UPSC Prelims 2019 · Question 9 of 99
UPSC Prelims 2019 question on Economic Cost of Foodgrains
- ExamUPSC CSE
- Year2019
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicAgriculture Economy
- DifficultyEasy
- TypeDirect
The economic cost of food grains to the Food Corporation of India is Minimum Support Price and
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Answer: C. procurement incidentals and distribution cost
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).
Thus, the economic cost = Minimum Support Price + procurement incidentals and distribution cost → Option (c).