With reference to chemical fertilizers in India, consider the following statements:
- At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
- Ammonia, which is an input of urea, is produced from natural gas.
- Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 2 — 2 and 3 only
Statements 2 and 3 are correct, while Statement 1 is incorrect. The Government of India maintains significant control over fertilizer pricing through subsidy mechanisms and policies like the New Urea Policy 2015, ensuring agricultural affordability and self-sufficiency. Ammonia, a critical input for urea production, is indeed produced from natural gas through industrial processes. Sulphur, essential for phosphoric acid fertilizer production via the Wet Process, is naturally generated as a by-product during crude oil refining and gas processing operations.
✅ Statement 2 – Correct: Ammonia is produced from natural gas and accounts for 90% of energy consumption in fertilizer production, being a key ingredient in nitrogen fertilizers.
✅ Statement 3 – Correct: Sulphur is a major by-product of oil refining and gas processing, used in phosphoric acid fertilizer production through the Wet Process.
❌ Statement 1 – Incorrect: Fertilizer prices in India are not fully market-driven; the Government subsidizes and administers prices through policies like the New Urea Policy 2015 to ensure affordability and agricultural self-sufficiency.
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