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:
✓ Correct answer: c) procurement incidentals and distribution cost.
ExplanationThe Economic Cost of food grains to the FCI includes the Minimum Support Price and bonus (if any) paid to the farmers plus the procurement incidentals and distribution cost.UPSC GS Paper-I PYQs 248Procurement incidentals are expenses incurred during procurement till the food grains reach the first point of godown.Distribution costs are now included in economic costs, whilst buffer carrying costs are now included in buffer subsidies.Food Corporation of India (FCI) is a statutory body that falls under the Ministry of Consumer Affairs’ Department of Food and Public Distribution.In 1965, the Food Corporations Act of 1964 created the FCI.It was founded in the midst of a severe grain crisis, particularly in wheat.In order to suggest re- munerative pricing to farmers, the Commission on Agricultural Costs and Prices (CACP) was established in 1965. 41
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