Consider the following statements about Palm Oil 1 India is one of the major producer...........

Geography Agriculture

Consider the following statements about Palm Oil

1. India is one of the major producers of Palm oil in the world and besides meeting domestic demand palm oil is exported to other countries.

2. Palm oil cultivation in India is concentrated in the foothills of Himalayas in North Indian states.

3. There is 100% FDI in oil palm plantations of India.

Select the correct answer using the codes given below.

2 and 3 only

2 only

3 only

1 and 2 only

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Explanation:

India is one of the major consumers and importers of palm oil and has only negligible share of domestic production in its total consumption of palm oil.
Oil palm is a tropical crop that grows well in hot and humid conditions. Hence, the southern states are best suited for its cultivation.
India indeed has 100% FDI through automatic route in oil palm plantations. But even this has failed to attract investment in the sector and boost domestic production. This is so because of following reasons-
• The oil palm has not yet been notified as a plantation crop and is hence subject to land ceiling laws. This deters investors as they are not able to realize economies of scale and compete in global market.

The import laws of India offer no protection to domestic producers.