Chemical Fertilizers Pricing and Inputs

While Phosphatic and Potassic (P&K) fertilizers are under a Nutrient Based Subsidy (NBS) scheme where MRP is partially market-driven, Urea (the most consumed fertilizer) has its Maximum Retail Price (MRP) strictly fixed and administered by the central government. Hence, Statement 1 is incorrect. Ammonia is synthesized using the Haber process, requiring hydrogen, which is predominantly sourced via the steam reforming of Natural Gas (Statement 2 is correct). Sulphur is heavily recovered as a crucial by-product during the desulfurization of crude oil at petroleum refineries, and is subsequently used to produce sulphuric and phosphoric acids for fertilizers (Statement 3 is correct). > One-line conceptual takeaway: Urea remains strictly under government price control, and its domestic production is heavily dependent on natural gas imports. Answer: (b).