Consider the following statements:The quantity of imported edible oils is more than the domestic pro

Question

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?

Accepted Answer

Statement 1 is correct. India occupies a prominent position in the world oilseeds industry with a contribution of around 10% in worldwide production. But the demand for edible oils (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. The Government imposes customs duty on edible oils to safeguard the interests of the 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.