Market Development Assistance (MDA) Scheme is a central government plan that gives a support of ₹1,500 per Metric Tonne to promote organic fertilizers produced at Bio-Gas and Compressed Bio-Gas plants under the Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-Dhan) initiative.
Scheme has been closed or it was a one time scheme which has been closed by the government.
The Union Cabinet cleared the scheme for a three year period running from FY 2023-24 to FY 2025-26. The Department of Fertilizers under the Ministry of Chemicals and Fertilizers runs the support. It covers Fermented Organic Manure (FOM), Liquid Fermented Organic Manure (LFOM) and enriched Phosphate Rich Organic Manure (PROM). The support is given only for these organic fertilizers made at plants registered under the GOBAR-Dhan umbrella.
Market Development Assistance - Main Details
The scheme was approved on the back of the Budget Announcement 2023. The Union Cabinet approved the plan with a total outlay of ₹1,451.84 crore for the three year period, which includes a corpus of ₹360 crore set aside for research and gap funding. This research corpus can be used only by Central or State Research Institutes and non-private fertilizer cooperatives.
As on 4 March 2026, 120 Bio-Gas or Compressed Bio-Gas plants were registered on the Integrated Fertilizer Management System (iFMS) portal for selling these organic fertilizers. Fertilizer Marketing Companies also signed 44 MoUs with CBG operators for marketing FOM, LFOM and PROM. The impact of the scheme is being reviewed by NITI Aayog now that the scheme period has ended.
| Detail | Information |
|---|---|
| Scheme Name | Market Development Assistance |
| Level | Central Government |
| Nodal Ministry | Ministry of Chemicals And Fertilizers |
| Nodal Department | Department of Fertilizers |
| Benefit Amount | ₹1,500 per Metric Tonne |
| Scheme Period | FY 2023-24 to FY 2025-26 |
| Total Outlay | ₹1,451.84 crore |
Benefits
Eligible marketing entities get a fixed cash support on the sale of organic fertilizers. The following benefits were given under the scheme.
- Financial support of ₹1,500 per Metric Tonne on the sale of Fermented Organic Manure, Liquid Fermented Organic Manure and enriched Phosphate Rich Organic Manure.
- A research gap funding corpus of ₹360 crore reserved for Central or State Research Institutes and non-private fertilizer cooperatives.
- Total budget outlay of ₹1,451.84 crore for the period 2023-24 to 2025-26, covering all the biogas and CBG support programs under GOBAR-Dhan.
- Support is calculated only on quantities sold through Point of Sale (PoS) machines.
- Claims must be filed through the Integrated Fertilizer Management System (IFMS) portal within two months of the month of sale.
- Marketing entities must print the Maximum Retail Price (MRP) and the MDA amount on the product bags.
Eligibility
Only entities linked to the GOBAR-Dhan network could apply for this support. The main conditions are given below.
- Must be a manufacturing-cum-marketing entity, Compressed Bio-Gas operator, Bio-Gas operator, marketer or distributor under the GOBAR-Dhan initiative.
- Must be registered on the unified GOBAR-Dhan portal of the Department of Drinking Water and Sanitation.
- Fertilizers must meet the specifications under the Fertilizer Control Order (FCO) 1985, as amended from time to time.
- Quality testing must be done at Government-notified laboratories or NABL-accredited private laboratories.
- Applicants must make sure the organic fertilizers are marketed in packed form only.
Application Process
Registration Process
Applicants first had to register their Bio-Gas or Compressed Bio-Gas manufacturing units on the unified GOBAR-Dhan portal of the Department of Drinking Water and Sanitation to receive a required registration number. This number is a basic condition to claim the support.
Application Procedure
After registration, the entity had to follow a set process to get into the payment cycle.
STEP 1 - Submit a physical letter of willingness to market organic fertilizers to the Department of Fertilizers.
STEP 2 - Submit the operational details as per Annexure-I for companies or Annexure-II for manufacturers.
STEP 3 - Register on the Integrated Fertilizer Management System (IFMS) portal to get a unique identification number.
STEP 4 - Upload production, sales and stock data on the IFMS portal on a regular basis.
Disbursal Process
For receiving the payment, the entity had to complete the claim cycle correctly.
STEP 1 - Obtain a B2-MDA quality certificate from the State Agriculture Department or the State Energy Development Agency.
STEP 2 - Generate Direct Benefit Transfer (DBT) claims on the IFMS portal within two months of the month of sale.
STEP 3 - Submit the claim along with the quality certificate to the Department of Fertilizers for payment.
Documents
The following documents were required to claim the market development support under the scheme.
- Letter intimating willingness to market organic fertilizers.
- Purchasing agreement for Fertilizer Marketing Companies.
- Annexure-I and Annexure-II duly filled.
- TIN certificate, PAN card and bank account details.
- GOBAR-Dhan portal registration certificate.
- Quality certificate (Proforma B2-MDA) and test reports.
- Claim proforma digitally signed by a Chartered Accountant, Statutory Auditor and the authorized officer.
- Supporting dispatch and sales records such as stock registers, gate passes and invoices.
References
- Market Development Assistance scheme page on Department of Fertilizers
- Official MDA Guidelines PDF
- GOBAR-Dhan unified portal
FAQ's
Which registration is required before applying?
Manufacturing units had to be registered on the unified GOBAR-Dhan portal of the Department of Drinking Water and Sanitation before claiming support.
Where should quality testing be conducted?
Testing had to be done at Government-notified laboratories or NABL-accredited private laboratories only.
Who can access the research and development funding?
The ₹360 crore research corpus is reserved for Central or State Research Institutes and non-private fertilizer cooperatives.
What types of fertilizers are covered?
The scheme supports Fermented Organic Manure, Liquid Fermented Organic Manure and enriched Phosphate Rich Organic Manure.
What is the deadline for submitting claims?
Claims must be generated and submitted through the IFMS portal within two months of the month of sale.
What information must be printed on the fertilizer bags?
The Maximum Retail Price, the applicable Market Development Assistance amount, product constituents, manufacturer details and shelf life must be printed on the bags.