Q10. 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?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: A
- Statement 1 is correct: India imports about 14-15 million tonnes of edible oil annually to meet domestic demand. At present, the import duty on crude soybean oil is 3.0 per cent, crude sunflower oil 25 per cent and crude rapeseed oil 25 per cent. According to ICRA, India occupies a prominent position in the world oilseeds industry with contribution of around 10% in worldwide production. But the demand of 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 levies 35% and 45% import duty on all crude and refined edible oils respectively. While in 2018 the import duty on Olive oil was 40%
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