Market Development Assistance

Market Development Assistance (MDA) for organic fertilizers is implemented by the Department of Fertilizers, Ministry of Chemicals and Fertilizers, Government of India. The scheme was approved to promote organic fertilizers produced from plants established under the GOBARdhan initiative and related Biogas or Compressed Bio-Gas support programmes.

The assistance is intended to improve the marketability and affordability of organic fertilizers produced from eligible waste-to-energy and biogas-linked plants. The scheme covers Fermented Organic Manure (FOM), Liquid Fermented Organic Manure (LFOM) and Phosphate Rich Organic Manure (PROM).

Key financial assistance:

• Market Development Assistance is ₹1,500 per metric tonne for eligible FOM, LFOM and PROM sold under the scheme.
• Assistance is linked to the eligible quantity actually sold and recorded through the prescribed Point of Sale (POS) system.
• The original approved scheme outlay was ₹1,451.84 crore for FY 2023-24 to FY 2025-26.
• The approved outlay included a ₹360 crore corpus for research gap funding.
• Research gap funding is intended for eligible Central and State Research Institutes and non-private fertilizer cooperatives, subject to the applicable conditions.

Eligible organic fertilizers:

• Fermented Organic Manure (FOM).
• Liquid Fermented Organic Manure (LFOM).
• Phosphate Rich Organic Manure (PROM).

Eligibility of applicants and units:

• Applicant may be a manufacturing-cum-marketing entity, Compressed Bio-Gas operator, Bio-Gas operator, marketer or distributor under the GOBARdhan framework, subject to the applicable conditions.
• The applicant must be a Fertilizer Marketing Company marketing eligible organic fertilizers, where applicable.
• Organic fertilizers must be produced at eligible Bio-Gas or Compressed Bio-Gas plants established under the GOBARdhan framework.
• The relevant plant should be supported under eligible initiatives such as SATAT, Waste to Energy or Swachh Bharat Mission programmes, as applicable.
• The Bio-Gas or CBG unit must be registered on the GOBARdhan portal as a prerequisite.
• The fertilizers must be marketed in packed form, except where an applicable notification permits experimental bulk or loose sale.
• The products must conform to applicable Fertilizer Control Order, 1985 specifications.
• Quality testing must be carried out through a Government-notified laboratory or an applicable NABL-accredited private laboratory.

Important pricing and packaging conditions:

• Marketing entities must clearly print the Maximum Retail Price (MRP) along with the applicable MDA on the fertilizer bags.
• Where a State subsidy is provided, the benefit must be passed on to farmers through a lower MRP.
• Each bag must display its required constituents, marketing entity details, manufacturer details and shelf-life as prescribed.
• Sale above the printed net MRP must be avoided because such sale can attract action under the Essential Commodities Act.

Bulk or loose sale relaxation:

• Organic fertilizers may be marketed in bulk or loose form on an experimental basis where the required notification is issued by the Department of Agriculture and Farmers Welfare.
• Primary Agricultural Cooperative Societies (PACS) may be engaged as aggregators by Fertilizer Marketing Companies or manufacturers wherever feasible.

Registration and application process:

• First register the eligible Bio-Gas or CBG manufacturing unit on the Unified GOBARdhan portal.
• Submit the necessary plant and operational information to obtain the mandatory registration number.
• Send a physical letter to the Department of Fertilizers communicating willingness to market the eligible organic fertilizers.
• Attach the applicable operational details through Annexure-I for Fertilizer Marketing Companies or Annexure-II for manufacturers.
• Register the manufacturing unit on the prescribed Integrated Fertilizer Management System (iFMS) module.
• After receiving the unique identification number, upload production, sales, MRP, stock and quality-certificate information on the iFMS portal.
• Ensure batch-wise or dispatch-wise quality testing at an accredited laboratory.
• Get the applicable quality test report validated by the State Agriculture Department or State Energy Development Agency to obtain the B2-MDA certificate.
• Generate the Direct Benefit Transfer (DBT) claim through the iFMS portal using the prescribed claim format.
• Claims must be generated and submitted within 2 months of the sale or the applicable prescribed claim period.
• Submit the required quality certificate and claim documentation to the Department of Fertilizers for payment.

Disbursement mechanism:

• MDA is available only for eligible quantity sold through POS machines.
• Benefit claims are generated through the Integrated Fertilizer Management System using the Direct Benefit Transfer (DBT) mechanism.
• The claim must be supported by the prescribed quantity and quality documentation.
• The Department of Fertilizers processes the eligible claim subject to verification and applicable scheme conditions.

Quality and record-keeping requirements:

• The applicant must maintain permanent records on a continuous year-to-year basis.
• Records covering production, stock, dispatch, sales and related transactions must be maintained for audit and verification.
• Records must be made available to the Department of Fertilizers or the Fertilizer Flying Squad whenever required.
• Required records include stock registers, daily production reports, dispatch records, gate passes, invoices, sales day books, delivery challans and raw-material records.

Documents required at application stage:

• Letter intimating willingness to market organic fertilizers.
• Purchasing Agreement where marketing is through a Fertilizer Marketing Company.
• Annexure-I containing Fertilizer Marketing Company details, where applicable.
• Annexure-II containing organic fertilizer manufacturer details, where applicable.
• Company Tax Identification Number Certificate.
• Company Permanent Account Number (PAN) Card.
• Bank account details, including account number, IFSC, account-holder name and bank address.
• GOBARdhan portal registration certificate.

Documents required for benefit disbursal:

• Organic fertilizer Quantity Certificate in Proforma B1-MDA.
• Organic fertilizer Quality Certificate in Proforma B2-MDA.
• Quality Test Report from an eligible Government-notified or NABL-accredited laboratory.
• Prescribed MDA payment claim proforma carrying the digital signatures of the Chartered Accountant or Statutory Auditor and the Authorized Officer.

Verification and audit records:

• Stock Register showing opening balance, production, quantity dispatched and closing balance.
• Daily Production and Stock Report authenticated by the Production Manager.
• Serially numbered and signed Dispatch and Stock Transfer Advice.
• Dispatch Instructions issued from headquarters.
• Serial-numbered Gate Passes.
• Register of Gate Passes Issued.
• Register of Dispatches.
• Serially numbered Sales Invoices supported by warehouse delivery notes.
• Sales Day Book.
• Delivery Challan signed by the receiver as confirmation of receipt.
• Raw Material Stock Register showing materials purchased and consumed.

The scheme should not be treated as a general subsidy for every fertilizer manufacturer. Eligibility depends on the origin of the organic fertilizer, registration of the relevant GOBARdhan-linked plant, compliance with quality standards, prescribed sales records and the applicable Department of Fertilizers procedures.

The latest Government update available in March 2026 confirmed continued implementation of the MDA mechanism, including ₹1,500 per metric tonne assistance and registration of 120 CBG/Biogas plants on the iFMS portal as of 4 March 2026. Applicants should verify the current operational instructions and claim requirements before filing a claim.