MDA scheme to cut 96 lakh tonnes chemical fertiliser imports; to reap benefits of Rs 11,000 cr: Indian Biogas Association

The Market Development Assistance (MDA) Scheme will increase organic fertilisers production from Gobardhan Plants and will cut 96 lakh tonnes chemical fertiliser import and reap benefits worth Rs 11,000 crore, according to Indian Biogas Association (IBA).

Earlier in June this year, the Cabinet Committee on Economic Affairs had approved the Rs 1,451-crore MDA scheme, which consists of innovative incentive mechanisms for the restoration, nourishment, and betterment of mother earth.

In its study, the IBA said this scheme will give impetus to not only existing biogas and compressed biogas plants, which are struggling to channelise their biofertiliser, but will provide additional support for at least 500 new Biogas plants.

In case, the given MDA fund is channelled, 9.6 MMTPA of generated biofertiliser shall be supported, leading to a reduction in the import of chemical fertiliser, the industry body said.

The IBA estimated 96 lakh tonnes reduction in the import of chemical fertiliser through the MDA.

A biogas plant produces a significant fraction (around 10 per cent–15 per cent) of the input as organic fertiliser called fermented organic manure (FOM), it said.

As per an ICAR study, biofertilisers can improve crop yields by 10 to 25 per cent and supplement costly chemical fertilisers (N, P) by nearly 20 to 25 per cent in most cases, when used along with the chemical fertilisers.

From this viewpoint, it said the announcement of Rs 1,500 per tonne of biofertiliser is a welcome step.

This will push a minimum of 3.2 MMT per year of biofertiliser into Indian soil, it added.

The body said that the overall benefits envisaged by the government's move are almost eight times greater than the MDA provided, which is above Rs 11,000 crore.

Considering the storage, handling, and distribution of liquid fermented organic manure, the value of GHG reduction (CO2, CH4, and N2O reduction), the value of reduced N-eutrophication of ground water, savings related to organic waste treatment, and the value of improved organic fertiliser, apart from the direct benefit of biogas, every rupee contributed from the government side to support biofertiliser will give around eight to ten times the return, it said.