UPSC Prelims 2019 Q84: Indian Economy – International Trade & WTO
- (a) Spices
- (b) Fresh fruits
- (c) Pulses
- (d) Vegetable oils
Answer: (d) Vegetable oils
Explanation
India's Top Agricultural Imports (by value, 2014-19)
| Commodity | Import Value | Rank |
|---|---|---|
| Vegetable oils (edible oils) | US$10-15 billion/year | #1 - highest agri import by value |
| Pulses | US$3-5 billion/year (dropped after MSP push) | #2 |
| Fresh fruits (apples, cashew) | US$1-2 billion/year | Small |
| Spices | India is a NET EXPORTER of spices | Not major import |
India imports about 60% of its edible oil consumption (palm oil from Indonesia/Malaysia, soya oil from Argentina/Brazil, sunflower oil from Ukraine/Russia). This makes vegetable oils India's largest agri import by value.
Answer: (d) Vegetable oils.
Why each option is right or wrong
- (a) Incorrect. India is a NET EXPORTER of spices - imports are small.
- (b) Incorrect. Fresh fruit imports (apples, cashew, etc.) are modest.
- (c) Incorrect. Pulses imports declined post-2016 with domestic MSP push and higher production.
- (d) CORRECT. Vegetable oils (palm oil, soya oil, sunflower oil) are India's largest agri import by value at US$10-15 billion/year - about 60% of edible oil consumption is imported.
Key point
India's #1 agri import = vegetable oils (~US$15 bn/year, ~60% of edible oil consumption). Palm oil dominant from Indonesia/Malaysia. India = net exporter of spices, cereals; net importer of pulses (declining), edible oils (rising).
Remember
Vegetable oils have been India's largest agricultural import by value in the last five years, with imports of US$10-15 billion per year - covering about 60% of India's edible oil consumption. Palm oil, soya oil and sunflower oil are the main imported edible oils.
Common mistakes
- Confusing import/export sides - India exports rice, spices, marine products; imports edible oils, pulses.
- Assuming pulses is #1 import - after MSP-led production surge, pulses imports fell.
- Not knowing the 2021 National Mission on Edible Oils - Oil Palm (NMEO-OP) aims to cut dependence.
Exam tip
India's edible oil mix: Palm oil ~55% of imports (Indonesia, Malaysia). Soya oil ~25% (Argentina, Brazil). Sunflower oil ~15% (Ukraine, Russia). Oil palm expansion targeted under NMEO-OP with focus on Northeast and A&N.
Sources
- Ministry of Commerce - Agricultural imports data
- Ministry of Agriculture - National Mission on Edible Oils