How to Make Money from an Organic Compost

Introduction make money from an organic compost business

Hello beginners, did you ever think of a business where you can convert the organic waste produced into a money-making business? Yes, you can indeed convert the organic waste into compost which has huge demand in the organic farming market. This business not only produces useful end product i.e., but compost it also helps in cleaning the environment from recyclable organic materials.

Ideas to start and make money from the organic compost business

Waste management is the biggest challenge faced by humans today. This would be the main point to start the organic compost business, which will give you a chance to solve the problem and earn profits in turn. The composting for beginners would create confusion but never get worried about it. It is a simple business to start with.

You can even prove the common saying ‘one man’s trash is another man’s treasure’, by starting this business. This has come true when it comes to waste management. In this article, you will get all the information about starting a commercial composting business, which will turn into a profitable business venture. Compost business start-up in India would be the greatest business as it helps the organic farmers to get the organic compost at a cheaper price. There are several composting industries in India, but the price of the end product is so high.

Research about an organic waste

At first, you need to research and understand how to collect organic waste which includes leaves, food waste, grass cuttings, and other forms of organic waste material, which turn them into rich, natural organic compost. This is a very simple process where organic waste is converted into compost by bacterial conversation.

Everything will decompose on its own time, but there are few things that you need to speed up to strengthen your end product. Getting a grip on the basics is a good start and will only help you down the line. You also need to know that organic materials are nutrient-rich, and the end product can be used as a plant fertilizer, where the compost improves the soil fertility.

An organic compost business plan to make huge money

Before thinking to start about this business you need to design a perfect organic composting business plan. This will help you to find all the major requirements to start the business.

License, permissions, and registrations to start an organic compost business

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Marine algae compost.
Marine algae compost.

Below is the list of permissions, license, and registrations required to start the organic compost business

  • First, you need to take the fertilizer license.
  • You also need to get the registration with the National center of organic farming (NCOF), Department of Agriculture, MoA, GoI, under bio-fertilizers, and organic fertilizers which are covered in fertilizer (Control) Order, 1985.
  • Permission from the state government for starting the compost business in the land.
  • Registration under Companies Act is mandatory
  • Good Manufacturing Practice (for production of sterile fermentation products)
  • You need to get registration from ISO/ BIS for the prevention of cross-contamination of production culture and quality control to meet the international standards.
  • Udyog Aadhar or MSME registration
  • SSI registration
  • NOC from State Pollution Control Board (PCB)
  • Trade license
  • GST registration
  • EIC registration which is required for exporting your product.
  • Permissions and license as per your state composting regulations
  • State Law/Legislation Code

Sources for collection of organic wastes

To create proper compost that could incline your customers and which you can sell at the market, you will require a regular supply of organic waste materials. Cafes, restaurants, and other businesses in the area will be glad to allow you to lend their organic waste away without any cost since this decreases their waste management costs. Approach to people, network, and tell them why you need and the purpose of it. Some of them could even pay you to lend their waste easily in the waste management business.

Now, you will have three options to collect organic waste:

  • First, you could reach to farmers and gardeners in your local region and inform them about the delivery of fresh, organic compost to them. They can utilize for soil maintenance and in some cases, as a fertilizer.
  • Second, you could have a stand at a farmers market or gardening fair. Many gardening enthusiasts employ compost to have their plants with the extra nutrients as they must recondition soil. This is another target market for you and you can showcase the product out in front of them.
  • Finally, you may arrange a small e-commerce store by selling online. This lends you with a much wider customer base but will involve costs like shipping and other things. In case you have a sound capital, with the desire to scale up, it can be a great idea after success at the local level.

If you want to grow further, nobody will turn down the proposal of a free lawn cutting service, where you place the grass you cut. You must have the idea that it will consume time which is much more as compared to collect already present organic refuse.

The process of converting organic waste to compost

Composting is a way to transform solid waste so that microorganisms will break down the organic material that aids the natural process of decay up to a position where it can be safely handled, stored, and used again for the environment. There are different types of composting process. The composting procedure needs organic waste like leaves, fruit, grass, and vegetable scraps, soil (which contains microorganisms), water, and oxygen. The microorganisms feed on organic wastes and transform its simplest components by the breakdown. The humus (finished compost) they produce is highly rich with fiber and inorganic nutrients, like potassium, phosphorus, and nitrogen, and this makes a natural fertilizer that is favorable to the environment. For this humus, the microorganisms require water, like other living things, along with oxygen for aerobic respiration. The microorganisms use this oxygen when you turn over the compost every day or two. In the respiration process, they generate heat (temperatures around 150 degrees Fahrenheit or 66 degrees Celsius) with carbon dioxide. If you frequently water and turn the compost in your compost set-up, the compost can entirely decompose in just 2-3 weeks, which could take months to decompose if not done regularly.

Apart from regular turning with periodic watering (to keep the mixture moist but not too wet), your compost must have sufficient soil (to have plentiful microorganisms) and the proper ratio of carbon to nitrogen (around 30:1) is maintained. The smaller the waste pieces in your pile, the faster will be the breakdown.

The microbes, or arrangement of organisms, within your compost pile aids, to enhance the efficiency of the breakdown process. The food web includes fungi and bacteria that decompose the organic matter in your pile; protozoa, nematodes (small worms), and mites that feed on the fungi and bacteria; and insects, like beetles, millipedes, and sowbugs which feed on the protozoa, nematodes, and mites.

How to set-up the compost farm

It is important to be aware of relevant health, safety, and environmental laws in your region, as some may be there regarding the closeness of a compost farm to residential areas and industrial premises. The in-vessel composting system cost would be a bit higher than the normal cost setups. But it reduces the land costs and also the foul pungent smell.

Once you are aware of it, you will need:

  • Dig pits or skips to dump the waste in and allow it to decompose.
  • Things such as shovels, masks, gloves, and bags.
  • Production regions where you can place the compost, seal the bags, and label your compost. You may pick an option like fabric buildings as the place in which your compost farm’s activities take place.
  • A delivery vehicle such as a truck. This can be used to load the waste at source, too, and for saving the costs.

Once the organic compost is done, package it, get it labeled. Now it is perfect to sell it and gain returns.

Investment or the cost to start an organic compost business in India

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the cost to start an organic compost business.
the cost to start an organic compost business.

The cost of land for starting the business is Rs. 2,00,000

The cost of acquiring all the licenses required is Rs. 50,000

The cost of setting up the compost pits is Rs. 1,00,000

The cost of collecting organic wastes is Rs. 2,00,000

The cost of transportation is Rs. 50,000

Salaries for the employees is Rs. 1,00,000

The cost of packaging is Rs. 20,000

Miscellaneous costs are Rs. 30,000

The total cost of starting an organic compost business is Rs. 7,50,000 to start the business on a medium scale.

Profit margin or how much money you can make from the organic compost business in India

As the growth of organic farming has increased to a higher extent the requirement for organic fertilizers, organic compost, etc. has greater demand in the agriculture market. This has increased the production of organic fertilizers, where it became a boom to start the organic fertilizer business. One among them is organic compost business. As it is an easy process to start the business and doesn’t require much investment, the profits are also high where you can get a maximum of 45 to 50% of profits.

The conclusion to start and make money from an organic compost business

Thus you can consider this business as simple, easy to implement a business idea that you can operate on a small or a large scale, and which you can initiate almost anyplace, through space which you have previously. You need to make your product the best organic compost to buy in the market. The major thing about this business is that it’s not only profitable; you can eliminate rubbish that serves as a good thing for your community!

As the need for organic, natural agricultural products increases and as effective waste management turns out to be a critical issue for humans, there’s never been a greater time to convert waste products into a money-making beneficial thing for them.

The conclusion to start and make money from an organic compost business 

As organic farming growing across the globe, the demand of organic compost is very high and you make excellent profits in this business.


  1. This is very useful and informative. I would like to start doing this slowly by experimenting first and build my confidence.

  2. Great Info .Worth a try to make this earth a beautiful place. From long time i was also giving a lot of thought process , regarding different parameters & dimensions to get hold on the idea. This Blog has cleared it all. Awesome


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