The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus

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

Accepted Answer

The economic cost comprises the procurement price of foodgrains, costs related to procurement (such as statutory taxes, labour costs, mandi fees, and so on) and costs of distribution (including freight, storage and administration).