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Indian Economy - Understanding the basics of Indian economic system

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 by-product of oil refineries. a

Which of the statements given above is/are correct?

This questions was previously asked in

UPSC CSP Previous Year Paper (2020)

1 only

2 and 3 only

2 only

1, 2 und 3

Statement 1 is incorrect: The Union Government subsidies the urea manufacturing units for the cost of transportation to facilitate the availability of urea at the same maximum retail price all over the country. Also, the Government is subsidising fertilizers for their availability at reasonable prices for agricultural purposes.
Statement 2 is correct: Ammonia is used to produce various nitrogenous fertilisers(ammonium nitrate, urea, ammonium phosphate and ammonium sulphate). Ammonia is obtained using Haber’s process. (wherein Nitrogen and hydrogen are mixed in the ratio of 1:3, this Hydrogen is provided by breaking methane (CH4) from natural gas). A typical modern ammonia-producing plant first converts natural gas (i.e., methane) or LPG (liquefied petroleum gases such as propane and butane) or petroleum naphtha into gaseous hydrogen. The method for producing hydrogen from hydrocarbons is known as steam reforming.
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. Processing of high-sulfur natural gas is also a large source of sulfur supply.

Hence option 2nd is correct.

By: Abhipedia