Question

All the indigenous producers of urea are mandated to produce 100% of their total production of subsidized urea as Neem Coated urea. This is to

• A. to make agriculture more sustainable
• B. reduce the cost of production
• C. curbing illegal diversion of Urea to non-agricultural purposes
• D. to reduce the dependency on import of fertilizer nutrients

Answer 1

The correct option is C

curbing illegal diversion of Urea to non-agricultural purposes

Neem Coating of Urea: Department of Fertilizers recently notified that 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.