Union Budget: Indian Biogas Association seeks Rs 1,000-cr fund to promote fermented manure use in agriculture

New Delhi: Ahead of the Union budget, the Indian Biogas Association has requested the government to set a Rs 1,000-crore fund to promote the use of fermented organic manure (FOM) in agriculture.

Biogas plants convert organic wastes such as crop waste, animal manure, municipal waste, vegetable waste, etc into clean biogas through anaerobic digestion to produce clean energy. In this process FOM is generated as a waste.

As per the association, around 2,000 tonnes of FOM is generated in the country which can be used in agriculture.

In its Budget recommendations, the industry body has said it recommends a Rs 1,000-crore fund to promote fermented organic manure. Most of the government incentives are focusing on the gas part of the biogas plant, but equally important is the organic fertilizer that comes out as a byproduct.

"Rs 1,000 crore fund needs to be put in place to streamline the end-to-end process, especially to form and channelise the whole process through a committee of government representatives, industry associations, and individuals working in the field of biogas. A part of the fund may go to incentivise and acknowledge producers of bio-fertilizers to promote production, and try out different business models, including contract farming," it said.

The government is already discussing making the purchase of biofertilizer mandatory for every bag of urea purchased by a farmer in order to promote organic nutrients and reduce the use of chemical fertilizers. Biogas plant-based fertilizer or FOM can be an addition to it, it added.

It is important to promote balanced and sustainable use of chemical fertilisers by bundling biogas plant-based fertilizer with urea.

Under the fund, the organic fertilizer is sold to farmers at subsidised/unsubsidised prices to encourage them to opt for sustainable agricultural practices. This will ensure that the bio-fertilizers are available in bulk for agriculture.

"The government may also implement policies to procure the bio-fertilizer through Public Sector Undertaking (PSUs) at a predetermined price based on the nutrient components in the slurry. The FOM can then be linked to enrichment units such as Phosphate Rich Organic Manure units, and other organic enrichment plants for value addition," the association said.