Indian Biogas Association Advocates for Fair Pricing of Fermented Organic Manure at Rs 5.5 per kg
The Indian Biogas Association (IBA) has embarked on a mission to establish an equitable and financially rewarding pricing structure for ‘fermented organic manure’ (FOM) at approximately Rs 5.5 per kg, excluding the government incentive of Rs 1.5 per kg. This endeavor seeks to provide robust support to biogas plants across the nation.
Recent governmental strides have led to the introduction of the Market Development Assistance (MDA) Scheme, which has garnered an endorsement of Rs 1,451 crore to bolster the promotion of organic fertilizers. In this framework, the biogas-produced bio-fertilizer, technically referred to as FOM, receives an additional Rs 1.5 for each kilogram, in addition to its sale price.
The IBA has formally addressed the Ministry of Chemical and Fertilizer with a memorandum that underscores the importance of initially establishing a just and competitive market price for FOM. In its proposal, the IBA has advocated for a ‘floor market price’ closely aligned with the existing Urea Retail Prices, currently standing at Rs 242 per 45kg bag. This translates to approximately Rs 5.5 per kg, exclusive of taxes.
The IBA’s proposal also outlines that the Market Development Assistance of Rs 1.5 per kg should be a supplementary incentive provided on top of the aforementioned floor market price, effectively empowering FOM producers.
Recognizing the need for accommodating additional logistical and transportation expenses, the IBA has suggested an incremental charge of approximately Rs 50 per ton per km, adding flexibility to the proposed floor market price.
Within the country, FOM has been observed to be traded within a broad spectrum of prices, ranging from Rs 0.50 to 4.50 per kg. The recently acknowledged differentiation between solid and liquid FOM within the Fertilizer Control Order (FCO) has heightened the urgency to establish quality standards, thereby boosting the credibility and reception of FOM.
The IBA proposes a collaborative effort between the Department of Fertilizer, the Bureau of Indian Standards (BIS), and pertinent industry stakeholders to formulate an appropriate BIS standard or Eco-Mark. This standardization would serve as a quality protocol, fostering enhanced market acceptance and alignment with FOM.
In its strategic recommendations, the IBA has advised the Department of Fertilizer to prompt Fertilizer Marketing Companies to express their interest in registering FOM producers and facilitating the off-take from both centralized and decentralized biogas/bio-CNG plants.
To streamline the process, the IBA suggests the assignment of district-level fertilizer marketing companies to manage applications for Expression of Interest (EOI) from corresponding FOM producers within specific districts or Geographical Areas (GAs).
Furthermore, the IBA encourages these fertilizer marketing entities, including names like IFFCO, KRIBHCO, and NFL, to actively partake in co-marketing FOM alongside chemical fertilizers through their established dealer networks and related marketing channels. This collaborative approach is envisioned to amplify the reach and impact of FOM across the agricultural landscape.
