The Indian Biogas Association (IBA) has welcomed the government’s latest amendment to promote the use of organic fertilizers, estimating that the initiative could generate $2.6 billion in revenue for the biogas sector. The move is expected to enhance soil health, reduce environmental impact, and boost agricultural productivity, according to an IBA statement issued on Sunday.
Key Policy Change to Support Organic Fertilizers
The Ministry of Agriculture and Farmers Welfare has amended the 1985 Fertiliser (Control) Order to include ‘Organic Carbon Enhancers’ derived from Compressed Biogas (CBG) plants as an approved category of fertilizer.
Announced in February 2025, this policy shift is expected to benefit farmers, improve soil fertility, and support India’s sustainability goals by promoting eco-friendly farming practices.
Impact on Agriculture and the Biogas Industry
According to IBA President A R Shukla, the amendment marks a major step in improving soil health while also mitigating global warming. Fermented organic manure (FOM)—a byproduct of biogas plants—will play a crucial role in this initiative by enriching the soil with organic carbon.
The key benefits of organic fertilizers from CBG plants include:
- Enhancing soil organic carbon. India’s SOC levels have declined from 1 percent to 0.3 percent in the last 70 years, impacting soil productivity.
- Boosting plant growth and sustainability. Organic carbon enhancers improve nutrient absorption and soil fertility.
- Generating additional revenue for the biogas industry. Expanding CBG plants could significantly increase organic manure production, leading to higher profitability.
Expanding Biogas Capacity to Meet Fertilizer Demand
Currently, India produces 1 million metric tonnes of fermented organic manure (FOM) annually from biogas plants. However, with the expansion of biogas infrastructure, this figure could reach 7 million metric tonnes, potentially meeting the fertilizer needs of entire regions like Rajasthan.
The government’s push for organic fertilizers will also drive increased demand for CBG plants, aligning with the nation’s waste-to-wealth initiatives and accelerating economic growth in the renewable energy and agricultural sectors.
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Revenue Potential from Organic Fertilizer Market
The IBA has been advocating for a scheme similar to SATAT (Sustainable Alternative Towards Affordable Transportation) to be applied to fermented organic manure. The association estimates that once SATAT potential is fully realized, the industry could see:
- A minimum revenue addition of $2.6 billion from solid-FOM.
- Two to three times higher revenue if liquid-FOM realization is included.
A Sustainable Future for Agriculture and Renewable Energy
With the government’s policy support and the expansion of biogas projects, India is poised to become a leader in sustainable agriculture and circular economy practices. The latest initiative not only benefits farmers and the environment but also strengthens the biogas industry, positioning it as a key player in India’s green energy transition.