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Q24 (IAS/2016) Economy › Agriculture & Rural Economy › Fertilizers and soil nutrients Official Key

Why does the Government of India promote the use of 'Neem-coated Urea' in agriculture?

Result
Your answer: —  Âˇ  Correct: B
Explanation

The correct answer is option B. Neem coating causes nitrogen in the neem coated urea to be released to plants very slowly[1], which effectively slows down the rate of dissolution of urea in the soil. Neem-coated urea functions as a nitrification inhibitor[2], meaning it delays the conversion of urea to nitrate, thereby reducing nitrogen losses and improving efficiency. This results in requiring less quantity of fertilizer for the same plot size while giving higher[1] crop yields. The government made it mandatory for all indigenous urea producers to produce 100% of their subsidized urea as Neem Coated Urea in 2015[3], primarily to improve fertilizer efficiency and reduce nitrogen leaching.

Option A is incorrect as there is no documented mechanism where neem oil increases nitrogen fixation by soil microorganisms. Option C is incorrect because while neem-coated urea may reduce greenhouse gas emissions, it does not eliminate nitrous oxide release entirely. Option D is incorrect as neem-coated urea is not designed as a weedicide-fertilizer combination; it primarily helps in curbing diversion to non-agricultural sectors and improving crop yield[4].

Sources
  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Following are some of the benefits of "new urea policy 2015": > p. 288
  2. [2] https://nora.nerc.ac.uk/id/eprint/540298/1/N540298JA.pdf
  3. [3] https://www.pib.gov.in/newsite/printrelease.aspx?relid=159903
  4. [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Government Initiatives so far: > p. 304
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PROVENANCE & STUDY PATTERN
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Why does the Government of India promote the use of 'Neem-coated Urea' in agriculture? [A] Release of Neem oil in the soil increases nit…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 2.5/10 ¡ 7.5/10
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This is a classic 'Science of Policy' question. It was a headline topic in 2015-16 due to the mandatory neem-coating policy. The question tests if you understand the *mechanism* (slow release) justifying the policy, not just the policy name. It bridges General Science (chemistry of dissolution) with Indian Economy (subsidy management).

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Does neem-coated urea, as promoted by the Government of India, release neem oil into the soil that increases nitrogen fixation by soil microorganisms?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 2/5
"the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) conducted a study to determine the impact of Neem Coated Urea"
Why this source?
  • Government source describes the policy promotion/mandate for Neem Coated Urea but does not describe a mechanism of neem oil release or increased microbial N fixation.
  • The passage notes DAC&FW conducted a study to determine impact, implying evaluation exists but does not state that neem oil increases nitrogen fixation by soil microorganisms.
Web source
Presence: 3/5
"nitrifi­cation inhibitors (Neem-coated urea, NCU; Karanj-coated urea, KCU) in reducing GHG intensity and improving soil biological activity"
Why this source?
  • Research paper describes Neem-coated urea (NCU) as a 'nitrification inhibitor' and assesses effects on GHG and soil biological activity, not as releasing neem oil that increases nitrogen fixation.
  • The passage links NCU to changes in soil biological activity but does not state that neem oil is released into soil or that it increases nitrogen fixation by microbes.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > 2016 > p. 361
Strength: 3/5
“• 24. Why does the Government of India promote the use of 'neem-coated urea' in agriculture? • (a) Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms. • (b) Neem coating slows down the rate of dissolution of urea in the soil. • (c) Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields. • (d) It is a combination of a weedicide and a fertilizer for particular crops. 25”
Why relevant

This source lists as a plausible rationale (choice a) that neem oil release increases nitrogen fixation, showing the claim is circulated as an asserted benefit.

How to extend

A student could treat this as a hypothesis to check against experimental or soil-microbiology studies about neem compounds and N‑fixing microbes.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > Following are some of the benefits of "new urea policy 2015": > p. 288
Strength: 5/5
“Neem coated urea is required less in quantity with same plot size and gives higher crop yields. Underground water contamination due to leaching of urea also gets reduced with neem coating since nitrogen in the neem coated urea gets released to plants very slowly. Neem coated urea is not fit for industrial use, so chances of its illegal”
Why relevant

States a clear, supported function of neem-coated urea: it slows urea dissolution and reduces leaching, which affects nitrogen availability in soil.

How to extend

Combine this with knowledge that slower N release alters soil N dynamics and test whether that change (not neem oil itself) could indirectly affect N‑fixers.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Government Initiatives so far: > p. 304
Strength: 4/5
“This helps in curbing the diversion of urea to non-agricultural sectors and also to improve crop yield. • Around 2.5 lakhs tonnes of neem oil is produced which is sufficient to coat all \blacksquarethe urea produced and imported. • Extra premium to the extent of 5 per cent of the existing MRP of urea can be \blacksquarecharged by the companies selling Neem Coated Urea. New Urea Policy (NUP) launched in 2015 to promote indigenous production of urea.”
Why relevant

Notes that neem oil is produced specifically to coat urea, confirming that neem compounds are present on marketed fertilizer.

How to extend

Use this to justify investigating whether the amount and chemical form of neem on coated urea could reach concentrations in soil that affect microbes.

FUNDAMENTALS OF PHYSICAL GEOGRAPHY, Geography Class XI (NCERT 2025 ed.) > Chapter 5: Geomorphic Processes > Biological Activity > p. 45
Strength: 4/5
“Further, bacteria and other soil organisms take gaseous nitrogen from the air and convert it into a chemical form that can be used by plants. This process is known as nitrogen fixation. Rhizobium, a type of bacteria, lives in the root nodules of leguminous plants and fixes nitrogen beneficial to the host plant. The influence of large animals like ants, termites, earthworms, rodents etc., is mechanical, but, it is nevertheless important in soil formation as they rework the soil up and down. In case of earthworms, as they feed on soil, the texture and chemistry of the soil that comes out of their body changes.”
Why relevant

Gives the biological definition: soil bacteria (e.g., Rhizobium) perform nitrogen fixation, establishing which organisms would have to be affected for the claim to hold.

How to extend

A student could identify target organisms (Rhizobium and free‑living N‑fixers) and look for studies on neem oil's effects on these taxa.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 11: Agriculture - Part II > Features of Zero Budget Natural Farming (ZBNF): > p. 349
Strength: 3/5
“• The premise of ZBNF is that soil has all the nutrients plants need. To make these nutrients available to plants, we need the intermediation of microorganisms. For this, "four wheels of ZBNF" have been suggested: • Bijamrit is the microbial coating of seeds with formulations of cow urine and cow dung• Jivamrit is the enhancement of soil microbes using an inoculum of cow dung, cow urine, and jaggery• Mulching is the covering of soil with crops or crop residues which creates humus and encourages the growth of friendly microorganisms• Waaphasa is the building up of soil humus to increase soil aeration• According to ZBNF principles, plants get 98% of their supply of nutrients from the air, water, and sunlight.”
Why relevant

Highlights that agricultural practices and additions (e.g., inocula, mulches) can enhance soil microbial activity, implying that inputs can influence microbes' nutrient-cycling roles.

How to extend

Use this pattern to consider that neem-coated urea, as an agronomic input, might influence microbial communities either directly (chemical effect) or indirectly (altered N dynamics).

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Statement analysis

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Statement analysis

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