The Indian Biogas Association (IBA) announced that the government’s push for organic fertilizers could generate an additional $2.6 billion in revenue for the biogas industry. This initiative aims to enhance sustainability and improve soil health across the country.
Amendment to Fertilizer Regulations
The ministry of agriculture and farmers welfare recently amended the 1985 Fertiliser (inorganic, organic, or mixed) (control) Order. The update, introduced in February 2025, now includes Organic Carbon Enhancers from Compressed Biogas (CBG) plants as a recognized fertilizer category.
Positive Impact on Agriculture and the Environment
IBA President A.R. Shukla welcomed the amendment, emphasizing its role in improving soil health and reducing global warming. The association noted that organic fertilizers from biogas fermentation processes will not only enhance agricultural productivity but also create new revenue streams for the industry.
Addressing Declining Soil Organic Carbon Levels
India’s Soil Organic Carbon (SOC) content has drastically declined from 1% to just 0.3% over the past seven decades. The use of organic carbon enhancers can help restore soil fertility by increasing organic carbon levels, leading to better crop yields and sustainable farming practices.
FOM Production
Currently, India produces about one million metric tonnes of Fermented Organic Manure (FOM) from CBG plants. However, the IBA predicts this number could rise to 7 million metric tonnes as biogas projects expand. This growth could help meet fertilizer demand for large agricultural regions like Rajasthan.
Government Support to Drive Industry Growth
The government’s backing is expected to increase demand for organic fertilizers and encourage the establishment of more CBG plants. This will strengthen waste-to-wealth initiatives, benefit the biogas industry, and contribute to overall economic growth.
Revenue Potential from Organic Fertilizer
The IBA has been advocating for a SATAT-like program (Sustainable Alternative Towards Affordable Transportation) for Fermented Organic Manure. Industry estimates suggest that solid-FOM alone could generate at least $2.6 billion in additional revenue. As reported by knnindia.co.in, if liquid FOM is included, this figure could double or even triple, further driving industry expansion.
