UPSC Editorials Quiz : 15 June 2026

Solution: C

• The Nutrient Based Subsidy (NBS) scheme regulates pricing by fixing subsidy rates for Phosphorus and Potassium (P&K) fertilisers while allowing market dynamics to determine final retail prices.
• Under the Neem Coated Urea mandate, the primary objectives are to prevent the illegal diversion of agricultural urea to non-agricultural chemical industries and to slow down nitrogen release into the soil, thereby improving crop nutrient-use efficiency.
• Additionally, the Direct Benefit Transfer (DBT) model in the fertiliser sector represents a major administrative shift. Unlike typical welfare schemes where subsidies are paid beforehand, DBT 2.0 releases subsidy payments to manufacturing companies only after the actual retail transaction is completed and recorded via Point of Sale (PoS) devices at retail outlets.

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Solution: B

• The term “Dutch disease” originally described a situation in which the discovery of lucrative natural resources reduced the competitiveness of other productive sectors of the economy. In the context of R&D and industrial innovation, the concept is used metaphorically. It refers to a situation where firms enjoy comfortable profits from a large, protected, or captive domestic market and therefore face limited pressure to innovate, undertake risky research, or develop cutting-edge technologies.
• When companies can earn substantial returns through existing products and market dominance, investment in long-gestation R&D projects may appear less attractive. This can result in lower technological upgrading, reduced patent generation, and weaker global competitiveness. Several economists have argued that some industries in emerging economies may suffer from this phenomenon when domestic demand remains strong but international competitive pressure is limited.

Solution: B

• Urban municipal networks face persistent water contamination due to three interacting factors: proximity to a pollution source, an entry pathway, and a hydraulic trigger. A critical hydraulic trigger is back-suction or flow reversal, which occurs under low-pressure conditions in the main line. When municipal water pressure drops, often due to intermittent supply or technical breakdowns, residents utilize high-capacity household suction pumps to draw water directly from the network.
• These pumps create a severe negative pressure differential inside the municipal main pipeline. If the pipeline has corroded joints, weak ferrules, or is run parallel to a leaking sewer line—a common structural error in dense metro areas—the negative pressure pulls raw sewage and stagnant contaminated stormwater directly into the drinking water line.
• This mechanism demonstrates that relying on reactive, emergency repairs is insufficient. Addressing contamination requires a systemic shift to preventative solutions, such as real-time pressure monitoring, updated mapping of underground utilities, routine multi-point water quality testing, and the planned structural replacement of aging pipe networks.

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Solution: B

• Statement 1 is correct. Commercial LPG is widely used by restaurants, hotels, eateries, and catering establishments. When commercial LPG prices increase, operating costs in the hospitality sector rise. These higher costs are often passed on to consumers through increased prices for food services and accommodation-related activities, thereby influencing inflation in the CPI sub-group “restaurants and accommodation services.”
• Statement 2 is incorrect. Core inflation is specifically designed to exclude highly volatile components such as food and fuel. Economists use it to identify the underlying or persistent inflation trend in the economy. By removing items whose prices fluctuate due to seasonal factors, weather conditions, or global commodity shocks, core inflation provides a clearer picture of demand-driven price pressures.
• Statement 3 is correct. Transport inflation is an important indicator of the pass-through effect of fuel price increases. Higher diesel, petrol, or other energy costs raise the cost of moving goods across supply chains. Consequently, increases in freight charges and “transport services for goods” often signal that upstream fuel shocks are being transmitted to the broader economy, eventually affecting retail prices of numerous products and services.

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Solution: C

• India’s current disability pension architecture is fragmented, discretionary, and state-dependent, with monthly pensions ranging from ₹300 to ₹3,000 based entirely on geography rather than the severity of the disability. Legally, Section 24 of the Rights of Persons with Disabilities Act, 2016 guarantees social security, while the Supreme Court has recognized the right to live with dignity as a fundamental right.
• Constitutionally, Article 41 directs the state to provide public assistance to disabled citizens within its economic capacity.