Blog Description

Setting Up of Organic Fertilizers Manufacturing Plant

Chemicals | Jul, 2021

With the advent of green revolution in 1960s, use of High Yielding Variety (HYV) seeds coupled with efficient irrigation and use of chemical fertilizers boosted the agricultural productivity, which further boosted agricultural production worldwide, especially in the developing countries. Increased crop yield also affected the fertility of the land attributable to the excessive use of fertilizers. Excessive use of fertilizers elevates the acidity of soil. Presence of excess nitrogen in the soil reduces plant diversity by enhancing the growth of plants. Excess nitrogen fixation augments greenhouse effect, diminishes stratospheric ozone, promotes smog, contaminates drinking water, acidifies rain, eutrophics bays and estuaries, and stresses ecosystems. Hence, there arises the need for shifting to an eco-friendly alternative which can enhance the yield and maintain soil health simultaneously. Here comes the role of organic fertilizers, which can overcome the shortcomings of the conventional fertilizers.

Organic fertilizers serve as a supplement to the traditionally used chemical fertilizers. These are carbon-based compounds obtained by converting organic substances into a usable fertilizer by modified aerobic-cum-anaerobic composting. These fertilizers improve the soil fertility, water retention capabilities/capacities and replenish the nutrients in the soil. Rising demand for organic food and increasing awareness about the consequences of using chemical fertilizers are boosting the organic fertilizers market.

Advantages of Using Organic Fertilizers


Organic Fertilizers & Its Major Nutrients to the Soil

Organic fertilizers contain natural chemical elements that assist the growth of plant as these fertilizers possess a lot of macro and micronutrients.

The Pre-requisites

With the increasing standard of living and surging popularity of organic food, majority of farmers are aiming to improve the market attractiveness of their yield by using organic fertilizers. As organic fertilizer is gaining momentum, key players operating in the chemical industry are focusing on capitalizing this idea. However, before setting up an organic fertilizer manufacturing plant, many factors are needed to be taken into consideration.

The most important pre-requisite involves a lot of research and study about the business and its feasibility. After all the research and analysis, there arises a need for preparing a comprehensive business plan. The next step to set up an organic fertilizer manufacturing plant is the registration of the business with the authority. Starting an organic fertilizer plant can be capital intensive but if it is well located then it can be a money-spinning business. The proposed site should be close to the raw materials supply source, and there should be adequate water & power supply and transportation facilities. The site should not be in proximity to residential areas. Moreover, attention to packaging and marketing strategies should be given. Finally, the buying and installation of equipment should be done, besides appointment of labor.

Overview of Organic Fertilizers Production

Raw Material & Production Process

The raw materials for producing organic fertilizers are plentiful and extensive such as animal manure (chicken manure, pig manure, sheep manure, cow dung, horse manure, rabbit excrement), industrial waste (vinasse, vinegar residue, cassava dregs, sugar residue, biogas waste, furfural residue), agricultural waste (crop straw, soybean meal, cottonseed meal), household kitchen waste, sludge (municipal sludge, river sludge, filter mud) and so on. The easy availability of a large amount of raw materials makes organic fertilizer business popular and successful.

Specifications for Organic Fertilizer

Machinery Required

After selection and pre-treatment of raw materials, the very first step in production process of organic fertilizers is preparation of compost. The Self-Propelled Compost Turner is used for the preparation of compost. The major function of this compost turner is to bring about the turning and mixing of organic materials, thereby, accelerating the whole fermentation process. After fermentation, the organic material needs to be crushed and this step takes place inside a high moisture fertilizer crusher machine. This machine can crush materials with high moisture content. After crushing and mixing the next step is granulating, for which a New Type Organic Fertilizer Granulator. This machine is used for granulation of the raw materials used for preparing the organic fertilizer. Fertilizer granules thus produced have high organic content and their particle size and uniformity can be adjusted by this granulator. After granulation, there arises the need for screening these granules. The screening is done using a Fertilizer Screening Machine, which separates standard fertilizer granules from the unqualified fertilizer pellets. The organic fertilizer is prepared till this step and needs to be packed. The packing of fertilizer is done using the automatic packaging machine. This machine can pack fertilizer granules 2-50kg per bag.

Project Timeline


The major problem that arises during organic fertilizers production is dust pollution. Unloading of raw materials into the warehouse and transportation to different workshops, results in a lot of dust pollution. Additionally, during compost making process while mixing and crushing the raw materials as well as granulation step, a lot of dust is added to the environment.

Looking at the entrepreneur’s perspective, the major threats one can face includes the presence of a well-established market in North America which is supplying its products worldwide. Secondly, there is no reliable data related to use of organic fertilizers. The farmers are also facing challenges despite the government subsidies and incentives. The major challenged faced by the farmers is cost. The organic system of farming is far more expensive than the one done using chemical fertilizers. Therefore, it has not completely gained traction irrespective of so many advantages. Less availability of adequate quantity and quality of raw material fulfilling the required specifications is also a major challenge for organic fertilizers market.


Fertilizer is one of the major inputs in the agricultural production. Green Revolution was a combination of increasing agriculture produce and extensive use of chemical fertilizers. The chemical fertilizers boosted the agriculture produce but on the other hand generated a lot of second-generation problems. These problems mainly included loss of soil fertility and nutrients and increase in the number of barren lands. These chemicals also entered the food chain and serious consequences of that are being noticed till date. Heavy metals present inside the chemical fertilizers can affect the vital organs and cause several chronic diseases such as cancer, kidney diseases, nervous disorders, among others. Due to this a paradigm shift towards the use of organic methods of farming is witnessed. The use of organic fertilizers not only rejuvenated the soil fertility but also increased the produce. Organic fertilizers have gained traction with the support of government policies and increasing awareness amongst the farmers. The organic sector is changing at an unprecedented pace, with new definitions, policies, certifications, products.  

According to TechSci Research report, “India Plant Growth Regulators (PGRs) Market By Type (Auxin, Gibberellin, Cytokinin, Others), By Crop Type (Fruits & Vegetables, Cereals & Grains, Oilseeds & Pulses, Turf & Ornamentals), By Function (Stimulators, Promotors, Inhibitors, Retardants), By Formulation (Water-Dispersible & Water-Soluble Granules, Solutions, Wettable Powders, Tablets), By Company, By Region, Forecast & Opportunities, 2025”, Along with fertilizers plant growth regulators are widely used for sustaining the lives of plants thereby supporting the Indian agricultural industry. India plant growth regulators market is anticipated to grow with an impressive CAGR in the upcoming five years on the grounds of need to feed the ever growing population of the country. To feed an overflowing population of more than 1.3 billion in the current year, the need to increase the crop yield and further save the harvest from any damages is demanding the use of plant growth regulators and thus supporting the growth of the market in the future five year forecast. The sudden outbreak of the pandemic due to widespread viral infection of COVID-19 is also one of the major factors behind the strained growth of the market. Many agrochemical factories and manufacturing units were observing the lockdown and no more production was possible. Although, steady growth is expected as the country is well fighting off the consequences of the pandemic and the economy of the country is stabilizing a bit.

According to another report by TechSci Research, “Global Organic Food Market By Product Type (Fruits & Vegetables; Meat, Poultry & Dairy; Processed Food and Others), By Distribution Channel (Store-based Retail and Non-Store-based Retail), By Region, Competition, Forecast & Opportunities, 2026”, the global organic food market stood at $ 129 billion in 2019, and is projected to grow at a CAGR of 11%, in value terms, by 2022. Growing awareness regarding health benefits of organic food consumption, rising per capita spending on organic food products and increasing health concerns due to growing number of chemical poisoning cases are expected to drive global organic food market in the coming years. In addition, continuing product innovations and aggressive marketing strategies adopted by major players and online retailers would positively influence the global organic food market during forecast period. Fruits and vegetables market is expected to experience maximum growth due to increased health concerns due to the pandemic as well as the maximum number of consumers in the market. Due to the unique advantages of the organic food such as chemical and pesticide-free, eco-friendly, and very healthier compared to inorganic food the market is expected to grow at the estimated CAGR in the forecast period.

Key Players

Majorly, the organic fertilizers market has two segments the horticulture farmers and nurseries. Some of the major players operating in the global organic fertilizer market are The Scotts Miracle-Gro Company, Italpollina S.p.a, Coromandel International Limited, BioStar Systems, LLC, Midwestern BioAg, Inc., California Organic Fertilizers, Inc., Krishak Bharati Cooperative Ltd (KRIBHCO), National Fertilizers Limited, Fertikal N.V., and Sustane Natural Fertilizer, Inc., among others.

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