Answer

Correct Answer

procurement incidentals and distribution cost

Explanation

The FCI's economic cost of foodgrains = MSP (and bonus, if any) paid to farmers + procurement incidentals (mandi charges, etc.) + distribution cost (freight, handling, storage, interest, etc.).

Topics: agriculture, economic cost of food grains (fci), food management, indian economy