The Market Development Assistance (MDA) Scheme, recently approved by the Cabinet Committee on Economic Affairs, is set to revolutionize organic fertilizer production in India. According to the Indian Biogas Association (IBA), this scheme will support existing biogas plants and stimulate the establishment of 500 new biogas plants. By leveraging this initiative, the country aims to reduce chemical fertilizer imports by 96 lakh tonnes, resulting in a massive cost-saving of Rs 11,000 crore.
Benefits of the MDA Scheme:
The IBA’s study highlights that the MDA Scheme will significantly boost biogas and compressed biogas plants, enabling them to distribute their biofertilizers effectively. The industry body estimates that the scheme will support the production of 9.6 MMTPA of biofertilizer, effectively reducing the reliance on chemical fertilizers. This reduction in imports is estimated to be around 96 lakh tonnes, which is a significant achievement for the Indian agriculture sector.
Enhanced Crop Yields and Cost Savings:
According to an ICAR study, the utilization of biofertilizers can enhance crop yields by 10 to 25% while reducing the dependency on expensive chemical fertilizers. When used in conjunction with chemical fertilizers, biofertilizers can replace nearly 20 to 25% of the required nitrogen and phosphorous. This synergy ensures improved agricultural productivity and cost savings for farmers. The government’s announcement of providing Rs 1,500 per tonne of biofertilizer is a welcome step that will encourage organic alternatives.
Overall Economic Benefits:
The IBA emphasizes that the economic benefits anticipated from this government initiative far exceed the MDA provided. The estimated returns are projected to be over Rs 11,000 crore, which is approximately eight times the initial investment. These benefits include reduced greenhouse gas emissions (CO2, CH4, and N2O), minimized groundwater N-eutrophication, savings from organic waste treatment, improved organic fertilizer value, and a positive impact on biogas production.
Conclusion:
The implementation of the Market Development Assistance Scheme marks a significant milestone in India’s pursuit of sustainable agriculture. The country aims to reduce its reliance on chemical fertilizers by promoting the production and utilisation of biofertilizers, thus reaping substantial economic benefits. This initiative supports existing biogas plants and encourages the establishment of new facilities, creating a positive ripple effect throughout the agricultural sector. The MDA Scheme is a testament to India’s commitment to ecological well-being and the promotion of organic farming practices.
