Explanation

Option C is correct: The Economic Cost of Foodgrains incurred by the Food Corporation of India (FCI) represents the comprehensive cost of acquiring, storing, and distributing food grains under the public distribution system:

– Formula: Economic Cost = Acquisition Cost + Distribution Cost
– Acquisition Cost comprises the Minimum Support Price (MSP) and bonus paid to farmers plus Procurement Incidentals (statutory mandi charges, state taxes, labor, bagging, and handling at purchase centers).
– Added to this is the Distribution Cost (freight charges, storage losses, handling, interest on working capital, and operational overheads).

Hence, it consists of MSP plus procurement incidentals and distribution cost — Option C.