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Q.

The merchants sell off the cotton cloth to factories in [[1]].


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Detailed Solution

The merchants sell off the cotton cloth to factories in Delhi.
The merchants and traders in Erode provide raw materials to the weavers in nearby villages, who produce cloth from the raw materials and sell these off to the merchants and traders. These traders and merchants sold the finished cloth they gained from the weavers to different factories in Delhi and used the fabric to produce shirts. New Delhi is the capital of India. This is the same way things are done to make most items.
 
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