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Q10 (IAS/2018) Economy › Agriculture & Rural Economy › Agricultural trade patterns Official Key

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 ?

Result
Your answer:  ·  Correct: A
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. [1] https://desagri.gov.in/wp-content/uploads/2024/04/2018-19-Trade-Policy-and-the-Edible-Oilseed-Sector-of-India.pdf
  2. [2] https://desagri.gov.in/wp-content/uploads/2024/04/2018-19-Trade-Policy-and-the-Edible-Oilseed-Sector-of-India.pdf
  3. [3] https://desagri.gov.in/wp-content/uploads/2024/04/2018-19-Trade-Policy-and-the-Edible-Oilseed-Sector-of-India.pdf
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PROVENANCE & STUDY PATTERN
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Consider the following statements : 1. The quantity of imported edible oils is more than the domestic production of edible oils in the l…
At a glance
Origin: Mostly Current Affairs Fairness: Low / Borderline fairness Books / CA: 0/10 · 5/10
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This 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.

How this question is built

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?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 6: Environmental Issues > Consumption of palm oil in India > p. 117
Strength: 5/5
“Palm oil has dominated Indian imports since the last two decades, for its logistical advantages, contractual flexibility, and consumer acceptance. Change in consumption patterns, availability, pricing, and policy changes have influenced palm oil's contribution to India's edible oils import market. India is the largest importer of palm oil, which is also the lowest priced oil. Palm oil contributes to around 74% of the total edible oils that are imported into the country. Almost good of the palm oil imported and produced domestically is used for edible food purposes, while the remaining is used for industrial-edible purposes. Palm oil is now the single largest consumed vegetable oil in India.”
Why relevant

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.

How to extend

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.

Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 6: Environmental Issues > When forest shrink, so does the horde of endangered species > p. 116
Strength: 4/5
“When forest shrink, so does the horde of endangered species. Palm oil has emerged as the main global source of vegetable oil due to adequate availability, versatility in usage, higher yield and lower cost, as compared to other vegetable oils. Palm oil is generally sold in the name of vegetable oil. Palm oil forms 33% of the world vegetable oil production mix. Indonesia and Malaysia contribute almost 70% of production of palm oil, whereas China and India constitute 34% of imports. Global edible oil consumption has grown from 83 Million Metric tonnes in 20zo to 58 Mn MT in 20zor.”
Why relevant

Notes India is a major importer (with China) and that global consumption and trade are large, indicating substantial import dependence for edible oils.

How to extend

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.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > 2020 > p. 508
Strength: 3/5
“Consider the following statements: • 1. The quantity of imported 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? • (b) 2 only • (a) 1 only • (d) Neither 1 nor 2 • (c) Both 1 and 2”
Why relevant

Contains the exact claim as a commonly asked question, showing this comparison (imports vs domestic production) is a recognized issue in study materials.

How to extend

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.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 8: International Trade > Changing Patterns of the Composition of India's Import > p. 88
Strength: 3/5
“Why does India import edible oil in spite of being an agriculturally rich country? Select five most important and five least important items and represent them by bar diagram. Can you identify some items of imports for which substitutes can be developed in India?: ; Col2: • Based on Table 8.5, few activities may be undertaken: Arrange the items in ascending or descending order and write the names of the first five major items of India's import list of 2021-22. Why does India import edible oil in spite of being an agriculturally rich country? Select five most important and five least important items and represent them by bar diagram.”
Why relevant

NCERT highlights the puzzle of why India imports edible oils despite being agriculturally rich, implying imports are significant relative to domestic supply.

How to extend

Combine this conceptual point with specific production and import statistics for the period to judge whether imports exceeded production.

Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 12: Major Crops and Cropping Patterns in India > Oilseed > p. 30
Strength: 3/5
“India is among the ffth largest vegetable oil economies in the world after USA, China, Brazil, and Argentina. In the agricultural economy of India, oilseeds are important next only to food grains in terms of area, production and value. At present, India accounts for about 12-15% of world's oilseeds area, 7-8% of world's oilseeds output and 9-10% of world's edible oils consumption. Te diverse agroecological conditions in the country are favourable for growing all the nine annual oilseeds which include seven edible oilseeds, viz. groundnut, rapeseed-mustard, soybean, sunfower, sesame, and safower, and two non-edible sources, viz. castor and linseed (Fig.”
Why relevant

Gives India’s position among major oilseed producers and shares of world oilseed output, indicating substantial but not dominant global production capacity.

How to extend

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.

Statement analysis

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