| Consider the following statements: |
| 1. India produces 85% of its urea requirement but there is heavy dependence on imports for phosphatic and potassic fertilizers |
| 2. Farmers pay less than 50% of the cost of fertilizer production. Which of these statements is/are correct? |
A) Only 1
B) Only 2
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: C
Solution :
[c] The country's urea production is stagnant at around 220 lakh tonnes from last few years, whereas the demand is about 300 lakh tonnes. The difference is met through imports. Urea is sold to farmers at a fixed, subsidised maximum retail price of Rs. 5, 360 per tonne. The difference between the cost of production and the price is provided as subsidy. Stepping ahead to make India self-sufficient on food productions, the government increased fertiliser subsidy bill to Rs. 72, 968.56 crore for the financial year 2015-16 as against Rs. 70,967.31 crore last year on rising fertiliser import.
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