Government Schemes and Policies in Indian Organic Fertilizer Landscape

Introduction

The organic fertilizer market in India is gaining strong traction as farmers, policymakers, and agribusinesses respond to soil degradation and growing consumer demand for chemical-free produce. India already boasts as the fifth largest organic farmland area in the world with 2.30 million hectares, and organic fertilizers are a key enabler of this transition. With rising concerns about groundwater contamination and crop resilience, organic inputs are increasingly being promoted alongside traditional fertilizers.

For a broader understanding of India’s fertilizer sector, explore the India Fertilizer Market

Policy Support for Organic Inputs

Government schemes such as Paramparagat Krishi Vikas Yojana (PKVY) and the Mission Organic Value Chain Development for the North Eastern Region (MOVCDNER) are providing subsidies and training for organic fertilizer adoption. The government has also mandated city compost blending in chemical fertilizers to reduce landfill burden and promote nutrient recycling. These policies are expected to double organic fertilizer consumption by 2030.

Rising Farmer Adoption

Farmers in states like Sikkim, Uttarakhand, and parts of Maharashtra are leading fertilizer adoption.  Sikkim has been 100% organic since 2016. Demand is also growing in export-oriented crops, spices, tea, and basmati rice, where international buyers increasingly demand residue-free certification. Reports suggest that a substantial portion of India’s organic exports in 2022 relied on organic manure and compost-based fertilization practices.

Table of Contents

1. Market Scope and Classification of Organic Fertilizers
2. Policy Support and Government Schemes
3. Growth in Compost and Vermicompost Demand
4. Export-Oriented Organic Farming Needs
5. Market Size, CAGR, and Forecasts through 2035
6. Key Players and Industry Investments
7. Regional Adoption Trends Across India
8. Challenges in Certification and Logistics
9. Farmer Education and Trust-Building Measures
10. Outlook for Organic Fertilizers by 2035

Market Size and Growth

India’s organic fertilizer market is projected to grow rapidly, with demand coming from both smallholder farmers and large commercial farms. The compost and vermicompost segment dominates the industry, but microbial-based organic fertilizers are seeing faster adoption. Rising prices of chemical fertilizers in 2022–23 has also prompted many farmers toward organic alternatives, which are often cheaper on a per-acre basis.

Industry Players and Investments

Both public and private players are entering the organic fertilizer space. Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has scaled up city compost production, while startups like Sresta and Organic India are integrating fertilizer production with branded organic food exports. Companies like Coromandel International are launching dedicated bio-organic division to serve both domestic and export markets.

Regional Trends in Adoption

The northeast region remains a priority zone for organic fertilizers, supported by central funding under MOVCDNER. Southern India, particularly Kerala and Karnataka, is adopting organic manures for high-value horticultural crops. Meanwhile, Maharashtra and Madhya Pradesh are focusing on large-scale composting from agro-industrial waste, especially from sugarcane mills and cotton processing plants.

Challenges to Market Expansion

Limited shelf life of some organic inputs, lack of standardized certification, and uneven distribution networks slow adoption. Surveys by ICAR indicate that 1/3 of farmers fully trust organic fertilizers for high-yield crops, highlighting the need for better extension services and demonstration projects. Logistics is another hurdle as compost and manures require bulk movement, raising per-ton transport costs compared to chemical fertilizers.

Outlook for 2035

With rising consumer demand for organic food, organic fertilizers are expected to be a critical enabler for supply chains. Policy incentives, corporate participation, and export-linked demand will keep growth robust.

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