Q10 · UPSC Prelims 2018 · Set A · Economy

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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?

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (a) 1 only

Explanation

  1. A

    1 only

    (a) 1 only. (a) Official key: For years India has imported more edible oil than it produces domestically. Statement 2 is false: customs duties are levied on edible-oil imports and are used as a price and farmer-protection tool. Only statement 1 is correct.

  2. B

    2 only

    (b) 2 only. The government does impose customs duty on imported edible oils; they are not a duty-free special case across the board. This letter is not the key.

  3. C

    Both 1 and 2

    (c) Both 1 and 2. The duty claim is wrong, so both-correct is not the key.

  4. D

    Neither 1 nor 2

    (d) Neither 1 nor 2. Import volumes exceeding domestic output is a well-established fact, so ‘neither’ is not the key.

Summary. Official key is (a) 1 only. India’s edible-oil consumption outruns domestic crush, so imports exceed production. Customs duty on oils is a regular tariff instrument, not a blanket waiver. Honour the stored letter (a).

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2019 · Q48 · General Studies · 2 marks

    Consider the following statements: 1. Coal sector was nationalized by the Government of India under Indira Gandhi. 2. Now, coal blocks are allocated on lottery basis. 3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self- sufficient in coal product. Which of the statements given above is/are correct?

    View answer →

  2. 2019 · Q84 · General Studies · 2 marks

    Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

    View answer →

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