IBA pitches for incentives to promote bio-fertilizers

Industry body Indian Biogas Association (IBA) has demanded a host of incentives including a dedicated Rs 1.4 lakh crore 'Biogas-Fertilizer Fund' that aims to promote the use of organic fertilizers for improved soil and human health.

It said the key to accelerating the Bio-CNG/CBG (compressed natural gas/biogas) industry's growth lies in crafting pro-biofertilizer policies. This includes favorable regulations, tax exemptions, financing incentives, and accessible credit options, with a spotlight on fermented organic manure, it noted. Finance Minister Nirmala Sitharaman will present an interim budget for financial year 2024-25 on February 1. In a pre-budget memorandum submitted earlier this month to the finance ministry, the IBA has proposed to set up a new 'Sustainable Biogas Plant Fertilizer-Based Cultivation Programme' (SuBiCulP) with a dedicated Rs 1.4 lakh crore fund for five years.

This all-encompassing initiative, based on SATAT (Sustainable Alternative Towards Affordable Transportation scheme) like policy for organic manure, aims to secure organic fertilizers for improved soil and human health, it explained. The IBA has suggested defining a framework by the concerned Ministry for the procurement of biomass at a FRP (Fair Remunerative Price), which needs to be worked out based on cost and markup. In order to arrive at a rational pricing of the FOM (Fermented Organic Manure) or any organic fertilizer under consideration, it is suggested to holistically consider a nutrient-based (i.e. N, P, K, and organic Carbon) valuation approach to appropriately determine the market price of the FOM. In order to be a competitive option for end-usage of FOM by farmers, the IBA suggested a 'floor market price' at par with the Urea Retail Prices (presently Rs 242 per 45 kg bag), i.e. approx. Rs 5.0-5.5 per kg (exclusive of taxes).