Q. 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.
Which of the statements given above is/are correct? (UPSC Prelims 2020)
Answer:
2 and 3 only
Notes: The correct answer is
[B] 2 and 3 only. In India, the fertilizer sector is heavily regulated to ensure affordability for farmers and self-sufficiency in production.
- Retail Prices (Statement 1 – Incorrect): The Government of India strictly controls the price of Urea through the New Urea Policy. For Non-Urea fertilizers (P&K), while prices were technically decontrolled under the Nutrient Based Subsidy (NBS) scheme in 2010, the government still informally influences prices by fixing subsidy rates. Therefore, prices are administered/subsidized, not purely market-driven.
- Ammonia Production (Statement 2 – Correct): Ammonia (NH3) is a critical intermediate for nitrogenous fertilizers like Urea. Most industrial ammonia in India is produced via the Haber-Bosch process using natural gas (methane) as the primary feedstock for hydrogen.
- Sulphur Sourcing (Statement 3 – Correct): Sulphur is essential for manufacturing phosphoric acid and SSP fertilizers. A significant portion of elemental sulphur is recovered as a by-product during the desulphurization of crude oil in petroleum refineries and the processing of natural gas.
Current trends show the government moving toward "One Nation, One Fertilizer" (Bharat brand) to standardize quality and branding across the country while maintaining the subsidy regime.