Neem-Coated Urea will stop diversion of subsidized Urea to industries:Hansraj Ahir


Speaking to media person briefly in Gandhinagar, union Chemicals and Fertilizers minister Hansraj Ahir said that to prevent diversion of urea to chemical industries, the central government will increase production of neem-coated urea and supply it to states that are having presence of chemical industries.

Ahir said the government will supply 75% neem coated urea to states that are having presence of chemical industries while rest 25% which is conventional urea will be supplied to other states that are not having presence of chemical industries.

He said next year the government will supply 100% neem-coated urea. He said government is also trying various options to prevent black marketing of urea.

Ahir was in Gandhinagar with another union minister Venkaiah Naidu to hold meeting with the state government regarding the impacts of recent hail storm and unseasonal rain on farmers.


It should be mentioned that on number of occasions it has been found that subsidized urea supplied by central government for farmers actually diverts to chemical industries that are into making of color and detergent. In recent months, two such cases have come to light in north and central Gujarat.

Centre’s move to increase production of neem-coated urea will stop diversion of urea fertilizer and prevent its misuse by industrial units that need Nitrogen and Ammonia for their manufacturing requirements.

By increasing the utility factor of Nitrogen (through neem-coated urea), the consumption of urea can be reduced.

Urea imports have increased by 13 per cent to 78.43 lakh tonnes (LT) in April-February period of 2014-15, while it stood at 69.27 LT in the corresponding period of 2013-14.

Imports in the entire previous fiscal were 70.88 LT, according to official data.

As per the notification issued by Government of India (GOI) in 2008, a company could produce and sell neem-coated urea equivalent to the maximum of 35 per cent of its total installed capacity. Recently, Gujarat State Fertilizers Company Limited(GSFC) Chairman and Managing Director Sudeep Kumar Nanda had requested centre to remove this 35% cap. Accordingly the central government had approved GSFC for 100% neem coated urea production.