Gujarat State Fertilisers Company Limited (GSFC) has secured the approval of central government for increasing production of neem-coated urea to 100 per cent from the current 35 per cent, a top official said today.

“As per the notification issued by Government of India (GoI) in 2008, a company can produce and sell neem-coated urea equivalent to the maximum of 35 per cent of its total installed capacity,” said GSFC Chairman and Managing Director Sudeep Kumar Nanda, adding that he has raised the matter with government requesting it to remove the 35 per cent cap.

Nanda said the Centre’s move to increase production of neem-coated urea will stop diversion of urea fertiliser and prevent its misuse by industrial units that need Nitrogen and Ammonia for their manufacturing requirements.

“GSFC, in collaboration with agricultural universities in Gujarat, has been regularly conducting front-line demonstrations at farmers’ fields and results show that farm yields have increased depending upon crop and location,” he said.

Nanda said by increasing the utility factor of Nitrogen (through neem-coated urea), the consumption of urea can be reduced.

Urea imports have increased by 13 per cent to 78.43 lakh tonnes (LT) in April-February period of 2014-15, while it stood at 69.27 LT in the corresponding period of 2013-14.

Imports in the entire previous fiscal were 70.88 LT, according to official data.

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