A benchmark study on economic impact of Neem Coated Urea on Indian agriculture

Abstract

The policy of mandatory production and distribution of Neem Coated Urea (NCU) was implemented by the Government of India since 2015. In this article, authors have made an attempt to explore the benefits of NCU recognized by the producers of six major crops such as paddy, maize, sugarcane, tur, jute and soybean across six major states viz., Karnataka, Maharashtra, Madhya Pradesh, Bihar, Punjab and Assam. The results reveal that NCU use has contributed positively in terms of increasing the yield levels of main product and by-products, as well as net returns with regard to almost all reference crops however; the extent varies from crop to crop. Moreover, NCU has helped reduce the cost of production by minimizing the cost of urea as well as other fertilizers and pesticides usage. Interestingly, the diversion of urea has stopped completely, post the production and distribution of NCU. Hence, it is concluded that the application of NCU has a positive impact on Indian agriculture, by way of increasing yield levels & returns for the farming community. These results are in line with the PM's vision of doubling farmers’ income by 2022 and Sustainable Development Goals of the Country.

Agriculture Input Policies in India: Retrospect and Prospects

“…The share of (N+P+K) consumption declined from 57 per cent in the 1960s to 43 per cent in the 1970s, further to about 24.8 per cent in the 1980s, 21.3 percent in the 1990s before increasing to 26.2 per cent in 2000s. Almost a similar trend was observed in the case of nitrogenous and phosphatic fertilizers [20,21].…”

“…In this connection, the researchers came up with the development of Neem-Coated Urea (NCU), which helps increase Nitrogen Use Efficiency (NUE) in crops. Recognizing the potential benefits associated with NCU relative to NU, the Ministry of Agriculture and Farmers Welfare (MoA & FW), Government of India, included NCU in the Fertilizer Control Order (FCO) since July 2004 and subsequently made the production and distribution of NCU mandatory from 25 th May 2015 [20,19].…”

Complex linkages between agriculture and air pollution pose a major threat to food security in India

“…For example, the Indian Neem-coated urea initiative (Pathak 2023), could impact NH 3 emissions. However, current research observed no emissions reduction but improved crop yields (Ramappa et al 2022), underscoring the importance of assessing its positive and negative long-term effects on agriculture and the environment (Bhatia et al 2023). Without a region-based understanding of agricultural practices as they impact and are impacted by air pollution, our ability to make sound policies under a changing climate and growing food demand will be limited.…”

Environment-friendly nitrogen management practices in wetland paddy cultivation

“…They further showed that CRNF decreased the cumulative NH 3 volatilization for early-and late-season rice by 20-43% and 20-32%, respectively, as compared with the conventional urea (Table 4). Neem-coated urea (NCU) is very popular in India and is garnering continuous attention from scientific communities across the world (Ramappa et al, 2022). Sireesha et al (2020) reported that 100% of NCU increased NUE (32.59 %) when compared with 100% of prilled urea (20.68 %).…”