Neem Coated Urea

The question asked the Ministry of Chemicals and Fertilizers to state whether Neem Coated Urea (NCU) is mandatory, its benefits, its impact on illegal diversion, production data for the last three years, and measures for timely supply.

Asked by Dr. Sanjay Jaiswal and Smt. Anita Nagarsingh Chouhan; Answered by the Ministry of Chemicals & Fertilizers (Minister of State Smt. Anupriya Patel).

• 100% Neem Coated Urea (NCU) supply is mandatory for domestic producers and importers since 2015.
• Research indicates an average yield enhancement of 8.25% and a reduction in nitrogen losses by 10%-15% due to NCU.
• Since April 2026, 1,69,031 raids were conducted, 9,127 show cause notices issued, 2,868 licenses suspended/cancelled, and 270 FIRs registered against defaulters.
• Specific enforcement actions for diversion include 414 show cause notices, 113 licenses suspended/cancelled, and 46 FIRs registered.
• Total NCU production was 314.1 LMT in 2023-24, 306.4 LMT in 2024-25, and 293.2 LMT in 2025-26.
• Urea availability has remained adequate across States/UTs during FYs 2023-24 to 2025-26, with availability figures exceeding requirement and sales in the provided annexure.

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