According to the news reported by the Press Trust of India, India’s think tank is in the process of starting a research that would address the issues of the current fertilizer subsidy payments and the role of blockchain technology as a possible solution.
The initial step, that is, the statement of intent (SOI) has been confirmed, in which the National Institute of Transforming India (NITI), India’s policy makers, and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC), an established fertilizer enterprise, have written.
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.
According to the Managing Director of GNFC, Rajiv Gupta, the entirety of this research can promote efficiency, while ensuring that “subsidy transfer would be automated and in real time.”
To build up on the initial stages that have been established, CCN reported that India’s Soil Health Card will be joining the efforts. This measure was taken primarily to help farmers understand which fertilizers are efficient and how to select the most appropriate ones based on soil health and nutrients needed.
Fortunately, think tank’s involvement in blockchain research is not a first, as the state-run research center has been considering blockchain for ameliorating several sectors including healthcare and pharmaceuticals to name the least. Think tank has been looking into preventing fraudulent activities with the use of blockchain technology as well.
As for the blockchain-based fertilizer subsidy compensation, a whitepaper is currently under progress and is set for release sometime this month.