IBA calls to fix FOM price at Rs 5.5/kg
The Indian Biogas Association (IBA) has made a case for fixing fair and remunerative price of ‘fermented organic manure’ (FOM) at about Rs 5.5 per kg, excluding the government incentive of Rs 1.5 per kg, to support biogas plants in the country.
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New Delhi: The Indian Biogas Association (IBA) has made a case for fixing fair and remunerative price of ‘fermented organic manure’ (FOM) at about Rs 5.5 per kg, excluding the government incentive of Rs 1.5 per kg, to support biogas plants in the country.
The government has recently announced the Market Development Assistance (MDA) Scheme, under which the government approved Rs 1,451 crore for promoting organic fertilizers. Under MDA, the bio fertilizer coming out of a biogas plant - technically known as FOM, the producers get Rs 1.5 for each kg, over and above the sale price of FOM. The IBA in a memorandum to the Ministry of Chemical and Fertilizer said that in the initial phase of improving the end-market linkage of FOM, it is imperative for the ministry to administer the fair remunerative market price for FOM. The IBA suggested a ‘floor market price’ at par with the Urea Retail Prices (presently at Rs 242 per 45 Kg bag), i.e. approx. Rs 5.5 per kg (exclusive of taxes).
The market development Assistance (MDA) of Rs 1.5 per kg shall be realized over and above the floor market price by the FOM producer, it said. It further added that the floor market price should have additional leeway to accommodate for additional logistics and transportation charges, if incurred and suggested an additional rate of approx. Rs 50/ton/km. According to the IBA, FOM is being sold at a rate ranging from Rs 0.50 to 4.50 per kg in the country. Now, with the separated solid and liquid FOM getting recognized in the Fertilizer Control Order (FCO), it is particularly recommended to devise quality protocols to improve the credibility and acceptance of the FOM, it suggested.
