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A neem based composition for coating nitrogenous fertilizer. The composition comprises 2-10 percent by weight neem extract, 10-60 percent by weight neem oil, 10-25 percent by weight binder and 25-50 percent by weight organic solvent. Also a method of making the composition by mixing the ingredients, a method of coating a nitrogenous fertilizer by mixing it with 0.5 to 1.0 percent by weight of the neem based composition and nitrogenous fertilizer coated with 0.5 to 1.0 percent by weight of the neem based composition.