Gujarat produces 14% of Neem-Coated Urea in India

Gandhinagar : Gujarat has prioritized the production and use of neem-coated urea. Today, the state contributes 14% to the production of neem-coated urea.

To protect urea from being diverted for industrial and non-agricultural purposes and to ensure its ample availability for farmers, Prime Minister Narendra Modi took a landmark step of mandating that all urea be neem-coated on August 15, 2015. Before this decisive action, farmers faced considerable challenges in obtaining the crucial fertilizer due to its diversion for industrial use and rampant black marketing. 

Neem Urea Enhances Soil Health

Excessive use of chemical fertilizers creates a nitrogen layer in the soil, impeding crop nutrient absorption. Neem-coated urea, however, prevents the formation of nitrogen layer, thus supporting healthier soil. It also eliminates soil pests and improves soil fertility. This results in reduced agricultural costs for farmers and increased crop yields. Neem-coated urea is created by applying a layer of neem oil to plain urea.

Gujarat Accounts for 14% of National Production

Gujarat stands as the premier state in the production of neem-coated urea, contributing 14% to the nation’s total output and meeting 9% of India’s consumption needs. Gujarat Narmada Valley Fertilisers and Chemicals Limited (GNFC) manufactures the fertilizer at its Bharuch plant. Additionally, GSFC, IFFCO, and KRIBHCO also produce neem-coated urea.

In Gujarat, neem-coated urea production surged to 38,92,000 metric tonnes in 2022-23 and 39,73,000 metric tonnes in 2023-24, up from 37,76,000 metric tonnes in 2021-22. The rising demand and consequent increase in production reflects the growing acceptance of neem-coated urea due to its multiple benefits.

Women Earning Up to ₹60,000 Annually

Once discarded as waste, neem seeds have now become a source of prosperity for thousands of women. GNFC has established a comprehensive infrastructure for collecting neem seeds, or Nimboli, crucial for urea’s neem coating. Through Sakhi Mandals and cooperative societies, rural women and marginalised workers gather these seeds, supported by 4,000 Village Level Collection Centers (VLCCs) throughout the state. In the early days of the project, Gujarat’s annual collection of Nimboli was 15,000 metric tons. Today, it has soared to around 50,000 metric tons. During the three-month peak season each year, women earn ₹60,000, substantially boosting their income and promoting self-reliance. The initiative has transformed the lives of socially and economically underprivileged women, increasing their income and addressing challenges such as migration and distress sale and mortgage of their hard-earned property.

Increase in Revenue, Expansion into New Markets

Fulfilling the Prime Minister’s vision, GNFC has entered into a remarkable phase of success. Neem-coated urea brought in an additional revenue of ₹20.68 crore in its first year. Over the past three years, the company has achieved an average annual revenue growth of ₹19.40 crore. 

Capitalising on the plentiful supply of Nimboli oil, GNFC has diversified its product line and included neem soap, neem hand wash, neem hair oil, and neem insecticide. Today, neem-infused cosmetics and personal care products, known for their medicinal benefits, have gained considerable popularity among urban consumers.