Q . 95 . 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 & 2
d . Neither 1 nor 2
Answer – a
Import of edible oil
India’s Vegetable Oil imports for the year 2016-17 (November 2016 to October 2017) is reported at 15.44 million tons compared to 14.74 million tons last year (2015-16) and 10.68 million tons in 2012-13, according to Solvent Extractors’ Association of India.
The Vegetable Oil import, which includes edible oil and non-edible oil, has jumped by 45% in last 5 years.
Import of edible oil has sharply increased in last few years due to stagnant Oilseed production and rising demand in the country. India’s dependence on imported Oil has increased to 70% of its requirements.
Customs duty on edible oils
As India’s edible oil imports surge during the past six months, depressing prices of domestically produced mustard, soyabean and other soft oils and in turn cutting returns of farmers and processors, the industry has demanded substantial increase in import duty to curtail imports.
The duty on two major edible oils, namely crude sunflower seed oil and crude canola/rapeseed/mustard is only 25 per cent, while crude soyabean oil attracts 30 per cent duty.