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
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Answer: C. FCI's economic cost has three parts: the pooled cost of grain (MSP plus any bonus), procurement incidentals (such as mandi charges, taxes and handling), and distribution cost (such as freight, storage and handling until issue). So option C.
Watch for: Option D also mentions procurement incidentals, so students choose it without noting it leaves out wider distribution cost.
Why the other options are wrong
- A. Wrong because transport is only one part of distribution cost.
- B. Wrong because interest cost is only one element within the incidentals.
- D. Wrong because godown charges are part of distribution cost, which is broader.
Source to check: Food Corporation of India official website, 'Economic Cost' explanation; Department of Food and Public Distribution annual report
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.