Question 62 from UPSC CSE 2019 - Economics

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?

IASCODEX · Accepted Answer

Correct Option: D. Vegetable oils

Strategy: Examine which crop India is least self-sufficient in, using current affairs and trade patterns. Over recent years, news and economic surveys consistently highlight India's huge vegetable oil import bill. Spices and fruits are less, pulses are significant but still lower than oils. So, by connecting value and scale of demand, vegetable oils stand out clearly.

Key Info: India is the world's largest importer of vegetable oils, accounting for over half of its domestic consumption due to insufficient domestic production of edible oils. Major vegetable oils imported are palm oil (from Indonesia and Malaysia), soybean oil (from Argentina and Brazil), and sunflower oil (from Ukraine and Russia). In value terms (according to Department of Commerce and related trade data for the last five years), total vegetable oil imports range between $10–$13 billion annually, forming the largest component of India's agri-import bill.

Pulses are imported to bridge shortfalls in domestic production, mainly from Myanmar, Canada, and Australia, but the total value remains significantly below that of vegetable oils, typically $1.5–$3 billion per year. Fresh fruits (apples, kiwis, etc.) and spices are imported in comparatively small quantities, with little impact on the overall agri-import bill. Government initiatives such as the National Mission on Edible Oils aim to reduce the import dependence, but the gap remains high due to both population growth and stagnant domestic oilseed yields. Vegetable oil import trends are a major aspect of India's agricultural trade and economic policy.

IASCODEX · Answer

Option A: Spices

IASCODEX · Answer

Option B: Fresh fruits

IASCODEX · Answer

Option C: Pulses