Q. Consider the following statements:
1.Urea prices are fixed by the companies in the open market.
2.For phosphatic & potassic (P&K) fertilizers, the Department of Fertilizers provides an indicative Maximum Retail Price at which they are to be sold.
Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation –
Statement 1 is incorrect. Urea is the only fertilizer with statutorily controlled price & movement. Urea prices in India are controlled by the government through a policy called the New Pricing Scheme. The government sets a maximum retail price for urea and also provides subsidies to farmers to make it more affordable.
Statement 2 is correct. The Department of Fertilizers provide an indicative Maximum Retail Price for phosphatic & potassic (P&K) fertilizers. These prices serve as a guideline for retailers and distributors, but they are not mandatory.
Source: ForumIAS
