The rising population of India is rapidly shifting their preferences to everything organic and biofertilizers are no stranger to this trend. India’s biofertilizer market is skyrocketing, as both farmers and consumers become increasingly conscious of the harmful effects of chemical fertilizers. As part of it, the demand for eco-friendly alternatives like biofertilizers will grow inevitably.    

In 2024, the market was valued at USD 10.6 million, due to growing awareness, technological advancements, and unwavering government support. The Indian biofertilizer market is not just a chance at environmental sustainability, but a market for sustainable profit returns as well. Let’s take a look at how interested business ventures can gain an upper hand in this growth.

What’s Guiding the Market to its heights?

Health-Conscious Consumer Demographic

• Increasing awareness of the harmful effects of chemical fertilizers has led farmers to adopt biofertilizers over chemical fertilizers. Row crops, like rice and wheat, dominate organic farming, making up nearly 88.3% of the organic crop area.
• In India, organic farming accounts for 2% of total agricultural land, with approximately 1.76 million hectares dedicated to organic agriculture and an additional 3.63 million hectares undergoing conversion to organic practices.

Introduction of Agro-Technology

• Innovations such as the "Tiny Capsule Technology," introduced by the Indian Council of Agricultural Research (ICAR), offer cost savings to farmers by making the transportation and storage of biofertilizers more efficient as a single capsule can replace bulky traditional fertilizers.

Rising User-Demand for Organic Products

• In 2023, India is home to approximately 30% of global organic producers as a huge part of the population prefers organic food for its health benefits. As a result, the nation’s domestic organic food market is growing at a 13% annual rate fuelling the biofertilizer market.
• In 2023, India's organic food exports are valued at around USD 1.04 billion annually, indicating a robust international demand for Indian organic products

Benefits to the Environment

• Biofertilizers reduce soil and water pollution to enhance soil health, boosting crop yields by 20-25% and productivity by 10-15%.
• They also help mitigate climate change by reducing methane emissions in rice fields and improving water retention in soil by 20%.

Government Support Fuelling the Growth

The Indian government is actively promoting biofertilizers through various initiatives:

• Firstly, Initiatives like ‘Parampragati Krishi Vikash Yojana’ (PKVY) provide INR 50,000 per hectare over three years to farmers adopting organic practices.
• Secondly, ‘Mission Organic Value Chain Development for Northeast Region’ (MOVCDNER) offers financial support of INR 25,000 per hectare and has expanded organic farming to 1.73 lakh hectares in the northeast by 2023.
• Additionally, ‘The National Mission on Oilseeds and Oil Palm’ (NMOOP) provides a 50% subsidy for using biofertilizers like mycorrhiza and phosphate solubilizing bacteria.

Why Act Now?

• As row crops like rice, wheat, and millet lead biofertilizer consumption, capture 88% of the market along with cash crops like sugarcane and cotton, the demand for organic food rose globally, with India producing nearly 3.4 million metric tons of certified organic products between 2021-22.
• Hence, India’s biofertilizer market is still developing, leaving ample space for new parties to explore, innovate and grow. With rising consumer demand, strong government support, and a goal for environmental sustainability underlining the growth, the Indian Biofertilizer market is yielding high profit while aligning with the national as well as global food security.