Question

how does FCI
purchase grain from the farmers

Answer 1

The Minimum Support Price (MSP) is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops. The purchased foodgrains are stored in granaries.

Answer 2

FCI purchase grain from farmers at a low cost that is MSP(Minimum Support Price)( It is generally a high price so that farmers could get more profit.) set by the government. After purchasing it stores the grain. And provides to weaker sections of people who are in need of it at low cost. The government provide the money for whatever loss is done to FCI.

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