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 for FCI is the total cost incurred in the process of procurement, storage, and distribution of food grains under the public distribution system (PDS) and other welfare schemes. It comprises two main components: 1. Acquisition Cost: This is the price paid to the farmers (MSP + bonus, if any). 2. Incidentals and Distribution Costs: These are expenses incurred beyond the acquisition cost. - Procurement Incidentals include expenses incurred during procurement up to the point of storage, such as mandi charges, handling charges, transportation from mandi to depot, interest on borrowed capital for procurement, and storage losses. - Distribution Costs include expenses incurred from the point of storage onwards, such as freight charges for inter- state movement, handling charges at distribution centres, storage losses during distribution, administrative costs, and retailers' margins (in some cases). Option C correctly encapsulates these additional costs as "procurement incidentals and distribution cost".