Despite being a major producer of Oilseeds India continues to be one of the largest importers of Edi...........

Indian Economy Agriculture

Despite being a major producer of Oilseeds, India continues to be one of the largest importers of Edible Oil in world. What could be the possible reason behind this?

1. Agro-climatically, most parts of India are not suited for cultivation of Oilseeds.

2. Oilseeds production is largely confined to rain-fed areas.

3. Imported vegetable oil and palm oil is cheaper than that produced in domestic market.

Select the correct answer using codes given below

1 and 2 only

2 and 3only

2 only

All of the above

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Explanation:

- Statement 1: Most parts of India are actually suitable for oilseed cultivation, with regions like Gujarat, Rajasthan, and Madhya Pradesh leading in production. So, this statement isn't entirely accurate.

- Statement 2: Oilseed production is indeed largely confined to rain-fed areas, making it vulnerable to fluctuating rainfall and impacting consistent production levels.

- Statement 3: Imported vegetable oil and palm oil are often cheaper due to economies of scale and lower production costs in exporting countries, making imports more attractive.

Correct Answer: Option 2 - 2 and 3 only