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Prelims 2020 paper

UPSC CSE Prelims 2020 · Question 94 · Agriculture economy, MSP & food security

With reference to chemical fertilizers in India, consider the following statements: At present,…

Prelims 2020 · Q94

Agriculture economy, MSP & food security Medium

With reference to chemical fertilizers in India, consider the following statements:

  1. 1.At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
  2. 2.Ammonia, which is an input of urea, is produced from natural gas.
  3. 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 & explanation

Answer: (b) 2 and 3 only

Statements 2 and 3 are correct; statement 1 is not. Urea, India's main fertiliser, is sold at a maximum retail price fixed by the Government, so the retail price of chemical fertilizers is not wholly market-driven.

  • ✗ 1. Urea is sold to farmers at a statutorily notified Maximum Retail Price, whatever its cost of production. Only phosphatic and potassic fertilizers (under the Nutrient Based Subsidy scheme) have prices set by the companies, so 'not administered' is not true for fertilizers in general.
  • ✓ 2. Ammonia is made from hydrogen and nitrogen, and natural gas is the main source of the hydrogen (steam reforming). Ammonia is then reacted to make urea.
  • ✓ 3. India's elemental sulphur output is largely recovered as a by-product at petroleum refineries. It is turned into sulphuric acid, which is used to make phosphoric acid from rock phosphate.

Remember · Urea has a Government-fixed MRP; P&K prices are company-set under the NBS scheme. Ammonia comes from natural gas; by-product sulphur comes from refineries.

Sources

Question and answer: UPSC's official GS Paper I (2020, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·

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