The Govt. of India decided to scrap the import duty on cotton and also withdraw incentives on the export of the same. How will this action of the govt. affect the cotton market in India ? More and more traders will be able to import cotton as there is no import duty on it. The price of the cotton in domestic market will come down. More and more farmers will no start growing cotton.

• A. Only 1
• B. Only 2
• C. Only 3
• D. All 1, 2 and 3
• E. None of these