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      Question

      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 Correct Answer Incorrect Answer
      B Interest cost only Correct Answer Incorrect Answer
      C Procurement incidentals and distribution costs Correct Answer Incorrect Answer
      D Procurement incidentals and charges for godowns Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Economic Cost of foodgrains consists of three components: Pooled cost of grains, which is the weighted MSP of the stock of foodgrains available with FCI, procurement incidentals, cost of distribution.

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