Agricultural shortfall and import decision: Evaluate Statements I and II — 'There is a sharp decline in oilseed production this year' and 'Government has decided to increase the import quantum of edible oil' — and identify the correct cause–effect linkage.

Difficulty: Easy

Correct Answer: Statement I is the cause and statement II is its effect

Explanation:

Given data

Concept/Approach

Domestic shortfall in the input (oilseeds) or output channel leads to higher imports to stabilize availability/prices.

Step-by-step evaluation

1) Lower domestic production → potential supply gap in edible oil.2) Policy response → increase import quantum.3) Therefore I (cause) → II (effect).

Common pitfalls

Final Answer
Statement I is the cause and statement II is its effect.

Discussion & Comments

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