Read the given paragraph and answer the following question:

‘Swapna, a small farmer in Kurnool (Andhra Pradesh), grows cotton on her small piece of land. The bolls of the cotton plant are ripe, and some have already burst, so Swapna is busy picking cotton. Once the cotton is collected, instead of selling it at the Kurnool cotton market, Swapna and her husband take the harvest to the local trader. At the beginning of the cropping season, Swapna had borrowed Rs 2,500 from the trader at a very high-interest rate to buy seeds, fertilisers, and pesticides for cultivation. At that time, the local trader made Swapna agree to another condition. He made her promise to sell all her cotton to him.’

What promise did Swapna make to the trader?

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To pay higher interest

To sell all her cotton produce to him

To not pay any interest

None of the above

answer is B.

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Detailed Solution

Swapna promised the trader to sell all her cotton produce to him. When the cotton was gathered, Swapna and her husband took the harvest to the neighbourhood merchant rather than selling it at the Kurnool cotton market. This is because Swapna had borrowed Rs 2,500 at a very high-interest rate from this trader at the start of the cropping season to purchase inputs for farming. The local trader then forced Swapna to commit to him to sell him all of her cottons. The trader, however, paid less than she would have earned at the market. But she had to abide by the trader's terms since she might need to borrow from traders like him again in the future.

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