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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

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

(a)

transportation cost only

(b)

interest cost only

(c)

procurement incidentals and distribution cost

(d)

procurement incidentals and charges for godowns

Answer:

(c)

Moderate

Core Books

Core Books/NCERT

Explanation

FCI defines economic cost as the sum of acquisition cost and distribution cost. So the most correct answer is c.