Q. With reference to Palm oil, consider the following statements:
1. It is a perennial plantation crop.
2. Its plantation can lead to a decline in forest cover and biodiversity of a region.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:
  • Statement 1 is correct: Oil palm is a low maintenance, high yield, perennial plantation crop. It is one of the essential food items such as onions and pulses and widely used by a majority of Indians. 
  • Statement 2 is correct: Studies on agrarian change in Southeast Asia have shown that increasing oil palm plantations is a major reason for the region’s declining biodiversity. For example: Indonesia has seen a loss of 1,15,495 million hectares of forest cover in 2020, mainly to oil palm plantation 

Source: Article