Urea is an important supplier of nitrogen, which is necessary for the development of plants. But only 30-40 per cent of nitrogen present in the urea is utilised by crops. Neem has properties that check nitrogen loss at each stage. It slows down the process of nitrate formation and hence excess nitrate is not available for denitrification. When farmers use this urea, the slow release of nitrogen helps the fertility of the soil. Therefore, there will be more yield to the extent of 15-20%. Also, the higher usage of neem-coated urea would check diversion of urea for industrial use. Neem coated urea also works as insecticide.