Q10.
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?
Answer
A
Explanation
Statement 1 is correct: India's demand for edible oils is significantly higher than domestic production, leading to dependence on imports (60% of requirement). Statement 2 is not correct: Government imposes customs duty on edible oils to safeguard domestic oil crushing industry. Crude sunflower seed oil and crude canola/rapeseed/mustard attract 25% duty, while crude soyabean oil attracts 30% duty.