The Indian Biogas Association (IBA) is pursuing for a range of incentives in the upcoming finance budget 2024-25, including the establishment of a dedicated biogas fertilizer fund amounting to ₹1.4 lakh crore. The primary objective of the fund is to encourage the adoption of organic fertilizers, promoting both enhanced soil quality and human health benefits.
IBA emphasizes that fostering the growth of the Bio-CNG/CBG (compressed natural gas/biogas) industry hinges on the formulation of pro-biofertilizer policies. The policies encompass favourable regulations, tax exemptions, financial incentives, and accessible credit options, with a specific focus on fermented organic manure.
In a pre-budget memorandum submitted to the finance ministry, the IBA has proposed the establishment of a comprehensive Sustainable Biogas Plant Fertilizer-Based Cultivation Programme (SuBiCulP). The program, backed by a dedicated ₹1.4 lakh crore fund spanning five years, draws inspiration from the SATAT (Sustainable Alternative towards Affordable Transportation scheme). The aim of SuBiCulP is to ensure a steady supply of organic fertilizers, enhancing both soil quality and human health.
The IBA recommends the formulation of a framework by the relevant ministry for the procurement of biomass at a Fair Remunerative Price (FRP), to be determined based on cost and markup considerations. As reported by Outlook, to make the utilisation of Fermented Organic Manure (FOM) financially viable for farmers, the IBA proposes the establishment of a floor market price, which is equivalent to the prevailing urea retail prices, currently set at ₹242 per 45 kg bag. This translates to approximately ₹5.0-5.5 per kg (excluding taxes).
