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Sufficient hydroxyl moiety, ease of accessibility, biodegradability and reaction compatibility with other molecules make starch a basic ingredient for polymeric synthesis and to prepare encapsulated controlled release fertilizers. This article aims to prepare biodegradable clay-polymeric (starch/PVA) blended encapsulating films (CPSBs) from starch/PVA and economically feasible clay-fractioned bentonite for CPSB-encapsulated diammonium phosphate (DAP) production. The XRD, TEM and FTIR spectroscopy recognized the compatibility of bentonite with starch/PVA blend; several micropores in CPSB surface was visible through SEM. Relative crystallinity index, density of CPSBs increased with increasing bentonite content (0–20 wt%); but, porosity, water absorption was decreased. Half-life of CPSB-10 was 37.4, 40.1 and 51.9 days with Aspergillus awamori, Trichoderma viride and uninoculated soil, respectively …