In a move that could significantly benefit farmers and the biogas industry, the Indian government has taken a major step towards promoting organic fertiliser. The Ministry of Agriculture and Farmers Welfare recently introduced amendments to the 1985 Fertilizer (Inorganic, Organic, or Mixed) (Control) Order. The new policy, which came into effect in February 2025, now includes ‘Organic Carbon Enhancers’ derived from Compressed Biogas (CBG) plants as a recognised category of fertiliser.
This amendment is expected to have a impact on Indian agriculture, improving soil health and enhancing the sustainability of farming practices. Additionally, it will provide a substantial financial boost to the biogas industry, with revenue projections estimated to increase by at least $2.6 billion, according to the Indian Biogas Association (IBA).
A Win-Win for Farmers and the Environment
The declining health of Indian soil has been a growing concern among agricultural experts. Soil Organic Carbon (SOC) levels, which stood at around 1% seven decades ago, have now dropped to a concerning 0.3%. This depletion has had negative consequences on crop yield and overall agricultural productivity. By encouraging the use of Organic Carbon Enhancers from biogas plants, the government aims to restore soil health while also reducing dependency on chemical fertilisers.
According to A.R. Shukla, President of the Indian Biogas Association, this policy revision is a crucial step towards sustainable farming. He highlighted that the introduction of these organic fertilisers would not only improve soil fertility but also contribute to global efforts in combating climate change. By increasing the organic carbon content in soil, the initiative supports long-term agricultural productivity while simultaneously reducing greenhouse gas emissions from chemical fertiliser production.
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Transforming Waste into Wealth
One of the key advantages of this policy is its potential to create additional revenue streams for the biogas industry. Organic fertiliser is produced as a byproduct during the fermentation process in biogas plants. With the government’s formal recognition of Organic Carbon Enhancers, biogas operators can now commercialise these products, turning what was once considered waste into a valuable agricultural input.
India currently generates approximately 1 million metric tonnes of fermented organic manure (FOM) annually from CBG plants. With the anticipated growth in biogas infrastructure, this number could increase sevenfold, reaching 7 million metric tonnes. To put this into perspective, such a supply would be enough to fulfil the fertiliser requirements of entire regions like Rajasthan, significantly reducing reliance on chemical alternatives.
Economic Growth and Industry Expansion
Beyond environmental and agricultural benefits, this policy change is expected to stimulate economic growth within the biogas sector. The increased demand for organic fertiliser will likely encourage the establishment of more CBG plants across the country. This expansion will not only create employment opportunities but also contribute to India’s broader waste-to-wealth initiatives, which focus on turning organic waste into commercially viable products.
The Indian Biogas Association has been a strong advocate for integrating fermented organic manure into the government’s existing schemes. The association has urged policymakers to implement a structured program similar to the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which has been instrumental in promoting compressed biogas as a clean energy source. The IBA believes that a similar framework for organic fertiliser would further drive industry growth and ensure widespread adoption among farmers.
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A $2.6 Billion Opportunity—And Growing
With the full implementation of this policy, the Indian Biogas Association estimates that industry players could see revenue increases of at least $2.6 billion. This figure is based on the commercialisation of solid fermented organic manure alone. If liquid FOM is also monetised, the revenue potential could be two to three times higher, presenting a significant financial opportunity for biogas entrepreneurs.
The future of organic fertiliser in India looks promising, with government backing providing the necessary momentum for large-scale adoption. As more farmers transition to sustainable fertilisation methods, the biogas industry stands to play a crucial role in shaping the country’s agricultural landscape. By aligning environmental sustainability with economic growth, this initiative marks a transformative step towards a greener and more self-sufficient India.
