Organic fertilizer use to add $2.6 bn in revenue, says IBA
New Delhi: The government’s initiative to promote the use of organic fertilizer could add a revenue of $2.6 billion for the biogas industry, the Indian Biogas Association (IBA) said on Sunday.
The government has announced an amendment to encourage the use of organic fertilizer for farming methods that are more ecologically friendly, the IBA said in a statement. The Ministry of Agriculture and Farmers Welfare has made some changes in to the 1985 Fertilizer (Inorganic, Organic, or Mixed) (Control) Order and included ‘Organic Carbon Enhancers’ from Compressed Biogas (CBG) plants as a new variety of fertilizer.
The change introduced in February 2025 is believed to be beneficial for farmers and the environment as it will help improve agriculture in the country, it stated. A R Shukla, President of the IBA, has hailed the amendment, saying, it will help improve soil’s health as well as mitigate global warming.
Organic fertilizer which is produced through the fermentation process in the biogas plant will allow the industry to earn additional income, IBA said. Organic carbon enhancers enrich soil with organic carbon, which increases plant growth, and sustains agricultural productivity, the IBA said, pointing out that Soil Organic Carbon (SOC) content in India has decreased to 0.3 per cent from 1 per cent in the last 70 years.
Additionally, it said, there will be significant profit margins and income generating from this development for the industry. India currently produces around 1 million metric tonnes of fermented organic manure (FOM), a byproduct from CBG plants. This figure could soar to 7 million metric tonnes with the expansion of biogas projects and would be sufficient to cover the fertilizer needs for whole parts of regions like Rajasthan, it stated.
The government support will increase the organic fertilizer demand and ultimately the number of CBG plants, which will benefit the biogas industry and waste-to-wealth initiatives. This, in turn, will enhance economic growth.
The IBA said it has been advocating for a scheme on the pattern of SATAT (Sustainable Alternative Towards Affordable Transportation) to be applied to fermented organic manure.
IBA estimates a minimum of $2.6 billion in revenue addition for the industry players from solid-FOM upon full realization of SATAT potential, it stated. This figure would further increase by 2-3 times in case realization from liquid FOM is considered, it added.
