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Govt makes 'neem coating' of 75% domestic urea mandatory

31 Mar 2015 Evaluate

In a move which would fetch dual benefit, government has made it mandatory for domestic fertilizer firms to ‘Neem Coat’ at least 75% of their urea production. This move is not only aimed at checking the excessive use of urea which is deteriorating the soil health and adversely impacting overall crop yield, but is also aimed at saving Rs 6,500 crore subsidy outgo. With this, all it is mandatory for all the indigenous producers of urea to produce 75% of their total production of subsidised urea as “Neem Coated Urea”.

Notably, higher usage of neem-coated urea would check diversion of urea for industrial use. Presently, urea is excessively used as it is highly subsidized given that retail price of urea is fixed at Rs 5,360 per tonne. Therefore, farmers use it even in place of other partially decontrolled NPK fertilizers, leading to deterioration in soil health. According to officials in both Agriculture and Fertiliser Ministries, the soil health is deteriorating because of excessive use of urea and it has disturbed the ideal N (nitrogen) P (phosphorus) and K (potash) ratio of 4:2:1.

However, quashing the fears of exorbitant hike, Fertiliser Secretary J K Mohapatra underscored that neem coated urea, which also works as insecticide will cost just 5% more than the cost of normal urea which is about Rs 260 per tonne and about Rs 10 per bag. This is welcome move for the industry, which has been demanding for removing the cap on production of neem coated urea for last many years and added it will help maintaining the ideal nutrient ration in soil.

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