Government's Initiative to Promote Organic Fertilizer Could Boost Biogas Industry by USD 2.6 Billion: Indian Biogas Association

New Delhi, March 2 — A recent government initiative to encourage the use of organic fertilizers is poised to generate an additional revenue of USD 2.6 billion for India's biogas industry, according to the Indian Biogas Association (IBA).

In a statement released on Sunday, the IBA highlighted that the Ministry of Agriculture and Farmers Welfare had amended the 1985 Fertilizer (Inorganic, Organic, or Mixed) (Control) Order to include ‘Organic Carbon Enhancers’ from Compressed Biogas (CBG) plants as a new category of fertilizer. This change, introduced in February 2025, aims to promote ecologically friendly farming practices by enhancing soil health while supporting sustainable agriculture.

A. R. Shukla, President of the Indian Biogas Association, praised the amendment, calling it a significant step toward improving soil health and combating global warming. He emphasized that the use of organic fertilizers produced through the fermentation process at biogas plants would not only boost the industry but also address critical environmental concerns.

The new organic fertilizers, enriched with organic carbon, have the potential to increase soil fertility, promote plant growth, and sustain long-term agricultural productivity. The IBA pointed out that the Soil Organic Carbon (SOC) content in India has dropped dramatically over the past 70 years, from 1% to just 0.3%, highlighting the urgency for such measures.

India currently produces approximately 1 million metric tonnes of fermented organic manure (FOM), a byproduct of CBG plants. With the expansion of biogas projects, this production could rise to 7 million metric tonnes, potentially meeting the fertilizer needs of regions like Rajasthan. This growth is expected to stimulate demand for organic fertilizers and lead to the establishment of more CBG plants, thus benefiting the biogas sector and contributing to waste-to-wealth initiatives.

The IBA has also advocated for a scheme similar to SATAT (Sustainable Alternative Towards Affordable Transportation) to be applied to fermented organic manure. According to the association's estimates, the biogas industry could generate a minimum of USD 2.6 billion in revenue from solid FOM, once the full potential of SATAT is realized. If the impact of liquid FOM is also considered, the revenue could increase by two to three times, further enhancing the economic prospects for industry stakeholders.

With this initiative, the government is paving the way for a more sustainable and profitable future for both farmers and the biogas sector, fostering a cycle of growth that benefits the environment, agriculture, and the economy.
 
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