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UPSC 2019: FCI’s Economic Cost Formula

✅ Answer: (c) procurement incidentals and distribution cost

FCI’s economic cost of foodgrain equals the MSP, plus any bonus paid to farmers, plus procurement incidentals (mandi tax, labour, gunny bags), plus distribution cost (freight, storage, handling, transit losses).

Related: IndEco0134 — Food Corporation of India (FCI)

1. 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 (UPSC CSP 2019)

 

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