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Blockchain in Agriculture: NITI Aayog to Implement Fertilizer Subsidy


NITI Aayog and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) have signed a Statement of Intent (SOI) to work together towards implementing a Proof-of-Concept (PoC) application using Blockchain Technology for fertilizer subsidy management.

They will jointly develop the use case, under take research, interact with multiple stakeholders, develop Blockchain solutions, exchange learnings, organize forums, and disseminate learnings across their networks. Learnings, insights and outcomes of the PoC will enable NITI Aayog to suggest policy recommendations and actions in strengthening the subsidy mechanism, making it more transparent and immune to leakages.

As for the research underway, the parties involved will be assessing whether it will be possible to use blockchain technology to protect subsidy systems from theft and leaks and to ultimately increase transparency. By addressing these two aspects, think tank believes that compensating farmers will be far more efficient, without the extraneous validation processes.

For the specs of the research, it appears that the two parties involved will be working together to bring a Proof-of-Concept application, along with the use of smart contracts to stimulate immediate agreements along with precise settlements.

Managing Director of GNFC, Rajiv Guptasaid,

“With the adoption of blockchain technology, it is expected that distribution will become efficient and subsidy transfer would be automated and in real time,” 

The turnaround time for subsidy distribution will be reduced to three to four weeks, there won’t be any need for multiple authorization and movement of documents, and fertilizer sales and distribution will become efficient, benefiting farmers, Gupta said.

The system will also be integrated with soil card in the next phase, which will be useful in advising farmers to use a particular type of fertilizer based on soil heath, he said.


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