Centre’s amendments to fertiliser rules is a step forward for managing manure from CBG plants

For years, Indian farmers have struggled with declining soil fertility, while compressed biogas (CBG) plants have grappled with managing their nutrient-rich by-products. A recent amendment to the Fertiliser Control Order (FCO) aims to solve both problems by introducing a new category for organic carbon enhancers. But with several critical gaps still unaddressed, is this policy a game-changer or just a half-measure?

The Union Ministry of Agriculture and Farmers’ Welfare, in February 2025, issued a notification amending the existing Fertilizer (Control) Order of 1985. The amendment, titled the Fertiliser (Inorganic, Organic or Mixed) (Control) (Third) Amendment Order, 2025, introduces a new category termed “organic carbon enhancers from CBG plants.”

This notification rightly addresses concerns in both the agricultural and CBG manufacturing sectors. 

In the farming sector, it will help replenish the depleted carbon levels in soils across many Indian states. Most Indian soils are deficient in organic carbon and macronutrients, highlighted a 2022 report by the Delhi-based think tank the Centre for Science and Environment (CSE) titled State of Bio fertilizers and Organic Fertilizers in India.

Soils all over the country have levels of organic carbon and macronutrients that are either “very low,” “low” or “medium.” The implementation of this notification is expected to improve soil quality, counteracting the deterioration caused by excessive chemical fertiliser use. 

The scale of soil degradation is alarming. The CSE study analysed 50 million soil samples in government-approved laboratories between 2015-16 and 2018-19 and found that around 85 per cent were deficient in organic carbon, 97 per cent lacked available nitrogen, 83 per cent were deficient in phosphorus and 71 per cent were low in potassium.

The organic carbon deficiency is particularly severe in Haryana, followed by Punjab, Uttar Pradesh, Rajasthan, Tamil Nadu, Mizoram and the Andaman and Nicobar Islands.

The notification also represents an effort to improve waste management in the CBG sector, where many units have struggled with proper disposal. CBG is a biofuel produced using feedstock such as paddy straw, municipal solid waste, press mud from the sugar industry and cattle dung or poultry litter. 

The by-product generated during CBG production, known as bio-slurry or biodigestate, is rich in nutrients and has significant market potential. In solid form, it is termed Fermented Organic Manure (FOM), while in liquid form, it is known as Liquid FOM (LFOM). These were previously classified under the FCO as Biomanure/Biofertiliser through Gazette notifications in 2020 and 2021.

However, a long-standing issue has been compliance with FCO standards. According to industry experts, FOM/LFOM often fails to meet the minimum requirement of 5 per cent NPK by weight (availability of nitrogen, phosphorus and potassium). Additionally, FOM derived from agricultural residues is fibrous and does not pass through a 4mm sieve as required for FOM with 70 per cent moisture. These challenges have limited its adoption by farmers, leaving CBG plants with large quantities of unutilised FOM/LFOM. 

In a typical CBG unit, around 88-92 per cent of the total feedstock processed results in FOM/LFOM, creating major storage, processing and disposal challenges — especially in states like Punjab and Haryana, where barren land for disposal is scarce.

Industry response and the road ahead

Shashi Hegde, founder-director of Bengaluru-based technology provider Hycons Bioenergy Pvt Ltd, stated that the amendment to the Fertilizer Control Order marks a significant milestone for the CBG sector, addressing a long-standing request from producers. “The fertiliser ministry has made a science-backed decision after navigating multiple challenges,” he said.

Looking ahead, a key priority will be educating farmers about the benefits of this organic fertiliser. Additionally, the introduction of a unified national brand could help ensure consistency, quality, and accessibility for farmers across India, Hegde added.

While the notification is a step in the right direction, several issues remain unaddressed. It does not specify revised quality standards for “organic carbon enhancers from CBG plants.” Once these standards are defined, an awareness campaign will be needed to encourage FOM uptake among farmers.

Another crucial aspect is the involvement of fertiliser companies in FOM/LFOM procurement. If these companies begin sourcing FOM/LFOM from CBG units and blending it with NPK fertilisers and other soil nutrients, it could reduce the reliance on chemical fertilisers while enriching soil with organic carbon.

This, in turn, would enhance nutrient availability and improve overall soil health. Addressing these gaps will be essential to ensuring the long-term success of FOM/LFOM in India’s agricultural landscape.