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?

[UPSC Civil Services Exam – 2020 Prelims]

(a) 1 only

(b) 2 and 3 only

(c) 2 only

(d) 1, 2 and 3

Answer: (b)

Explanation:

• Statement 1 is incorrect because the Union Government provides subsidies to urea manufacturing units for transportation costs to ensure that the product is available at a uniform maximum retail price throughout the country. Additionally, the government also subsidizes fertilizers to make them accessible at reasonable prices for agricultural purposes.
• On the other hand, statement 2 is correct since urea production involves the combination of ammonia (NH₃) and gaseous carbon dioxide (CO₂) under high pressure and temperature.
• Statement 3 is also correct as Sulphur is obtained as a by-product during natural gas processing and refining of high-sulfur crude oils, and it serves as a crucial ingredient for producing phosphoric acid fertilizer.

Therefore, option (b) is the correct answer.