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?
This questions was previously asked in
UPSC CSP Previous Year Paper (2018)
Both 1 and 2
Incorrect AnswerNeither 1 nor 2
Incorrect AnswerExplanation:
Indian contributes around 10% of world production in oil seeds industry. The demand of edible oils is significantly higher than the domestic production which is matched though imports which constitute about 60 % of the total requirement. Statement 1 is correct.
(extracted from oilseeds in addition to palm oil) is significantly higher than the domestic production, leading to dependence on imports (60% of requirement). Statement 2 is not correct.
Government imposes customs duty on edible oils to safeguard the interests of domestic oil crushing industry. The duty on two major edible oils, namely crude sunflower seed oil and crude canola/rapeseed/mustard is 25 per cent, while crude soyabean oil attracts 30 per cent duty.
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By: Abhipedia