The Government of India is promoting the use of organic fertilizers through the Market Development Assistance (MDA) scheme, Union Minister for Chemicals and Fertilizers, Mr. Jagat Prakash Nadda, informed the Rajya Sabha. The scheme supports organic fertilizers produced from biogas plants under the GOBARdhan initiative and compressed biogas (CBG) facilities. Under the programme, financial assistance of Rs. 1,500 (US$ 16.32) per metric tonne is provided for products such as Fermented Organic Manure (FOM), Liquid Fermented Organic Manure (LFOM), and Phosphate Rich Organic Manure (PROM). As of March 4, 2026, a total of 120 CBG and biogas plants have been registered on the Integrated Fertilizer Management System (iFMS) portal, enabling them to market these organic fertilizers through an organised platform. To strengthen distribution channels, fertilizer marketing companies have signed 44 MoUs with CBG plant operators to market these products across the country.
The government has also undertaken large-scale outreach initiatives to raise awareness among farmers about the benefits and proper usage of organic fertilizers. Between February 2025 and January 2026, around 24 fertilizer marketing companies organised 15,690 Kisan Sangoshthis and field camps across India. These programmes included demonstrations on the application of FOM, LFOM, PROM, Press Mud-based Manure (PDM), and city compost, along with technical guidance on fertilizer dosage and crop-specific practices. Government data shows that sales of FOM, LFOM, and PROM rose sharply from 56,058 metric tonnes in 2023–24 to 3.36 lakh metric tonnes in 2024–25, and further to over 16.72 lakh metric tonnes during 2025–26 (up to February 28). Overall sales since the scheme’s launch have crossed 20.65 lakh metric tonnes, supported by the release of Rs. 111.72 crore (US$ 12.15 million) under the Market Development Assistance (MDA) scheme.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.