Why does the Government of India promote the use of ‘Neem-coated Urea’ in agriculture? [UPSC Prelims 2016]

Why does the Government of India promote the use of ‘Neem-coated Urea’ in agriculture?
  1. Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms.
  2. Neem coating slows down the rate of distribution of urea in the soil
  3. Nitrous oxide, which is a greenhouse gas, is not at all released into the atmosphere by crop fields.
  4. It is a combination of a weedicide and a fertilizer for particular crops.
Ans. D
Explanation:
Spraying urea with neem oil slows the release of nitrogen, by about 10 to 15 per cent, concomitantly reducing consumption of the fertiliser. According to recent research, the “sustained release” nature of neem-coated urea has seen rice yields jump 9.6 per cent and wheat by 6.9 per cent.
Why the question Came:
Directly from Economic Survey opening para in chapter on Fertilizers! Recently government has promised to double the farmers income and the access to subsidised fertilisers has been one of the biggest problems , last year the government has also announced the new urea policy. Please note that Prime Minister Narendra Modi included a mention of this policy in his Independence Day address.
Sources:
The Economic Survey 2016-17, The Hindu
http://articles.economictimes.indiatimes.com/2015-01-09/news/57884022_1_neem-coated-urea-agriculture-minister-radha-mohan-balanced-use
http://www.thehindubusinessline.com/economy/agri-business/neemcoated-urea-mandatory-for-75-of-domestic-production/article7049075.ecehttp://www.business-standard.com/article/economy-policy/neem-coated-truth-urea-policy-isn-t-a-game-changer-116021601168_1.html
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