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 two statements given above is/are correct?
Explanation
Statement 1 is correct: India is the world's largest importer of edible oils. For the last several years, the domestic production of edible oils has been significantly lower than the quantity imported. Domestic production typically accounts for only about 35-40% of the total consumption, while imports fulfill the remaining 60-65% of the demand.
Statement 2 is incorrect: The Government of India does impose customs duties on imported edible oils. These duties (such as Basic Customs Duty and Agriculture Infrastructure and Development Cess) are adjusted periodically to balance the interests of domestic consumers and local oilseed farmers. The claim that the government does not impose 'any' customs duty on 'all' imported edible oils is factually incorrect.