How to make money from an organic fertilizer production business
Organic fertilizer production business is one of the best options, to start your business with minimum investment as it is known as the most important agricultural inputs. It also becomes the best option for those who are interested in starting agriculture or farming-related business. In this article, we present to you all the three profitable organic fertilizer manufacturing business ideas. What are we waiting for? let’s start to make money from the production of an organic fertilizer business.
An idea to make money from an organic fertilizer production
Organic fertilizer is made up of one or more unprocessed materials (organic) of a biological substance, based on FCO (Fertilizer Control Order) guidelines, there are three main types of organic fertilizer production systems where you can produce and sell in the market.
These systems are highly regulated by the Government of India, and therefore you need to follow the rules and have to maintain all the specifications and conditions in an accurate form. You also need to acquire some of the licenses and registration required for the organic fertilizer production business from the fertilizer department.
Organic fertilizer industry overview
Before starting organic fertilizer production business, you have to look for an overview of the organic fertilizer industry which gives you an idea about the organic fertilizer production in India. This makes you easy to choose which type of fertilizer production type that you want to start for the production in your organic fertilizer production plant. Before initiating the organic fertilizer manufacturing business, you need to do thorough research and study more about the minute detailing this will help you to prepare a perfect business plan for the organic fertilizer production plant.
Types of organic fertilizer manufacturing units in India
There are three main types of organic fertilizer production and these are listed below –
- City compost organic fertilizer
- Pressmud organic fertilizer, and
- Vermicompost organic fertilizer
These three types of organic fertilizer production are discussed below-
City compost organic fertilizer
You can start this manufacturing process of organic fertilizer by using city compost. This compost is from biodegradable organic matter production where you can get from the city waste. This will also help you to plan for the bio-diesel production business in India. In this process of manufacturing city compost organic fertilizer, you need to apply for the microbial conversion process.
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Microbial conversion contains bioorganic soil which is enriched with microbes that improve soil productivity indirectly. This helps the farmers and the crop to get immunity against pests, fungus, and many other harmful pests and yields more crops with plenty of nutrients in it. Microbial is a rich source of growth-promoting substances and has plenty of plant nutrients. Apart from all these the bacteria present in city compost organic fertilizer helps the crops in many ways, for example, it fixes atmospheric nitrogen to the crop which cannot be taken by the plants directly, this increases the productivity of the crop with better quality.
Pressmud organic fertilizer
Pressed organic fertilizer is a nutritious by-product of sugar cane from sugar industries. Press mud is a residual form of the sugarcane which is remained after the filtration. In this pressmud organic fertilizer production, the process is a simple thing and easy which includes the collection of the mud after getting separated from the clear sugar juice extraction. This mud is used to prepare pressmud organic fertilizer.
Vermicompost organic fertilizer
Vermicompost organic fertilizer is prepared by using the earthworms which digests certain wastes and produces fertilizer. In this process, the earthworms convert the crude form of organic matter into beneficial soil fertilizer. The earthworms ingest the biodegradable matter and produce the matter as excreta which are also called vermicast. Vermicompost organic fertilizer is the most efficient one where it supplies the nutrients and growth-enhancing hormones to plants.
Additionally, vermicompost organic fertilizer helps in improving the soil structure that increases the water-holding capacity of the soil and provides nutrients to the soil. In most of the organic farming, vermicompost is the essential and top-rated fertilizer which is used to grow vegetables, fruits, and other plant products.
Organic fertilizer production business plan to make good money
While starting any business you need to prepare a perfect business plan and it is one of the important steps. But in starting organic fertilizer manufacturing business, you need to plan first for business and different marketing strategies. This kind of business plan will help you to run your organic fertilizer business successfully. It requires many different strategies, which have to be applied in your production and marketing.
Organic fertilizer production license
These are the basic legal documents that you have to get registered or to acquire licenses. If you want to start your own organic fertilizer production business then you need to get the following registrations.
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Registration of firm: For starting any kind of small to medium scale organic fertilizer business you need to get registered for either a proprietorship or partnership firm.
Note: You need to make a note that these websites vary based on the place where you are willing to start your business.
GST registration: For any business, the GST number registration is compulsory as per the GST rule, tax identification number along with insurance certificate.
Trade license: You need to register your business name and for that, you need to register for a trade license from your local authorities.
MSME/SSI registration: Getting MSME/SSI registration will ensure that you are eligible for government schemes and facilities. So if you are willing to avail of the government subsidies or schemes regarding your business then you must have to apply for MSME/SSI registration. For details go through MSME Registration.
Trademark: You need to register your brand name with a trademark this helps you in protecting your brand in the future if you think to expand your business.
IEC code: If you are willing to export your product to other countries then you get the IEC code which is mandatory for export-import business for any kind of business.
Area required for fertilizer production business
While selecting the area for a fertilizer production business, you have to select the area which will be easily accessible and provided with facilities like water supply, drainage supply, and electricity supply. Make sure that the targeted market and raw material suppliers are near to near or easily accessible to the organic fertilizer production plant.
Organic fertilizer production can be started in organic farms and non-organic farms, but it is important to choose a location that will give you production and sales. The organic fertilizer production business can be established in 1000 sqft area.
Standard specifications of organic fertilizer production to make good money
According to the specifications of FCO (Fertilizer Control Order), you have to maintain certain specifications in initiating the organic fertilizer production business.
The below is a list of the specifications which you have to maintain in the organic fertilizer production business
- Moisture % by weight: 15.0-25.0
- Colour: Dark brown to black
- Odor: Absence of foul odor
- Particle size should be a minimum of 90% and the material has to be passed through 4.0 mm IS sieve
- Bulk density: (g/cm3) <1.0
- The total organic carbon % by weight: minimum 12.0
- The total Nitrogen (as N), % by weight: minimum 0.8
- The total Phosphates (as P2O5) % by weight: minimum 0.4
- Total Potash (as K2O) % by weight: minimum of 0.4
- C:N ratio should be 20:1
- pH should be 6.5 – 7.5
- Conductivity (as dsm-1), not more than 4.0
- Pathogens Nil
- Heavy metal content,
- Arsenic as (As2O3) – 10.00 mg/Kg
- Cadmium (as Cd) – 5.00 mg/Kg
- Chromium (as Cr) – 50.00 mg/Kg
- Copper (as Cu) – 300.00 mg/Kg
- Mercury (as Hg) – 0.15 mg/Kg
- Nickel (as Ni) – 50.00 mg/Kg
- Lead (as Pb) – 100.00 mg/Kg.
Expenditure or cost to start an organic fertilizer business
The cost of land or the rent value is = Rs. 1,00,000
The cost involved in compost pit construction is = Rs. 5,000
The cost for shed construction of compost pit is = Rs. 5,000
The cost involved in buying the earthworms = Rs. 1,000 per Kg
Labour charges = Rs. 5,000
The cost involved in dung fork, baskets, spades, shovels, buckets is = Rs. 3,000
The cost of the sieving mesh is = Rs. 1,000
The cost of the weighing machine is = Rs. 2,000
The packaging cost is = Rs. 3,000
The total cost involved in starting the organic fertilizer farming business is = Rs. 1,25,000.
How to sell organic fertilizer
Once you are done with the organic fertilizer production you need to build a plan for the promotional and sale strategy. For your organic fertilizer production business, you need to apply some marketing strategies and targeted market you can consider all of them to sell your organic fertilizer in the market.
How to sell fertilizer in the local market
Many farmers want to grow their plants due to the side effects of the chemical fertilizers, organic fertilizers have zero side effects so many farmers prefer to use them. This will become your main point to make your product popular.
How to sell organic fertilizer in the wholesale market
You can also sell your organic fertilizer in the wholesale market in bulk amount.
How to sell organic fertilizer online
You can advertise your organic fertilizer product using blogs and forums on social media.
B2B websites: You can register your business on B2B websites like – Alibaba, Indiamart, Tradeindia, Exportersindia if you wish to sell your product in bulk orders online.
B2C websites: You can also register your business on B2C websites like – Amazon, Flipkart, Snapdeal, to sell your product directly to the customer.
The market potential to make money for organic fertilizer business in India
The organic fertilizer is having huge demand in the market even the people who are interested in the kitchen garden, growing vegetables, and fruits in pots at home prefer to get the organic fertilizers. Not only these nowadays everyone is giving preference to the get the organic products so these farms will be your first target to sell your organic fertilizer as this will be the only product using in those farms.
The conclusion of organic fertilizer business in India
With the best business plan, This business has an excellent scope and very good profits and one can make quick money from an organic fertilizer business in India.