UPSC Prelims Practice Questions — Cotton farmers oppose Goyal’s U.S. import remarks, warn of price crash
Q1. With reference to recent (2025-26) developments concerning India's cotton sector and trade arrangements, consider the following statements:
1. Under the February 2026 interim trade framework, the reciprocal tariff on India's exports to the United States was reduced to a level lower than that fixed under the parallel US-Bangladesh deal.
2. For the 2025-26 cotton season, the Minimum Support Price fixed for long-staple cotton is higher than that fixed for medium-staple cotton.
3. The import duty exemption granted on raw cotton in 2025 was extended up to 31 March 2026.
Which of the statements given above is/are correct?
- Under the February 2026 interim trade framework, the reciprocal tariff on India's exports to the United States was reduced to a level lower than that fixed under the parallel US-Bangladesh deal.
- For the 2025-26 cotton season, the Minimum Support Price fixed for long-staple cotton is higher than that fixed for medium-staple cotton.
- The import duty exemption granted on raw cotton in 2025 was extended up to 31 March 2026.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q2. Which one of the following is the nodal agency designated by the Government of India for undertaking Minimum Support Price (MSP) procurement operations of cotton for the 2025-26 season?
- A. Cotton Corporation of India (CCI)
- B. National Agricultural Cooperative Marketing Federation of India (NAFED)
- C. Food Corporation of India (FCI)
- D. Agricultural and Processed Food Products Export Development Authority (APEDA)
Q3. With reference to the Minimum Support Price (MSP) regime for cotton notified for the 2025-26 season, consider the following:
1. The MSP for long-staple cotton has been fixed at ₹8,110 per quintal.
2. The MSP for medium-staple cotton has been fixed at ₹7,710 per quintal.
3. The MSP assures at least a 50% return over the cost of production.
4. MSP procurement of cotton is undertaken through the Food Corporation of India.
Which of the above are correctly identified?
- The MSP for long-staple cotton has been fixed at ₹8,110 per quintal.
- The MSP for medium-staple cotton has been fixed at ₹7,710 per quintal.
- The MSP assures at least a 50% return over the cost of production.
- MSP procurement of cotton is undertaken through the Food Corporation of India.
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1, 2 and 3 only
- D. 1, 2, 3 and 4
Q4. As per official statements regarding the 2025-26 cotton season MSP operations, in how many States has the Cotton Corporation of India operationalised its procurement centres?
- A. 9 States
- B. 11 States
- C. 13 States
- D. 15 States