A shift is currently taking place with regards to the structure of the farming industry in India. The Government of India is focusing on sustainable farming practices instead of the use of chemical fertilizers.
These changes are helping transform GOBARdhan and the Market Development Assistance(MDA) Scheme, which is proving to be of great assistance for numerous new entrepreneurial ventures.
There is immense potential in the organic fertilizer industry with the support of government allocated funds worth over ₹1,451 crores. These funds are targeted to such programs. Hence, this is the right time for entrepreneurs to invest in this industry which is socially beneficial and is expected to provide lucrative profits, so let’s know about the opportunies.
Reasons to Invest in the New Indian Fertilizer Industry
The changes currently taking place in the fertilizer industry in India are incredibly important in this moment. For example, the fact that we import all our Muriate of Potash fertilizer creates unique business opportunities for local organic alternatives.
At the same time, the Government of India under the MDA scheme, which is subsidized by the government, pays organic fertilizer producers a direct subsidy of ₹1,500 per metric ton. This, in turn, lowers the financial barriers for entry to potential producers in the market.
In addition, GOBARDhan has over 65 plants Compressed Biogas on the territory of India, which provides the producers with steady and dependable sources of raw material. Collectively, these reasons add to the appeal of the fertilizer industry for new and potential producers, so let’s know more and delve into the details.
Read More: A Step-by-Step Guide to Launching a Successful Complex NPK Fertilizer Enterprise
GOBARdhan & MDA: Pillars for the foundation of your startup
Together, these two pillars of the government offer a unique opportunity to grow your business.
GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) allows you to convert organic waste, especially cattle dung, to two economically viable products: Compressed Biogas (CBG) and value-added nutrient-rich slurry.
MDA is the Market Development Assistance which provides the government subsidy of ₹1,500 MT to develop value-added organic fertilizers like Fermented Organic Manure (FOM) from slurry generated from GOBARdhan plants.
Let me tell you that the government subsidizes the production of the raw material and subsequently purchases the processed material from you.
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The top 5 entrepreneurial opportunities
This list captures the most promising potentials to spearhead a business.
Units for the Manufacturing of Organic Fertilizers
You may establish a factory to make branded organic fertilizers. Concentrate on products in demand such as Fermented Organic Manure (FOM), Liquid FOM, and Phosphate-Rich Organic Manure (PROM).
You may directly service a GOBARdhan CBG plant for the assurance of a continuous supply of raw materials. The manually operated small-scale unit can be commenced under high initial investments.
Read More: Business Ideas for Entrepreneurship
Distribution and Logistics
The government has already developed a distribution network of enormous proportion consisting of over 2.14 Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs). Most of the supply chain linking producers of fertilizers with these centers is, however, still being constructed.
You can create a logistics company that makes organic fertilizers and has a tech-enabled distribution network. This is a low-cost, high profit business that addresses a major supply chain gap.
Next Generation bio and nano Fertilizers
Fertilizers of the future are modern and high efficiency. You can start a venture that puts its focus on research and development to design bio fertilizes that come with living microorganisms and high-efficiency nano fertilizers, like Nano Urea.
You might provide a business that offers drone spraying services for these liquid fertilizers; directly integrated with the Government’s Namo Drone Didi Program.
Read More: Biofertilizers For Healthy Crops And Soil
Ventures with Focus on Exports
An unmet need for certified organic fertilizers demand exists in neighboring countries. The government has already undertaken commitments to supply fertilizers to Nepal, Bhutan, and Sri Lanka.
You could establish an export-oriented brand compliant with international organic standards. This would enable you to enter international markets and earn foreign exchange.
Integrated Models of Waste-to-Wealth
This is the most powerful model of the circular economy. You could establish a business that:
Gathers organic waste from urban or rural areas. Processes it in a GOBARdhan plant to produce CBG and fertilizer slurry. Sells the CBG to oil companies under the SATAT scheme. Transforms the slurry into subsidized FOM and sells it to farmers under MDA.
This results in the creation of two distinct revenue streams, which enhances the robustness of the business.
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How NPCS Can Assist You
It can be cumbersome to plan for a capital-intensive project like a fertilizer plant. Niir Project Consultancy Services (NPCS) has a solution for this problem. To support the business every step of the way, we provide Direct Project Reports (DPR) to further elucidate project documents.
Our reports break down the manufacturing process, the required machinery, possible market demand, and a comprehensive financial analysis. With a DPR from NPCS, it’s possible to ascertain the bank’s willingness to finance the project. With that, we can make further strategies for the startup.
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Conclusion: Build Your Tomorrow
Unlike some countries, India has elevated organic farming to a sustainable commercial activity rather than a mere eco-sustainable practice. The government’s financial and infrastructural cash subsidies, guaranteed material supply, and excellent distribution network alongside cash subsidies have simplified modalities of entry and investment for potential organic farmers.
Proactive farmers will find multiple revenue streams through organic fertilizer production, equipment designed for organic farming, and technology and product exports. In parallel, the individual will catalyze sustainable environmental practices.
Hence, the business case is strong. Country now offers immense unexplored potential, organic farming practice as one of them. Go ahead.
Organic Fertiliser Business: Frequently Asked Questions: (FAQs)
What is the GOBARdhan scheme?
It is a government project which aims to convert organic waste, especially cattle dung, into compressed biogas (CBG) and organic manure. It is useful for your fertilizer business as it generates raw materials.
What type of subsidy can I get to start my startup?
The MDA policy will allow your company a direct subsidy of ₹1,500 for every metric ton of GOBARdhan-linked organic fertilizer produced and sold.
What is FOM?
FOM is an organic fertilizer which is highly nutritious and of premium quality and manufacturers produce it from the slurry waste of a GOBARdhan biogas plant. It is a major product under the MDA policy.
Is huge amount of investment needed for the startup?
There is no compulsory need for huge amount of investment. Unlike large capital which is needed to set up a manufacturing plant, you can begin with a distribution unit, a logistics center, or a small scale branding and packaging unit with much less investment.
What is the most simple approach to selling my product?
The center is located at over 2.14 lakh PMKSKs which should be used as the primary sales outlet. Retail centers under the PMKSKs are meant to supply fertilizers and other agricultural products to farmers.
