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 statements given above is/are correct?

Statement 1 is correct because India is the world’s largest importer of edible oils, with imports consistently accounting for 60-70% of total consumption over the last decade, far exceeding domestic production. Statement 2 is incorrect because the government actively imposes and fluctuates customs duties on various edible oils to protect domestic farmers and manage food inflation. The core concept tested is India’s structural trade deficit in the agricultural sector and the use of trade tariffs as a regulatory tool.