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Q4 (IAS/2020) Economy › Agriculture & Rural Economy › Fertilizers and soil nutrients Official Key

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 ?

Result
Your answer: —  ·  Correct: B
Explanation

The correct answer is Option 2 (2 and 3 only). Below is the comprehensive explanation:

  • Statement 1 is incorrect: The retail price of chemical fertilizers in India is not entirely market-driven. Urea is under statutory price control, and its Maximum Retail Price (MRP) is fixed by the Government. For Non-Urea fertilizers (DAP, MOP, NPK), the government implements the Nutrient Based Subsidy (NBS) scheme, where it provides a fixed subsidy, though it still monitors prices to keep them affordable.
  • Statement 2 is correct: Ammonia ($NH_3$) is a critical precursor for Urea. In India, the majority of ammonia is produced through the Haber process using natural gas (methane) as the primary feedstock for hydrogen.
  • Statement 3 is correct: Sulphur is a vital raw material for manufacturing phosphoric acid. It is primarily obtained as a by-product during the desulphurization of crude oil in petroleum refineries and natural gas processing.

Therefore, since statements 2 and 3 are factually accurate while statement 1 is false, Option 2 is the right choice.

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Q. With reference to chemical fertilizers in India, consider the following statements : 1. At present, the retail price of chemical fertiliz…
At a glance
Origin: Books + Current Affairs Fairness: Moderate fairness Books / CA: 6/10 · 4/10

This question perfectly bridges Economy (Subsidy Policy) and Geography (Industrial Inputs). Statement 1 is the 'Gatekeeper'—knowing Urea is still under price control eliminates the extreme 'market-driven' claim. Statements 2 and 3 reward those who studied the *supply chain* of industries, not just the final output.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
As of 2020, are retail prices of chemical fertilizers in India market-driven (decontrolled) or administered by the Government?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.4 Fertilizer Subsidies > p. 287
Presence: 5/5
“The four major fertilizers consumed in India are Urea, Diammonium Phosphate (DAP), Muriate of Potash (MoP) and Complex Fertilizers. Urea prices are regulated/fixed by the Govt, but the prices of DAP, MoP and Complex Fertilizers have been deregulated (market driven). Fertilizers provides three major nutrients which increase agriculture yields. The optimal N:P:K ratio varies across soil types but is generally around 4:2:1”
Why this source?
  • Explicitly states urea prices are regulated/fixed by the Government while DAP, MoP and Complex Fertilizers have been deregulated (market driven).
  • Directly contrasts the regulatory status of different fertilizer categories, supporting a mixed (partially administered, partially market-driven) regime.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > DAP (P) and MOP (K) and Complex Fertilizers (NPK) [Nutrient Based Subsidy] > p. 290
Presence: 5/5
“This means that the producers and importers are free to sell these fertilizers at any price but since they receive a fixed subsidy from the government and due to competition in the market, they reduce the market price in proportion to the subsidy. The government involvement in DAP and MOP fertilizers is limited to paying producers and importers a fixed nutrient-based subsidy which works out to be roughly 35 percent of the cost of production. The department of fertilizer has fixed the subsidies for the various nutrients for the year 2020-21 at the following rates: nitrogen (N) at Rs 18.78 per kg, Phosphorus (P) at Rs 14.88 per kg, Potash (K) at Rs 10.11 per kg and Sulphur (S) at Rs.”
Why this source?
  • Says producers and importers of DAP and MOP are free to sell these fertilizers at any price, i.e., market-driven.
  • Explains government role is limited to paying a fixed nutrient-based subsidy for these fertilizers, not price control.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Following are some of the benefits of "new urea policy 2015": > p. 289
Presence: 5/5
“Presently Govt. intervenes in the production and distribution of urea in the following ways: • Govt. sets a controlled Maximum Retail Price (MRP) at which urea must be sold to the farmers which is Rs. 5.36/kg (Rs. 268/ per bag of 50 kgs) excluding tax (imported/ international price is approximately Rs. 20/kg).• Government provides subsidy to urea plants based on the difference between the MRP and cost of production (group-based norms) and is paid to the fertilizer company.• Only three companies are allowed to import urea into India (canalisation).• About half of the movement of fertilizer is directed i.e., the government tells manufacturers and importers how much to import and where to sell their urea.”
Why this source?
  • Describes Government-set controlled Maximum Retail Price (MRP) for urea and subsidy payment mechanism to cover cost difference.
  • Notes other administrative controls for urea (import canalisation and directed movement), reinforcing that urea retail price is administered.
Statement 2
In India, is ammonia used as an input for industrial urea fertilizer production?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Ammonia, a key input in urea manufacturing, is industrially produced through the Haber-Bosch process, primarily from natural gas. ... This ammonia is then used to produce various nitrogen fertilizers, including urea"
Why this source?
  • Explicitly identifies ammonia as a key input in urea manufacturing.
  • Describes industrial production of ammonia (Haber-Bosch) and its subsequent use to produce urea.
Web source
Presence: 5/5
"is obtained through an industrial process known as the Haber-Bosch process. ... This ammonia is subsequently used to manufacture urea, which is one of the most common nitrogenous fertilizers used by farmers."
Why this source?
  • States ammonia is produced by the Haber-Bosch process from nitrogen and hydrogen.
  • Says this ammonia is subsequently used to manufacture urea, linking ammonia as the input for urea.
Web source
Presence: 4/5
"Ammonia, which is an input of urea, is produced from natural gas."
Why this source?
  • Direct, concise statement that ammonia is an input of urea.
  • Connects ammonia production to natural gas, supporting industrial production context.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > 2020 > p. 357
Strength: 5/5
“Which of the statements given above is/are correct? (a) 1 only (b) 2 only• (c) Both 1 and 2 (d) Neither 1 nor 2 5. With reference to chemical fertilisers in India, consider the following statements: • 1. At present, the retail price of chemical fertilisers 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 fertiliser, is a by-product of oil refineries. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3 6.”
Why relevant

Explicitly states a rule-like claim: 'Ammonia, which is an input of urea, is produced from natural gas.'

How to extend

A student could combine this with basic chemistry knowledge (that industrial urea is made from ammonia + CO2 via the urea process) to infer ammonia is an industrial input to urea production.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > FERTILISERS > p. 303
Strength: 5/5
“fertilisers at affordable prices for maximising agricultural production. Department also administers 9 fertiliser Public Sector Undertakings (PSUs). • Present status of fertiliser production and consumption in India: • In India, mainly three variants of fertilisers are produced at present: urea, diammonium phosphate (DAP) and complex fertilisers. • Urea (for nitrogen) is the most produced (86%), most consumed (74%) and most imported (74%) among all fertilisers in India. • In the case of phosphatic fertilisers, 56.5 per cent indigenous capacity has been developed to meet domestic requirements At present, there are 31 urea manufacturing units in the country, out of which 28 urea units use Natural Gas (using domestic gas/ LNG/CBM) and remaining 3 urea units use Naphtha as feedstock.”
Why relevant

Gives an industry-level pattern: of 31 urea units, 28 use natural gas (domestic gas/LNG/CBM) and 3 use naphtha as feedstock.

How to extend

Knowing natural gas is a common feedstock for producing ammonia (via reforming to make hydrogen), a student can infer these plants likely produce ammonia on-site or use ammonia derived from that feedstock for urea manufacture.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Previous Years Questions > p. 299
Strength: 4/5
“The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus [2019] • (a) transportation cost only• (b) interest cost only• (c) procurement incidentals and distribution cost• (d) procurement incidentals and charges for godowns• 3. With reference to chemical fertilizers in India, consider the following statements: [2020] 1. At present, the retail price of chemical fertilizers is market driven and not administered by the Government • 2. Ammonia, which 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 following statements given above is/are correct?• (a) 1 only• (b) 2 and 3 only• (c) 2 only• (d) 1, 2 and 3”
Why relevant

Repeats the triad of related facts in exam-style form: that ammonia is an input of urea and is produced from natural gas (statement presented for evaluation).

How to extend

A student can treat this as authoritative textbook framing and check standard industrial links (natural gas → ammonia → urea) to judge the statement's plausibility.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > FERTILISER INDUSTRY > p. 50
Strength: 3/5
“85% of the urea requirement of the country, while the per hectare consumption was about 130 kg per hectare. The public sector has been playing a dominant role in the fertiliser industry. The first state-owned fertiliser unit was set up in 1951 at Sindri in Bihar (Jharkhand) which was followed by another plant at Nangal in Punjab. At present, there are, 57 fertiliser units manufacturing a wide range of nitrogenous and complex fertilisers, 29 units producing urea, and 9 units producing ammonium sulphate as a by-product. Besides there are 68 medium and small scale units in operation producing single superphosphate.”
Why relevant

Describes the fertiliser industry structure and nitrogenous products, noting many units produce urea and some produce ammonium sulphate as a by-product.

How to extend

From industry outputs (nitrogenous fertilisers and ammonium salts) one can infer widespread industrial handling of ammonia/nitrogen intermediates that are used to make urea.

Statement 3
In India, is ammonia for urea production manufactured from natural gas?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > FERTILISERS > p. 303
Presence: 5/5
“fertilisers at affordable prices for maximising agricultural production. Department also administers 9 fertiliser Public Sector Undertakings (PSUs). • Present status of fertiliser production and consumption in India: • In India, mainly three variants of fertilisers are produced at present: urea, diammonium phosphate (DAP) and complex fertilisers. • Urea (for nitrogen) is the most produced (86%), most consumed (74%) and most imported (74%) among all fertilisers in India. • In the case of phosphatic fertilisers, 56.5 per cent indigenous capacity has been developed to meet domestic requirements At present, there are 31 urea manufacturing units in the country, out of which 28 urea units use Natural Gas (using domestic gas/ LNG/CBM) and remaining 3 urea units use Naphtha as feedstock.”
Why this source?
  • States that the vast majority of urea manufacturing units use Natural Gas (domestic gas/LNG/CBM) as feedstock.
  • Implicates that the urea production process in India is predominantly gas-based, which is the route for producing ammonia intermediates used in urea.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Urea Subsidy > p. 288
Presence: 5/5
“Under the "new urea policy 2015": • Government implemented the pooling of gas for urea from 1st July 2015 onwards. Under this policy the domestic gas is pooled with imported Re-gasified Liquified Natural Gas (R-LNG) to provide natural gas at uniform delivered price to all-Natural Gas grid connected urea manufacturing plants for the purpose of manufacturing of urea.• All the gas-based urea plants have been placed in three categories based on group specific energy norms (how much gas is required to produce a particular quantity of urea). Urea plants falling in same category will be getting the same amount of subsidy per KG as fixed by the government (based on normative cost of each group plants), no matter what is their actual cost of production.”
Why this source?
  • Describes policy of pooling domestic and imported gas to supply natural gas to gas-grid-connected urea plants for manufacturing urea.
  • Refers explicitly to 'gas-based urea plants', confirming that urea (and its ammonia input) is produced via natural gas feedstock.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Following are some of the benefits of "new urea policy 2015": > p. 289
Presence: 4/5
“diversion to industries will also be lesser. Farmers pay an additional price of only Rs.14/ per bag of neem coated urea. Issues with Urea Subsidy: There are around 30 companies involved in domestic urea production and 3 companies are allowed to import urea into the country. No new capacity has been added in the past 17 years due to lack of an appropriate policy framework. It has led to the stagnation of domestic production of urea at 25MT, but the consumption has increased to around 33 MT, implying 8 MT of imports. The limited availability of domestic gas has also led urea players to depend on costly imported gas for production.”
Why this source?
  • Notes limited availability of domestic gas has forced urea producers to depend on imported (costly) gas for production.
  • Links gas supply (domestic or imported) directly to urea production, reinforcing that natural gas is the feedstock used.
Statement 4
In India, is sulphur used as a raw material in production of phosphoric acid for phosphate fertilizers?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > FERTILISER INDUSTRY > p. 50
Presence: 5/5
“For a fertiliser industry, the basic raw materials are neptha, rockphosphate, sulphur gypsum, and smelter gases. In case gas is not available, the plant may be operated with the help of coke and cokeoven-gas. In India, we have coal based fertiliser plants at Bhilai and Korba (Chhattisgarh), Durgapur (West Bengal), Ramgundam (Andhra Pradesh), Jamshedpur and Sindri (Jharkhand), and Rourkela and Talcher (Odisha). Neyveli is based on lignite while Hazira (Gujarat) and Thal (Maharashtra) use natural gas from the Bombay High. Most of the fertiliser plants are located close to the petroleum refineries. Plants near sea are based on imported material.”
Why this source?
  • Explicitly lists sulphur among the basic raw materials for the fertiliser industry.
  • Pairs rockphosphate (the phosphate source) with sulphur as primary inputs for fertiliser manufacture.
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > Table 11.5 > p. 53
Presence: 4/5
“• Undertakings: The Paradeep Phosphate Limited (PPL); Year of establishment: 1981; Location: Bhubaneswar, Odisha; Remark: First plant was commissioned in 1986 and second phase was completed in 1992 Produces phosphoric and sulphuric acid It may be seen from the (Fig. 11.15) that the Indian fertiliser companies produced 32.4 MT of fertiliser during 2012–13 . The total availability was short of demand and was met through imports. The urea production increased to 22.6 MT during 2012–13 from 22.0 MT in FY 2011–12.”
Why this source?
  • Names an Indian plant (Paradeep) that produces both phosphoric acid and sulphuric acid.
  • Shows domestic production capacity for both acids, implying industrial linkage between sulphur/sulphuric acid and phosphatic fertiliser production.
Statement 5
In India, is sulphur commonly recovered as a by-product from oil refineries?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Sulfur, which is a key raw material for phosphoric acid fertilizers, is primarily sourced from oil refineries where it is produced as a by-product."
Why this source?
  • Explicitly states sulfur is sourced from oil refineries as a by-product.
  • Connects this sulfur use to fertilizer production (phosphoric acid), directly tying to the Indian fertilizer context.
Web source
Presence: 4/5
"Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil"
Why this source?
  • Directly labels sulphur as a by-product of oil (refineries), supporting the claim.
  • Mentions sulphur's role as a raw material for phosphoric acid fertilizer, reinforcing context.
Web source
Presence: 5/5
"Sulfur, essential in the production of phosphoric acid fertilizers, is indeed a by-product of oil refineries."
Why this source?
  • Affirms that sulfur used in phosphoric acid fertilizers is a by-product of oil refineries.
  • Describes industrial context (Contact process) linking recovered sulfur to fertilizer manufacture.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > 2020 > p. 357
Strength: 4/5
“Which of the statements given above is/are correct? (a) 1 only (b) 2 only• (c) Both 1 and 2 (d) Neither 1 nor 2 5. With reference to chemical fertilisers in India, consider the following statements: • 1. At present, the retail price of chemical fertilisers 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 fertiliser, is a by-product of oil refineries. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3 6.”
Why relevant

A textbook multiple‑choice item explicitly asserts: 'Sulphur ... is a by‑product of oil refineries' as the premise of a question about fertiliser inputs.

How to extend

A student could treat this as a commonly taught claim and check refinery product lists or industrial chemistry sources to verify if Indian refineries recover elemental/industrial sulphur.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > FERTILISER INDUSTRY > p. 50
Strength: 5/5
“For a fertiliser industry, the basic raw materials are neptha, rockphosphate, sulphur gypsum, and smelter gases. In case gas is not available, the plant may be operated with the help of coke and cokeoven-gas. In India, we have coal based fertiliser plants at Bhilai and Korba (Chhattisgarh), Durgapur (West Bengal), Ramgundam (Andhra Pradesh), Jamshedpur and Sindri (Jharkhand), and Rourkela and Talcher (Odisha). Neyveli is based on lignite while Hazira (Gujarat) and Thal (Maharashtra) use natural gas from the Bombay High. Most of the fertiliser plants are located close to the petroleum refineries. Plants near sea are based on imported material.”
Why relevant

States sulphur is a basic raw material for the fertiliser industry and notes most fertiliser plants are located close to petroleum refineries.

How to extend

A student could infer that proximity implies a local source (e.g., refinery by‑products) and then examine regional refinery outputs or transport patterns to see if sulphur is supplied from refineries.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Oil Refineries of India > p. 15
Strength: 4/5
“The oil refineries are the processing factories of crude-oil. The impurities from the crude oil are removed to obtain petroleum, diesel, kerosene, bitumen, and aviation fuel. Petroleum industry contributes over 15% of the GDP (2015–16). The main refineries of India, their year of commission and production capacity are given in (Fig. 8.5) (Table 8.6).”
Why relevant

Explains refineries remove impurities from crude oil to obtain finished products, implying extraction/processing of impurity streams.

How to extend

A student could connect 'impurities removed' with known impurities containing sulphur and then consult refinery processing steps (desulphurisation) to assess whether recovered sulphur is generated.

NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > Petroleum > p. 115
Strength: 4/5
“Petroleum or mineral oil is the next major energy source in India after coal. It provides fuel for heat and lighting, lubricants for machinery and raw materials for a number of manufacturing industries. Petroleum refineries act as a "nodal industry" for synthetic textile, fertiliser and numerous chemical industries. Most of the petroleum occurrences in India are associated with anticlines and fault traps in the rock formations of the tertiary age. In regions of folding, anticlines or domes, it occurs where oil is trapped in the crest of the upfold. The oil bearing layer is a porous limestone or sandstone through which oil may flow.”
Why relevant

Describes petroleum refineries as a 'nodal industry' for fertiliser and chemical industries, suggesting close material linkages between refineries and fertiliser feedstocks.

How to extend

A student might use this to hypothesize that refineries supply feedstocks (including sulphur or sulphur compounds) to nearby fertiliser plants and then look up supply chains or plant feedstock sources.

Pattern takeaway: UPSC has moved from asking 'Which policy?' to 'What is the supply chain?'. They test the physical reality behind the economic policy—inputs (Gas, Sulphur) are as important as the subsidy bill.
How you should have studied
  1. [THE VERDICT]: Standard-Applied Hybrid. Statement 1 is basic Economy (Vivek Singh/Singhania); S2 & S3 are Geography/Science common sense found in Majid Husain (Industries).
  2. [THE CONCEPTUAL TRIGGER]: Fertilizer Subsidy Regime & Industrial Location Factors.
  3. [THE HORIZONTAL EXPANSION]: 1. Urea: Controlled MRP, Gas-based (Haber Process). 2. DAP/MoP: NBS regime (Decontrolled), P & K based. 3. Potash: India is 100% import dependent (No reserves). 4. Rock Phosphate: Jhamarkotra mines (Rajasthan) vs Imports (Morocco/Jordan). 5. Sulphur: By-product of desulphurization in refineries (BS-VI norms increased sulphur recovery).
  4. [THE STRATEGIC METACOGNITION]: When studying a core sector (Steel, Fertilizer, Power), map the Input-Output Linkage. Don't stop at 'Govt gives subsidy'; ask 'What raw material is used?' (Coal/Gas/Sulphur) and 'Where does it come from?'.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Differential regulation: Urea vs. Non-urea fertilisers
💡 The insight

Urea retail price is government-administered while DAP, MoP and complex fertilizers are deregulated and market-driven.

High-yield because questions often probe which commodities remain price-controlled versus market liberalized; links to subsidy policy, procurement and distribution issues. Mastering this helps answer mixed-regime policy questions and compare sectoral regulation across agriculture inputs.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.4 Fertilizer Subsidies > p. 287
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Following are some of the benefits of "new urea policy 2015": > p. 289
🔗 Anchor: "As of 2020, are retail prices of chemical fertilizers in India market-driven (de..."
📌 Adjacent topic to master
S1
👉 Nutrient-Based Subsidy (NBS) and market pricing
💡 The insight

Nutrient-based subsidies allow producers/importers to sell DAP and MOP at market prices while receiving fixed government payments per nutrient.

Important for understanding how subsidies can coexist with market pricing and for evaluating reform proposals (e.g., DBT, NBS extension). This concept connects fiscal subsidy design with market outcomes and enables tackling questions on subsidy targeting and price signals.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > DAP (P) and MOP (K) and Complex Fertilizers (NPK) [Nutrient Based Subsidy] > p. 290
🔗 Anchor: "As of 2020, are retail prices of chemical fertilizers in India market-driven (de..."
📌 Adjacent topic to master
S1
👉 Government mechanisms for urea control (MRP, canalisation, directed movement)
💡 The insight

Urea is subject to a controlled MRP plus import and distribution controls, showing administrative intervention beyond simple subsidies.

Useful for questions on state intervention in input markets, leakage risks, and reform measures (e.g., removal of canalisation or DBT). Understanding these mechanisms helps in policy critique and solution framing in mains answers.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Following are some of the benefits of "new urea policy 2015": > p. 289
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 9: Agriculture > 2. Availability of Chemical Fertilisers > p. 47
🔗 Anchor: "As of 2020, are retail prices of chemical fertilizers in India market-driven (de..."
📌 Adjacent topic to master
S2
👉 Feedstock for urea plants (natural gas / naphtha)
💡 The insight

Urea manufacturing in India operates using natural gas or naphtha as the primary feedstock for production.

High-yield for questions on fertilizer manufacturing and energy linkages: knowing feedstock types explains vulnerability to gas price/availability shocks and links industry policy to energy policy. This concept connects to industrial inputs, import dependence, and production cost analyses.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > FERTILISERS > p. 303
🔗 Anchor: "In India, is ammonia used as an input for industrial urea fertilizer production?"
📌 Adjacent topic to master
S2
👉 Urea's dominance in India's fertiliser mix
💡 The insight

Urea is the most produced and the most consumed fertiliser in India, forming the bulk of nitrogenous fertiliser use.

Essential for modelling agricultural input policy and subsidy impacts: mastering this helps answer questions on nutrient balance, subsidy allocation, and environmental implications of over-reliance on a single fertiliser. It links to crop nutrition, public finance, and agrarian productivity topics.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > FERTILISERS > p. 303
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > FERTILISER INDUSTRY > p. 49
🔗 Anchor: "In India, is ammonia used as an input for industrial urea fertilizer production?"
📌 Adjacent topic to master
S2
👉 Government control and subsidy regime for urea
💡 The insight

The government sets urea pricing and provides production subsidies, and directs aspects of urea distribution.

Crucial for public policy and governance questions: understanding administered prices and subsidy mechanisms enables analysis of fiscal burden, market distortions, and reform proposals (e.g., direct transfers or deregulation). This ties into public finance, industrial policy and rural economy questions.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Following are some of the benefits of "new urea policy 2015": > p. 289
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.4 Fertilizer Subsidies > p. 287
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Subsidies > p. 288
🔗 Anchor: "In India, is ammonia used as an input for industrial urea fertilizer production?"
📌 Adjacent topic to master
S3
👉 Natural gas as primary feedstock for urea production
💡 The insight

Urea manufacture in India is primarily gas-based, with most urea plants using natural gas as feedstock for producing urea (and thus the ammonia intermediate).

High-yield for UPSC because it links agriculture (fertilisers) with energy policy and industrial processes. Mastery helps answer questions on fertiliser production, input dependencies, and related subsidy/policy issues; it also connects to topics on energy resources and manufacturing.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > FERTILISERS > p. 303
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Urea Subsidy > p. 288
🔗 Anchor: "In India, is ammonia for urea production manufactured from natural gas?"
🌑 The Hidden Trap

Potash (MoP) is the only major fertilizer for which India has ZERO commercially exploitable reserves and is 100% import-dependent. (Sibling to the Sulphur/Gas facts).

⚡ Elimination Cheat Code

The 'Sensitive Commodity' Heuristic. In India, essential goods (Food, Fuel, Fertilizer) rarely have *fully* market-driven pricing. Statement 1 claims *all* chemical fertilizers are market-driven. Since Urea is politically sensitive, this blanket deregulation is highly improbable. Eliminate 1.

🔗 Mains Connection

Energy-Food Nexus (Mains GS-3): High Global Gas prices -> High Ammonia cost -> High Fertilizer Subsidy Bill -> Fiscal Deficit. This links IR (Ukraine War/Gas prices) directly to Indian Economy (Fiscal Deficit).

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SIMILAR QUESTIONS

CDS-I · 2002 · Q49 Relevance score: 1.03

Consider the following statements with reference to India: 1. India is the largest consumer of sugar in the world 2. The issue price of sugar under PDS was raised to Rs. 13 per kg in the Union Budget 2000-2001 3. Uttar Pradesh contributes half of the country's sugar output Which of these statements is/are correct?

CDS-I · 2016 · Q45 Relevance score: 0.03

Which of the following statements regarding chemical industry in India is / are correct ? 1. Chemical industry is one of the oldest industries in India 2. Dyestuff sector is one of the important segments of chemical industry 3. Textile industry accounts for the largest consumption of dyestuffs Select the correct answer using the code given below :

IAS · 2019 · Q74 Relevance score: -0.15

Consider the following statements : 1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India. 2. One of the tasks of PNGRB is to ensure competitive markets for gas. 3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity. Which of the statements given above are correct?

IAS · 2004 · Q77 Relevance score: -0.28

Consider the following statements: 1. Regarding the procurement of food grains, Government of India follows a procurement target rather than an open-ended procurement policy. 2. Government of India announces minimum support prices only for cereals. 3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform Central issue prices to the States/ Union Territories. Which of the statements given above is/ are correct?