Previous Year Question
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?
Spices
Fresh fruits
Pulses
Vegetable oils
Correct Answer: D
Detailed Solution
The question compares the total value of imports, not merely the physical quantity imported. During the approximately five-year period preceding the question, vegetable oils accounted for the highest import value among India’s agricultural imports.
Major edible oils imported by India include:
Palm oil.
Soybean oil.
Sunflower oil.
Various crude and refined forms of these oils.
India’s domestic demand for edible oils substantially exceeded the supply obtained from domestic oilseed production and processing. During the period relevant to the question, approximately 60% of India’s edible-oil requirement was being met through imports. Vegetable oils consequently formed a very large component of agricultural imports by value.
Important reasons for high vegetable-oil imports included:
Rising demand associated with population and income growth.
Relatively low yields of domestic oilseed crops.
Dependence of oilseed production on rain-fed cultivation.
Competitive international prices of oils such as palm oil.
A persistent gap between domestic oilseed production and consumption requirements.
Examination of the options:
Option (a): India is a major producer and exporter of several spices. Although some spices are imported, their import value was below that of vegetable oils.
Option (b): Apples, dates, almonds and certain other fruits are imported, but their combined import value was lower.
Option (c): Imports of gram, lentils, pigeon pea and peas increased in certain years, particularly when domestic production declined. Nevertheless, vegetable oils remained ahead in cumulative import value.
Option (d): Because of large import volumes and high dependence on overseas supply, vegetable oils constitute the correct answer.
Dependence on imported edible oils also affects India’s current account, domestic oilseed farmers, MSP policy and consumer-price inflation. Changes in international prices or the rupee exchange rate can quickly influence domestic edible-oil prices.