Why does the Government of India promote the use of ‘Neem-coated Urea’

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

Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms
Neem coating slows down the rate of dissolution of urea in the soil
Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields
It is a combination of a weedicide and a fertilizer for particular crops
This question was previously asked in
UPSC IAS – 2016
The primary reason the Government promotes Neem-coated Urea is that the coating slows down the release of nitrogen from the urea into the soil.
Neem coating acts as a nitrification inhibitor. It slows down the conversion of urea into ammonium nitrate and then into nitrates by soil bacteria. This process makes nitrogen available to plants over a longer period, reduces nitrogen loss through leaching and volatilization, and increases nitrogen use efficiency by crops.
– By slowing down nitrification, Neem-coated Urea also helps reduce the emission of nitrous oxide (N2O), a potent greenhouse gas produced during the nitrification and denitrification processes in soil. So, while it doesn’t *eliminate* N2O release entirely, it reduces it compared to uncoated urea.
– Increased nitrogen efficiency means farmers need less urea, saving costs and reducing environmental impact.
– Neem has certain pest repellent properties, which might offer minor benefits, but the main purpose of coating urea with neem oil is to control the rate of nitrogen release.