Urea demand has declined after the government made it mandatory to neem coat the entire urea produced and imported in the country, Parliament was informed today.
Replying to a question in Rajya Sabha, Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said, "...The urea demand from states has fallen by 7 lakh tonnes after the neem coating of urea was started."
In a bid to check excessive use and diversion of urea, the government last year allowed fertiliser firms to produce 100 per cent neem-coated urea.
The neem coated urea also acts as an insecticide and the farmers require less urea. It costs 5 per cent more than the normal urea.
According to the data shared by the Ministry, the overall 290.47 lakh tonnes of urea was sold till February, while in the entire last fiscal the sales stood at 308.72 lakh tonnes.
The country has imported 83.07 lakh tonne urea and produced 224.67 lakh tonnes of urea till February, Ahir added.
He also informed that the government is working on reviving four closed fertiliser plants.
