According to some estimates, there are about 20 million neem trees in India. This inter-state estimate is slightly less than current estimate of 20 million. A neem tree normally starts fruiting after 3-5 years. In about 10 years it becomes fully productive. Under favourable conditions fresh fruit yield per fully grown tree is about 50 kg per year. If 50% are accessible and tapped, the total neem seed production may well reach the level of 5 million quintals. Present level of collection is far below 50% which shows the potential for additional employment and income generation. If commercial plantation and agro-forestry involving neem in popularized, the potential goes up significantly, with positive and large externalities for pesticides, fertilizers, livestock, dairying and other value-added products.

Under the optimistic assumption of an azadirachtin content of 5 g per kg of dried kernels there is already in existence reservoir of about 150 tons of azadirachtin per year in India which can be tapped for commercial exploitation. If azadirachtin is to be produced in bulk quantities, 100 kg at least, the fruits must be dried and processed under carefully controlled conditions in order to avoid fungal infection which may cause aflatoxin pollution. With agro-forestry and commercial scale neem plantation, the potential would grow.

Neem cake seems to be the most economic starting material for production of crude azadirachtin. “One can assume that a standardized crude azadirachtin should be available at around US$ 2 per gram. Only then it can compete with new synthetic insecticides”.

There is a potential of about 5,40,000 tons of seed, which can yield about 1,07,000 tons of oil and 4,25,000 tons of cake. However, in spite of good demand, only about 25 to 30 percent of the neem seed is collected in India, indicating a large untapped potential. Incentives for neem seed collection-in keeping with the current economic realities-must be strengthened along with organizational improvements for marketing of neem seeds. Organizational, financial inputs and a policy for integrating neem in the framework of agriculture, rural and small industries policies is needed in order to realize this potential, as we discuss later.

Neem production is presently neither attractive nor remunerative. There are several reasons for the lack of interest among farmers. The important reasons are poor yield, deterioration of seeds, lack of information and inadequate marketing facilities which weaken the returns from this activity. Because of poor quality of seeds and their weak bargaining position, the seed collectors get a very low price for their seeds. The price realized by the seed collectors is in the range of Rs. 500 to Rs. 2500 per ton seed, giving total value in the neighborhood of Rs. 100 crore.

As a part-time supplementary income, even if a poor villager in able to tap 100 neem trees in a year, an additional income flow of Rs. 10,000 per year can be earned with the modest target of reaching 50% of the tree population. This kind of additional income just by seed collection can be given to one lakh persons. Once can see immense possibilities if neem as a part of agro-forestry is popularized as a part of IRDP and value-added products through village industries.

Good quality seed would fetch upto Rs. 4000 per ton which doubles our estimated of neem potential.

The recovery of oil from poor quality seeds is not good. That is why the price paid for such seeds is low. Collection and drying of seeds are the main problems at the village level. The common practice is to broom the ground under the tree. In the process, dirt gets mixed with the seed. This can be avoided by affecting simple changes in collection process such as spreading gunny mats or those made of local materials or plastic sheets under the tree. These Changes cost very little but can help greatly in the collection of clean seeds and improve oil yield.

The seed needs to be de-pulped immediately after collection, sun dried and stored till crushed for oil extraction. Any delay in de-pulping the seed and drying affects the quality both with respect to oil and azadirachtin content. Properly dried seeds can be stored upto one year, although it has been recommended to store for a minimum of three months after collection for maximum oil recovery.

Non Government Organizations can play crucial role in formation of seed collector’s co-operatives for collection and marketing of neem seeds. This would enable seed collectors to realize better price.

Adequate supply of good quality neem seeds in a timely fashion is critical for the commercial success of azadirachtin. In India, facilities already exist for extraction of oil from neem seeds. It is possible to use thee prexisting facilities for obtaining azadirachtin-rich extracts. However, unlike in the case of oil extraction, to get good quality azadirachtin extracts, the extraction procedures have to be of high standards. Proper care has to be taken in handling seeds at various stages including procurement, drying and storage. If not handled carefully the azadirachtin content in seeds degrades which affects the quality of the azadirachtin formulations.

One important reason for lack of interest among farmer is that they generally do not consider neem products as a dependable source for plant protection. This is largely due to lack of information. “………….. the efforts made so far on the transfer of neem technology are not commensurate with the voluminous data collected on use of neem leaves, seed, kernel, oil, cake, enriched and aqueous formulations of seed kernel and cake, and ready to use neem formulations as insecticides, antifeedants, repellants, growth disruptors, ovipositional repellants and chemosterilants for control of several insect pests on crops and also as nematicides and nitrogen regulators. There is an urgent need to strengthen and gear up to extension wings of State Agriculture Departments and Universities, Krishi Vigyan Kendras, and Research Institutes of ICAR in collaboration with the manufacturers of neem products to disseminate information on neem to farmers.

The best way to popularize the use of neem products is through neem demonstration centres and bridging the gap between labs and farmers. There are many neem products including pesticides which do not require sophisticated technology to produce. This will greatly reduce farmer’s dependence on toxic chemical products.