Indian Govt. Think Tank to Trial Blockchain for Fertilizer Subsidy Payments

India NITI BlockchainIndia’s most influential state-run think tank is set to undertake a research project to explore the use of blockchain technology for fertilizer subsidy disbursements to farmers.

The National Institute of Transforming India (NITI), the Indian government’s primary policy-making body, has entered a statement of intent (SOI) with the fertilizer giant Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) to develop a blockchain solution for subsidy management in the fertilizer industry. As reported by the Press Trust of India, the think tank also intends to outline policy recommendations to turn current subsidy mechanisms more immune to data leaks while improving transparency based on the outcome of the research.

Subsidy distribution in payments to farmers will become more streamlined without the need for documents or multiple points of authorization.

Specifically, the terms of the SOI will see the two organizations jointly research and develop a proof-of-concept (PoC) application to improve the efficiency of the current multilayer, multi-agency distribution chain of what is a $10 billion domestic fertilizer subsidy industry. The blockchain solution will also be powered by smart contracts to enable instant, accurate reconciliation of transactions without the need for human oversight between multiple parties.

GNFC managing director Rajiv Gupta said of the joint-research project:

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

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