Question 10
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?
AOptions
BSolution
Statement 1 is correct: India is one of the world's largest importers of edible oils. For many years, and specifically in the last five years preceding the question's context, the quantity of imported edible oils has significantly surpassed domestic production due to a persistent demand-supply gap. India relies heavily on imports to meet its edible oil consumption needs.
Statement 2 is incorrect: The Government of India does impose customs duty on imported edible oils. The customs duty rates on various edible oils are regularly adjusted based on domestic prices, international prices, and to protect the interests of domestic oilseed farmers. It is not true that no customs duty is imposed; rather, it is a significant source of revenue and a policy tool.
CStrategy
For questions on agricultural trade and policy, understand the general trends (e.g., import dependency for certain commodities) and the government's intervention tools (e.g., customs duty, subsidies). Be wary of absolute statements like 'does not impose any customs duty' as these are often incorrect in dynamic economic policy environments.
DSyllabus Analysis
This question falls under Indian Economy, specifically Agriculture, Trade Policy, and Food Security.
EQuestion Analysis
Easy to Medium. It requires general awareness of India's agricultural import dependency and basic knowledge of trade policy instruments.