Q. Consider the following statements regarding fertilizer consumption in India:
1.The MRPs of urea fertilizers are decontrolled or fixed by the companies. 2.India follows a Nutrient Based Subsidy regime for Non-urea fertilizers.
Which of the statements given above is/are correct?
Answer: B
Notes:
India’s fertiliser consumption consists of approx. 55% urea.
Since non-urea varieties cost higher, many farmers prefer to use more urea than actually needed.
Subsidy on Urea: The Centre pays subsidy on urea to fertilizer manufacturers on the basis of cost of production at each plant and the units are required to sell the fertiliser at the government-set Maximum Retail Price (MRP).
Subsidy on Non-Urea Fertilisers: The MRPs of non-urea fertilisers are decontrolled or fixed by the companies.
However, under the NBS regime the government decides the rates for nutrients like Nitrogen (N), Phosphorous (P), Potassium (K), Sulphur (S) etc. which then are used for calculating a flat per ton rate.
