A benchmark study on economic impact of Neem Coated Urea on Indian agriculture

Abstract

AbstractThe policy of mandatory production and distribution of Neem Coated Urea (NCU) was implemented by the Government of India since 2015. In this article, authors have made an attempt to explore the benefits of NCU recognized by the producers of six major crops such as paddy, maize, sugarcane, tur, jute and soybean across six major states viz., Karnataka, Maharashtra, Madhya Pradesh, Bihar, Punjab and Assam. The results reveal that NCU use has contributed positively in terms of increasing the yield levels of main product and by-products, as well as net returns with regard to almost all reference crops however; the extent varies from crop to crop. Moreover, NCU has helped reduce the cost of production by minimizing the cost of urea as well as other fertilizers and pesticides usage. Interestingly, the diversion of urea has stopped completely, post the production and distribution of NCU. Hence, it is concluded that the application of NCU has a positive impact on Indian agriculture, by way of increasing yield levels & returns for the farming community. These results are in line with the PM's vision of doubling farmers’ income by 2022 and Sustainable Development Goals of the Country.