Question map
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 ?
Explanation
The correct answer is option A (Statement 1 only).
**Statement 1 is correct:** During 1985-86 and 2016-17, while domestic edible oil production increased by around 1.8 times, imports increased by around 33 times[1]. This dramatic disparity indicates that by the recent period (2013-14 to 2017-18), imported quantities had significantly exceeded domestic production, making statement 1 correct.
**Statement 2 is incorrect:** The period 2013-14 to 2017-18 has been characterized by increasing tariff rates due to increasing imports[2]. Furthermore, during September 23, 2016 and March 1, 2018, the duties were revised and increased 4 times, with the most recent duty hike announced on March 1, 2018[3]. This clearly shows that the government does impose customs duties on imported edible oils, contrary to what statement 2 claims.
Therefore, only statement 1 is correct.
Sources- [1] https://desagri.gov.in/wp-content/uploads/2024/04/2018-19-Trade-Policy-and-the-Edible-Oilseed-Sector-of-India.pdf
- [2] https://desagri.gov.in/wp-content/uploads/2024/04/2018-19-Trade-Policy-and-the-Edible-Oilseed-Sector-of-India.pdf
- [3] https://desagri.gov.in/wp-content/uploads/2024/04/2018-19-Trade-Policy-and-the-Edible-Oilseed-Sector-of-India.pdf
PROVENANCE & STUDY PATTERN
Guest previewThis question tests 'Macro-Economic Trends' (Statement 1) and 'Fiscal Policy Logic' (Statement 2). It rewards reading the Economic Survey's 'External Sector' chapter or tracking inflation news, where edible oil duties are frequently tweaked to balance farmer interests vs. consumer prices.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: In India, for the five-year period 2013-14 to 2017-18, was the quantity of imported edible oils greater than domestic edible oil production?
- Statement 2: As of 2018 in India, does the government impose any customs duty on imported edible oils, or are all imported edible oils entirely exempt from customs duty?
States that palm oil has dominated Indian edible-oil imports and accounts for around 74% of total edible-oil imports, implying imports are large and concentrated.
A student could combine this share with known annual import volumes of palm oil (from trade statistics) to approximate total edible-oil imports and compare with domestic production figures for 2013–14 to 2017–18.
Notes India is a major importer (with China) and that global consumption and trade are large, indicating substantial import dependence for edible oils.
Use reported global/regional import shares plus India’s import role to estimate India’s import volumes relative to likely domestic production in those years.
Contains the exact claim as a commonly asked question, showing this comparison (imports vs domestic production) is a recognized issue in study materials.
Treat this as a prompt to look up the underlying data sources (DGCI&S, Ministry of Commerce, or Directorate of Economics & Statistics) for import and production series for 2013–14 to 2017–18.
NCERT highlights the puzzle of why India imports edible oils despite being agriculturally rich, implying imports are significant relative to domestic supply.
Combine this conceptual point with specific production and import statistics for the period to judge whether imports exceeded production.
Gives India’s position among major oilseed producers and shares of world oilseed output, indicating substantial but not dominant global production capacity.
Use these production-share clues to temper expectations about domestic output—then compare actual national production numbers against import volumes for 2013–14 to 2017–18.
This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.
Login with Google to unlock all statements.
This tab shows concrete study steps: what to underline in books, how to map current affairs, and how to prepare for similar questions.
Login with Google to unlock study guidance.
Discover the small, exam-centric ideas hidden in this question and where they appear in your books and notes.
Login with Google to unlock micro-concepts.
Access hidden traps, elimination shortcuts, and Mains connections that give you an edge on every question.
Login with Google to unlock The Vault.