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. Select the correct answer using the code given below:

QUESTION

Hard

Economy

Prelims 2020

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:

Select an option to attempt

Explanation

Statement 1 is not correct. The Government of India subsidizes fertilizers to ensure that fertilizers are easily available to farmers and the country remains self-sufficient in agriculture. This 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.

Statement 2 is correct. Fertilizer production uses 1.2% of the world's total energy out of which 90% is used for ammonia production, which is a key ingredient in the production of nitrogen fertilizers. Ammonia can be produced from natural gas.

Statement 3 is correct. Sulfur is a major by-product of oil refining and gas processing. Most crude oil grades contain some sulfur, most of which must be removed during the refining process to meet strict sulfur content limits in refined products. Also, Sulphur is used in phosphoric acid fertilizer (There is a process known as 'The Wet Process' for producing the same).

Hence, option B is the correct answer.

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