UPSC Prelims 2018 · Question 10 of 99

UPSC Prelims 2018 question on Edible Oil Imports

Consider the following statements:

1. The quantity of imported edible oils is more than the edible oil production of the country 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?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: A. 1 only

Verdict

Only statement 1 is correct, so the answer is (a) 1 only.

Statement by statement

Statement 1 is CORRECT. India contributes around 10 percent of world oilseeds production, but demand for edible oils runs well ahead of domestic output, leaving the country dependent on imports for roughly 60 percent of its requirement.

Statement 2 is INCORRECT. Customs duty is imposed on imported edible oils to safeguard the domestic oil crushing industry. Crude sunflower seed oil and crude rapeseed or mustard oil attracted 25 percent duty and crude soyabean oil 30 percent, which disproves any blanket exemption.

Source

Economic Times report on India's dependence on edible oil imports.

How to crack it

Statement 2 carries the absolutes does not impose any and all the imported edible oils, and one counter example destroys it. You need no duty schedule, only the knowledge that protecting oilseed farmers is a standing objective, which makes total exemption implausible. Once statement 2 falls, (a) and (d) survive, and (d) needs statement 2 true, so (a) follows.

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