What is the economic cost of foodgrains to the Food Corporation of India ?

The economic cost of foodgrains to the Food Corporation of India has three parts: the minimum support price paid to farmers (with any State bonus), the procurement incidentals such as mandi charges, taxes, gunny bags and labour, and the distribution cost such as freight, handling, storage and transit losses. Options that add only transport, interest or godown charges leave out the other components. The gap between this economic cost and the central issue price is the food subsidy borne by the Centre.