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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

(a)

transportation cost only

(b)

interest cost only

(c)

procurement incidentals and distribution cost

(d)

procurement incidentals and charges for godowns

Correct Answer

(c)

Explanation

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

Microtheme: Agri-Marketing —
1 question asked in Prelims in the past.

  1. [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

    • (a) transportation cost only
    • (b) interest cost only
    • (c) procurement incidentals and distribution cost
    • (d) procurement incidentals and charges for godowns
    Correct Answer: (C) procurement incidentals and distribution cost