SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    India continues to be dependent on imports to meet the requirement of oilseeds in the country because
    1. Farmers prefer to grow food grains with highly remunerative support prices
    2. Most of the cultivation of oilseed crops continues to be dependent on rainfall
    3. Oil from the seeds of tree origin and rice bran have remained unexploited
    4. It is far cheaper to import oilseeds than to cultivate the oilseed crops
    Which of the statements given above is/ are correct?

    A)  1 and 2

    B)  1, 2 and 3

    C)  3 and 4

    D)  1, 2, 3 and 4

    Correct Answer: B

    Solution :

    [b] Despite being one of the largest producers of oilseeds in the world, India's import dependence has doubled over the past few years owing to expanding consumption of edible oils and stagnating production of oilseeds. The country imported vegetable oils worth $10 billion in 2013- 14 compared with $5 billion in 2007-08. The farmer gets no incentive to invest in oilseeds, in competition with cheap imported oils in the absence of any import restrictions. Avoidable costs such as multiple handling due to APMC regulations, mandi cess, etc. make domestic manufacture of edible oil an expensive proposition, limiting the scope for value-addition.

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