EFCN Market Catalyst

GDI South Asia Private Limited

EFCN Market Catalyst

Scaling green fertilizer alternatives to improve farmer livelihoods, soil health, and reduce agricultural emissions across the value chain

Mumbai, Maharashtra, India

IND

Hybrid of for-profit and nonprofit

Agriculture supports 2.5 billion people globally, including 46% of Indians, and is the largest income source for poor rural households.. However, it’s also a major contributor to greenhouse gas (GHG) emissions and environmental degradation. In India alone, the sector accounts for ~3.7% of total GHG emissions due to heavy reliance on chemical fertilizers like DAP, Urea, and MoP. These fertilizers degrade soil health, pollute water bodies, increase energy use, and harm long-term crop productivity. Despite efforts to promote organic or natural farming, adoption remains low due to poor economics, unstandardized nutrient content, increased farmer effort of application and lack of subsidies. Over 97 million hectares of Indian farmland are degraded. Moreover in 2023, the government spends ~$32.2B annually on fertilizer subsidies and ~$10-15B on imports, making the system economically and environmentally unsustainable. The problem spans across the entire agricultural value chain—from manufacturing to usage—and affects farmer incomes, food security, and climate goals. There is an urgent need for alternatives that match the effectiveness of chemical fertilizers, reduce environmental harm, and create viable economic models for farmers, the government and all other supply chain actors.

EFCN Market Catalyst is a market-launching initiative to scale environmentally friendly alternatives to chemical fertilizers in India and beyond. Our mission is to build a robust ecosystem for green fertilizers—starting with Naturally Available Phosphate (NAP), a viable replacement for DAP. The Catalyst supports product innovation, field and lab testing, policy advocacy, and commercial adoption. We work with innovators, academic partners, manufacturers, farmer networks/FPOs, and government agencies to identify high-potential green fertilizer products, validate effectiveness, and accelerate adoption through trials, training, advocacy, and partnerships. NAP is produced by blending rock phosphate with farmyard manure or biogas slurry and phosphate-solubilizing bacteria, using a low-energy, chemical-free process. It is suitable for both small and industrial-scale manufacturing, and can be pelletized for ease of use. NAP improves soil fertility, increases phosphorus bio-availability, reduces GHG emissions and water pollution, and enhances long-term productivity. It can also be made using lower-grade local rock phosphate, reducing import dependence. Importantly, unsubsidized NAP is expected to cost equal to or less than subsidized DAP/SSP, improving farmer economics. By scaling NAP, EFCN Market Catalyst drives environmental sustainability, subsidy reform, and improved farmer livelihoods—while codifying go-to-market pathways for future green fertilizer innovations like PDM and Green Ammonia.

Our solution primarily serves smallholder farmers in India and other developing regions who rely on chemical fertilizers but face declining soil health, rising costs, and low returns. These farmers are often trapped in a cycle of subsidy dependence, limited input choices, and degraded land. EFCN Market Catalyst addresses their needs by enabling access to environmentally friendly, cost-effective crop nutrition solutions like NAP that maintain yields while improving soil health and long-term productivity. Early trials show NAP delivers equivalent yields to DAP/SSP, improves produce quality, softens soil, reduces diesel and farm yard manure use, and enhances farm economics. Beyond farmers, the solution benefits Farmer Producer Organizations (FPOs) and local distributors through improved margin structures (up to 15% vs. the current 1–2%) and stronger roles in input distribution. Government agencies benefit from potential savings on phosphate fertilizer subsidies (~$7.4B annually in India), lower foreign exchange outflows, and better alignment with climate goals. The broader agricultural ecosystem gains from reduced market distortions and a pipeline of green product opportunities. Ultimately, EFCN Market Catalyst boosts farmer resilience, strengthens rural economies, and drives a more sustainable and inclusive agricultural system through its product launches.