Consider the following statements:
- The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
- 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?
[UPSC Civil Services Exam – 2018 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
- India holds a prominent position in the global oilseeds industry, contributing approximately 10% to the worldwide production.
- However, the demand for edible oils, including those extracted from oilseeds and palm oil, surpasses the domestic production capacity, resulting in a heavy reliance on imports to meet 60% of the country’s requirements. Hence, statement 1 is correct.
- In order to safeguard the interests of the domestic oil crushing industry, the government imposes customs duty on edible oils.
- Specifically, crude sunflower seed oil and crude canola/rapeseed/mustard attract a duty of 25 percent, while crude soybean oil is subject to a 30 percent duty. Therefore, statement 2 is incorrect.