With reference to chemical fertilizers in India, consider the following statements : 1. At present, the retail price of chemical fertilizers 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 ?
- (a) 1 only
- (b) 2 and 3 only ✓ UPSC's answer
- (c) 2 only
- (d) 1, 2 and 3
Why the answer is (b)
• Statement 2 is correct: urea is made by reacting ammonia with CO2, and ammonia in India is produced mainly from natural gas (or imported LNG) by steam reforming.
• Statement 3 is correct: elemental sulphur, recovered as a by-product when refineries desulphurise crude oil, is burnt to make sulphuric acid, which converts rock phosphate into phosphoric acid for DAP/SSP.
• Statement 1 is wrong: urea's retail price is fixed by the Government (statutorily controlled), and P&K fertiliser prices are influenced by nutrient-based subsidy; they are not purely market-driven.
• Hence 2 and 3 only, option (b).
Why the other options are wrong
- (a) 1 only
- Statement 1 is wrong: urea prices are administered.
- (c) 2 only
- Statement 3 on refinery sulphur is also correct.
- (d) 1, 2 and 3
- Statement 1 is wrong.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.