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Sunday, 2 June 2019

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

  By GK Planet Team       Sunday, 2 June 2019
Q. 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
  1. Transportation cost only
  2. Interest cost only
  3. Procurement incidentals and distribution costs
  4. Procurement incidentals and charges for godowns
Answer: Procurement incidentals and distribution costs


The Food Corporation of India (FCI) was set up on 14 January 1965 having its first District Office at Thanjavur – rice bowl of Tamil Nadu– and headquarters at Chennai (The Headquarters later shifted to Delhi) under the Food Corporations Act 1964 to implement the following objectives of the National Food Policy :
  1. Effective price support operations for safeguarding the interests of the poor farmers
  2. Distribution of foodgrains throughout the country for Public Distribution System (PDS)
  3. Maintaining a satisfactory level of operational and buffer stocks of foodgrains to ensure National Food Security
  4. Regulate market price to provide foodgrains to consumers at a reliable price
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Thanks for reading 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

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