UPSC Prelims Practice Questions — Ministry of Finance suspends import duty levied on cotton

Question 1

Before any exemption, the 11% import duty levied on raw cotton entering India is a cumulative figure obtained by combining how many distinct statutory levies?

Accepted Answer

Three

Answer

Two

Answer

Four

Answer

Five

Question 2

Which single Union authority issues the customs notification that suspends the Basic Customs Duty on cotton imports?

Accepted Answer

Ministry of Finance

Answer

Ministry of Textiles

Answer

Ministry of Commerce and Industry

Answer

Ministry of Agriculture and Farmers Welfare

Question 3

In the context of India's recurring cotton import-duty suspensions, the 'lean season' during which the duty is typically waived corresponds to which period of the year?

Accepted Answer

April to October, when domestic arrivals are low and mills rely more on imports

Answer

November to March, when the new crop floods the mandis

Answer

October to September, coinciding with the full marketing season

Answer

January to June, matching the financial-year closing

Question 4

Counting the 2026 waiver, in how many distinct calendar years since 2022 has the Government of India suspended the import duty on cotton?

Accepted Answer

Three

Answer

Two

Answer

Four

Answer

Five

Question 5

India's cotton marketing season, as referenced in duty-suspension notifications, is defined as spanning which twelve-month period?

Accepted Answer

1 October to 30 September

Answer

1 April to 31 March

Answer

1 July to 30 June

Answer

1 January to 31 December

Question 6

The following are stated to be among India's leading cotton-producing States. Which of the above is/are NOT correct?

Accepted Answer

4 only

Answer

1 and 3

Answer

2 and 4

Answer

3 only

Question 7

Which single organisation acts as the central nodal agency for undertaking Minimum Support Price operations in cotton?

Accepted Answer

Cotton Corporation of India

Answer

Food Corporation of India

Answer

National Agricultural Cooperative Marketing Federation (NAFED)

Answer

Commission for Agricultural Costs and Prices

Question 8

Among the following trade-policy instruments, which one is the primary mechanism actually used by the Government to temporarily remove the Basic Customs Duty on cotton imports?

Accepted Answer

Customs exemption notification

Answer

Safeguard duty

Answer

Countervailing duty

Answer

Anti-dumping duty

UPSC Prelims Practice Questions — Ministry of Finance suspends import duty levied on cotton

Q1. Before any exemption, the 11% import duty levied on raw cotton entering India is a cumulative figure obtained by combining how many distinct statutory levies?

Q2. Which single Union authority issues the customs notification that suspends the Basic Customs Duty on cotton imports?

Q3. In the context of India's recurring cotton import-duty suspensions, the 'lean season' during which the duty is typically waived corresponds to which period of the year?

Q4. Counting the 2026 waiver, in how many distinct calendar years since 2022 has the Government of India suspended the import duty on cotton?

Q5. India's cotton marketing season, as referenced in duty-suspension notifications, is defined as spanning which twelve-month period?

Q6. The following are stated to be among India's leading cotton-producing States. Which of the above is/are NOT correct?

Q7. Which single organisation acts as the central nodal agency for undertaking Minimum Support Price operations in cotton?

Q8. Among the following trade-policy instruments, which one is the primary mechanism actually used by the Government to temporarily remove the Basic Customs Duty on cotton imports?