Q54.
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?
Answer
B
Explanation
The Government of India subsidizes fertilizers to ensure that fertilizers are easily available to farmers and the county remains self-sufficient in agriculture. The same has been achieved largely by controlling the price of fertilizer and the amount of production For example, as per the New Urea Policy of 2015, the government fixes the market price of urea. Also, there is a fixed subsidy component as well. Similarly, for Phosphorous and Potassium, as per the Nutrient Based Subsidy Scheme of 2010, subsidy is provided based on nutrient content per kg of fertilizer. Hence statement 1 is not correct. Fertilizer production uses 1.2% of the world’s total energy out of which 90% is used for ammonia