Consider the following statements: India continues to be dependent on imports to meet the requirement of oilseeds in the country because: 1. Farmers prefer to grow food grains with highly remunerative support prices. 2. Most of the cultivation of oilseed crops continues to be dependent on rainfall. 3. Oils from the seeds of tree origin and rice bran have remained unexploited. 4. It is far cheaper to import oilseeds than to cultivate the oilseed crops. Which of the statements given above are correct?

Statements 1–3 are correct. Farmers are discouraged from growing non‑MSP crops like oilseeds because guaranteed procurement and higher support for wheat and rice steer cropping choices toward food grains [1]. A large share of oilseed area, especially crops like groundnut, is rainfed in dryland regions, making production vulnerable and limiting expansion [2]. Tree‑borne oilseeds and by‑products such as rice‑bran have known underutilised potential for oils and oilcakes, indicating scope that remains largely unexploited [3]. Statement 4 is not strictly correct: rising edible oil imports reflect domestic low productivity and trade/policy settings that made imports attractive, rather than a simple statement that it is invariably far cheaper to import than to cultivate domestically [4].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 2. Price subsidies distort markets in a way that ultimately hurts the poor: > p. 285
2. [2] INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 3: Land Resources and Agriculture > Oilseeds > p. 30
3. [3] https://www.nabard.org/auth/writereaddata/tender/2811170700OC%2026.pdf
4. [4] https://ers.usda.gov/sites/default/files/_laserfiche/publications/45234/29485_err17a_002.pdf