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 ?
- (a) 1 only ✓ UPSC's answer
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Why the answer is (a)
• Statement 1 is correct: India imports about 14–15 million tonnes of edible oil a year against domestic production of roughly 10–11 million tonnes, meeting 55–60% of consumption through imports.
• Statement 2 is wrong: the Government levies customs duty on imported edible oils and varies it (0–45%) to balance farmer and consumer interests; duties were raised in 2017–18 and cut again in 2021–22.
• Hence 1 only, option (a).
Why the other options are wrong
- (b) 2 only
- Statement 2 is wrong: customs duty is levied on edible oils.
- (c) Both 1 and 2
- Statement 2 is wrong.
- (d) Neither 1 nor 2
- Statement 1 is correct: imports exceed domestic output.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2018, held on 3 June 2018. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.