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

Correct Answer: procurement incidentals and distribution cost

Explanation:

The Economic Cost of Food Grains to the Food Corporation of India (FCI) refers to the total cost incurred by the government in acquiring, storing, and distributing food grains (such as wheat and rice) under the Public Distribution System (PDS) and other welfare schemes.

The economic cost is broadly divided into three main components:

1. Minimum Support Price (MSP) and Bonus: The base price paid directly to farmers for acquiring the food grains, including any additional bonus offered by state governments.

2. Procurement Incidentals: The expenses incurred during the procurement process before the food grains reach FCI godowns. This includes mandigate/statutory charges, mandi labor charges, gunny bag expenses, commission to societies or agents, internal transportation, and storage charges during procurement.

3. Distribution Cost: The expenses incurred in moving and storing food grains from FCI depots to various state governments or fair price shops for distribution. This includes freight charges, handling expenses, storage losses, transit losses, and administrative overheads.

Therefore, the total Economic Cost is calculated as:

Economic Cost = MSP (and bonus) + Procurement Incidentals + Distribution Cost

Hence, the correct option is procurement incidentals and distribution cost.