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GS Paper IUPSC Prelims 2019
Agriculture & Rural Economy
Question No. 40Interactive Test Mode
00:00
+2-0.66

Q40. 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:

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:

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2019 • Indian Economy

Correct Answer: Option (C) — procurement incidentals and distribution cost.

Concept & Option Breakdown

Standard Reference Verified

The Economic Cost of food grains incurred by the Food Corporation of India (FCI) consists of three main components: (1) Acquisition Cost, which comprises the Minimum Support Price (MSP) and bonus paid to farmers, (2) Procurement Incidentals (statutory levies, mandi fees, labour, packaging, local transport), and (3) Distribution Cost (freight, handling, interest, transit losses, and administrative overheads).

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2019 (Q40)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Agriculture & Rural Economy
Official Answer KeyOption (C) — procurement incidentals and distribution cost.

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Frequently Asked Questions — UPSC Prelims 2019 Q40

What is the official answer for UPSC Prelims 2019 GS Paper I Question 40 (Indian Economy)?

The official UPSC answer key for this 2019 Indian Economy (Agriculture & Rural Economy) question is Option (C): "procurement incidentals and distribution cost.". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2019 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Agriculture & Rural Economy". You can explore all repeated questions from Agriculture & Rural Economy in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Agriculture & Rural Economy UPSC Prelims question using option elimination?

To solve Agriculture & Rural Economy questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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