Organic fertilizer to boost biogas industry revenue by $2.6 billion: Indian Biogas Association (IBA)

The Indian Biogas Association (IBA) has said that the promotion of organic fertilisers by the government could help generate an additional revenue of $2.6 billion for the biogas industry. The comment by the IBA has come after the Union Government recently amended the 1985 Fertilizer (Inorganic, Organic, or Mixed) (Control) Order. The Ministry of Agriculture and Farmers Welfare has introduced ‘Organic Carbon Enhancers’ from Compressed Biogas (CBG) plants as a new category of fertiliser.

Implemented in February 2025, this change in the policy is expected to benefit both farmers and the environment by enhancing agricultural productivity.

IBA President A R Shukla welcomed the move, emphasizing its potential to improve soil health while also mitigating global warming. Organic fertilisers produced through the biogas fermentation process will provide an additional revenue stream for the industry, the association noted.

Organic Carbon Enhancers help replenish soil organic carbon, boosting plant growth and sustaining agricultural yields. The IBA highlighted that Soil Organic Carbon (SOC) levels in India have dropped from 1% to just 0.3% over the past 70 years. The IBA has also pointed out that the new push by the government offers significant profit opportunities for the industry.

Last July, IBA had recommended that the government enlist state-owned fertilizer marketing firms should manage the distribution of fermented organic manure (FOM) which will directly help in the growth of the biogas sector in India

Currently, India produces approximately 1 million metric tonnes of fermented organic manure (FOM) annually as a by-product of CBG plants. With the expansion of biogas projects, this output could rise to 7 million metric tonnes—enough to meet the fertiliser needs of entire regions, such as Rajasthan.

Government support for organic fertiliser is expected to drive demand, leading to a rise in CBG plants and strengthening the biogas and waste-to-wealth sectors. This, in turn, will contribute to economic growth.

The IBA has been advocating for a policy similar to the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative to support fermented organic manure. “IBA estimates that full realisation of SATAT potential could generate at least $2.6 billion in additional revenue for industry players from solid FOM alone,” it stated, adding that this figure could increase two to three times if liquid FOM is included.