Market Development Assistance (MDA) for Organic Fertilizers from BG & CBG Plants
The Government of India is giving a big push to clean energy and sustainable farming through the GOBARdhan initiative. If you are planning to invest in a Bio-Gas (BG) or Compressed Bio-Gas (CBG) plant, there is now an additional opportunity to earn revenue – not just from selling gas, but also from the by-products of your plant.
Under this initiative, organic fertilizers like:
Fermented Organic Manure (FOM),
Liquid Fermented Organic Manure (LFOM), and
Enriched Phosphate Rich Organic Manure (PROM)
produced as by-products of BG/CBG plants can now be marketed with government support.
What is Market Development Assistance (MDA)?
The Government has introduced the MDA scheme to promote the sale and use of organic fertilizers.
👉 ₹1,500 per metric tonne (MT) will be provided as subsidy as financial assistance for every tonne of FOM, LFOM, or PROM sold from BG/CBG plants registered under the GOBARdhan portal.
This support is available for three years (FY 2023-24 to FY 2025-26), with a total budget of ₹1451.82 crore allocated for the scheme
Who is Eligible?
Only BG/CBG units registered on the Unified GOBARdhan Portal can avail this benefit.
The organic fertilizer produced must conform to the standards under the Fertilizer Control Order (FCO), 1985.
Both manufacturers and fertilizer marketing companies can claim MDA after proper quality testing and certification
How Will Marketing Work?
Through Fertilizer Companies:
Fertilizer marketing companies can procure FOM, LFOM, and PROM from BG/CBG plants and sell them in packed form.Direct by Manufacturers:
BG/CBG plant owners can directly market their products in packed bags or bulk (bulk sale initially allowed on experimental basis).Quality Certification:
Every batch (packed or bulk) must be tested at government-approved labs, and certified by the State Agriculture Department or State Energy Development Agency.Packaging Rules:
Bags must clearly print the MRP, constituents, manufacturer and marketer details, and shelf life.
The printed MRP must show the effect of MDA subsidy, so that the benefit reaches farmers.
Why is this Important for Investors?
✅ Extra Revenue Stream: Apart from gas sales, investors can now earn from organic fertilizer sales with added government support of ₹1,500/MT.
✅ Growing Demand for Organic Fertilizers: Farmers are increasingly adopting organic practices, and states are promoting balanced fertilizer use.
✅ Sustainability Branding: Investors in BG/CBG plants will now be positioned as leaders in both clean energy and eco-friendly farming.
✅ Government Backing: With MDA support and inclusion under SATAT (MoPNG), MNRE’s Waste-to-Energy, and Swachh Bharat Mission, this ecosystem is strongly supported by multiple ministries.
Example for Better Understanding
Suppose your CBG plant produces 5,000 MT of FOM in a year.
Market price for sale = ₹3,000/MT (assumption)
MDA support = ₹1,500/MT
So, for 5,000 MT, you will receive:
5,000 × ₹1,500 = ₹7.5 crore directly as government support.This is over and above the revenue you earn from selling the organic fertilizer in the market.
Key Takeaway
The MDA scheme makes investment in BG and CBG plants more attractive by ensuring an additional income stream from organic fertilizers. For investors, this means:
Higher project viability
Faster payback period
Long-term sustainability
If you are exploring investment in CBG/Bio-Gas projects, this is the right time to move forward and take advantage of both energy sales and organic fertilizer incentives.
👉 At Adroit Corporation, we specialize in Project Finance, Subsidy Assistance, and Detailed Project Reports for BG & CBG projects. We can help you structure your investment to maximize benefits under the MDA scheme.
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