The Central Government’s Market Development Assistance (MDA) scheme promotes organic fertilizer. Under it, ₹1,500 per Metric Tonne is given on the sale of organic fertilizer made at biogas and Compressed Bio-Gas (CBG) plants. This assistance does not go directly to farmers — it goes to CBG/biogas plants and Fertilizer Marketing Companies, so that organic fertilizer becomes cheaper and more easily available. The scheme is linked to the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) initiative, launched in 2018 under the Swachh Bharat Mission (Grameen).
Who gets the ₹1,500 per tonne
The assistance applies to only three kinds of organic fertilizer — Fermented Organic Manure (FOM), Liquid Fermented Organic Manure (LFOM) and Phosphate Rich Organic Manure (PROM). These are made at biogas/CBG plants under the GOBARdhan initiative. Plants must register on the Integrated Fertilizer Management System (iFMS) portal — 133 plants were registered as on 23 March 2026. 44 MoUs have also been signed between Fertilizer Marketing Companies and CBG operators.
The current position — a big change
Earlier, the scheme was run by the Department of Fertilizers, with an outlay of ₹1,451.84 crore for FY 2023-24 to 2025-26. On 6 August 2026, the Union Cabinet approved GOBARdhan as the National Circular Bioenergy Scheme — total outlay ₹23,731 crore, FY 2026-27 to 2035-36. SATAT, MDA and other components now sit in one framework, and the nodal ministry is the Ministry of Petroleum & Natural Gas. The ₹1,500 per tonne rate is the Department of Fertilizers’ MDA rate; no separate fresh notification on the rate under the unified scheme has been seen so far.
How much assistance has been given so far
Since inception, ₹202.17 crore of MDA assistance has been released (as on 15 July 2026), supporting the sale of 36.43 lakh Metric Tonnes of FOM/LFOM/PROM. The figure shows that the market for organic fertilizer is growing steadily and the assistance is helping make it available to farmers.
What it means for farmers
Farmers do not have to apply under this scheme — there is no form and no direct subsidy to them. The benefit comes through better availability of organic fertilizer in the market. If you want to buy organic fertilizer, ask your local fertilizer dealer or agriculture department about the availability of FOM/LFOM/PROM.
Frequently Asked Questions
Q1: Who gets the ₹1,500 per tonne under the MDA scheme?
A: CBG/biogas plants and Fertilizer Marketing Companies — on the sale of FOM, LFOM and PROM. Farmers do not receive this amount directly.
Q2: How is it linked to GOBARdhan?
A: MDA applies to organic fertilizer from plants running under the GOBARdhan initiative. Since 6 August 2026, the whole arrangement is part of the unified GOBARdhan National Circular Bioenergy Scheme.
Q3: How does a farmer benefit from this scheme?
A: There is no application for farmers. The benefit is better availability of organic fertilizer — ask your agriculture department about it.
Q4: Is the scheme still running?
A: Yes — since 6 August 2026 it runs under the unified GOBARdhan National Circular Bioenergy Scheme, with the Ministry of Petroleum & Natural Gas as the nodal ministry.
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