Neem coating of urea has not only prevented its misuse by the chemical industry, such fortification of urea has ensured that lesser quantity is required to vitalise crops, the Lok Sabha was informed today.
Minister of State for Chemicals and Fertilizers Mansukh Mandaviya said during Question Hour that neem coating has ensured that the urea meant for farmers is not diverted to the chemical industry.
Urea is a raw material for the manufacture of two main classes of materials -- urea-formaldehyde resins and urea-melamine-formaldehyde used in marine plywood.
Mandaviya's senior Ananth Kumar said neem coating has fortified urea, due to which nitrogen is released slowly. As a result, lesser amount of urea is required to vitalise crops.
More than 90 per cent of world industrial production of urea is destined for use as a nitrogen-release fertilizer.
In his written reply, Kumar said before the start of the season, about 21.36 lakh MT of urea was pre-positioned in the states.
He also said while per tonne urea is sold at little over Rs 5000, its actual cost is nearly Rs 20,000 per tonne.
"In effect, government gives a subsidy of Rs 15,000 per tonne," he said.
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