UPSC CSE Prelims
Question 57
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
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation:
FCI economic cost combines pooled acquisition cost-MSP/bonus plus procurement incidentals-and distribution cost, including freight, storage and associated handling.
Option-wise Analysis:
A (Incorrect): Transport is only one component of distribution, so this omits procurement and other costs.
B (Incorrect): Interest cost is not the whole procurement-plus-distribution addition.
C (Correct): Procurement incidentals and distribution cost complete the economic-cost definition.
D (Incorrect): Godown charges omit other important distribution costs.