With reference to chemical fertilisers in India, consider the following statements:1. At present, the retail price of chemical fertilisers is market- driven and not administered by the Government.2. Ammonia, which is an input of urea, is produced from natural gas.3. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.Which of the statements given above is/are correct?
✓ Correct answer: b) 2 and 3 only
ExplanationStatement 1 is incorrect : The Union Government provides subsidies on fertilizers to ensure their affordability for farmers and to maintain agricultural self-sufficiency.As a result, fertilizer prices in India are regulated by the government.For ex- ample , the retail price of urea is directly controlled, while non- urea fertilizers fall under the Nutrient-Based Subsidy (NBS) scheme, where prices have some market influence but still re- ceive government support.Statement 2 is correct : Ammonia (NH₃) is a key raw material for making urea.It is produced by reacting natural gas (CH₄) with steam to extract hydrogen, which then combines with nitro- gen from the air to form ammonia in the Haber-Bosch process.Statement 3 is correct : Sulphur is a key ingredient in the pro- duction of phosphoric acid, which is used to make phosphatic fertilizers (e.g., DAP - Di-Ammonium Phosphate).It is ob- tained as a by-product from oil refineries and natural gas pro- cessing plants.37
Practice more Economy PYQs
Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.
📈 Economy PYQs →