The Cabinet Committee on Economic Affairs approved the proposal of Department of Fertilizers to continue Urea Subsidy Scheme up to 2019-20.
- Urea Subsidy is a part of Central Sector Scheme of Department of Fertilizers with effective from 1st April, 2017.
- It is wholly financed by the Government of India through Budgetary Support.
- The continuation of Urea Subsidy Scheme will ensure the timely payment of subsidy to the urea manufacturers resulting in timely availability of urea to farmers.
- Urea subsidy also includes Imported Urea subsidy which is directed towards import to bridge the gap between assessed demand and indigenous production of urea in the country.
- It also includes freight subsidy for movement of urea across the country.
Neem Coated Urea
- Only about 30 to 40% of N2 in the urea is utilized by the plants.
- Coating of neem oil helps in gradual release of nitrates into soil.
- From 2015, the Centre made it mandatory on the part all indigenous producers of urea to produce 100% of their total production of subsidised urea with neem coating.