New Urea Policy 2015

Based on CCEA decision, Department of Fertilizers has notified New Urea Policy – 2015 (NUP-2015) on in May 2015, with the objectives: To maximize indigenous urea production; to promote energy efficiency in the urea units; and to rationalize the subsidy burden on the Government of India.

Neem Coating of Urea: As per notification, it has been made mandatory for all the indigenous producers of urea to produce 100% of their total production of subsidized urea as Neem Coated urea.

• Since NCU cannot be used for industrial purposes, illegal diversion of subsidized urea to non-agricultural use would not be possible.
• By curbing this illegal diversion of Urea for non-agricultural purposes, the government aims to prevent subsidy leakages.

Significance of Neem Coated Urea: Neem coated urea is required less in quantity with the same plot size and gives higher crop yields.

• Underground water contamination due to leaching of urea also gets reduced with neem coating since nitrogen in the neem coated urea gets released to plants very slowly.
• Neem coated urea is not fit for industrial use, so chances of its illegal diversion to industries will also be lesser.