Consider the following statements : 1. The quantity of imported edib

Consider the following statements :

1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
2. The Government does not impose any customs duty on all the imported edible oils as a special case.

Which of the statements given above is/are correct ?

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option1″]

This question was previously asked in

UPSC IAS – 2018

The correct option is A because statement 1 is generally true regarding India’s edible oil market over the last five years (prior to the question being framed), while statement 2 is incorrect.

India is one of the world’s largest importers of edible oils, significantly relying on imports to meet domestic demand. The government levies customs duties on imported edible oils, although the rates may vary over time based on policy objectives like protecting domestic producers or controlling inflation.

Statement 1 is accurate. India’s domestic production of edible oils has consistently fallen short of consumption, leading to substantial imports of palm oil, soybean oil, and sunflower oil. The volume of imports has often exceeded domestic production. Statement 2 is incorrect; the Indian government imposes customs duties (basic customs duty, agriculture infrastructure and development cess, etc.) on imported edible oils, though rates are adjusted periodically. There is no blanket policy of zero customs duty on all imported edible oils.

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