Cash for crops: MSC’s support to DBT-F’s implementation

• Dec 22, 2023
• 1 min

MSC studied the DBT in Fertilizer (DBT-F) to improve implementation, which led to efficiency, administrative gains, and financial savings. MSC recommended measures that included the development of a device-agnostic application, deployment of a call center, and modifications to the POS application to generate transaction receipts in local languages.

DBT in Fertilizer (DBT-F) is a modified subsidy payment system that remits subsidies to fertilizer companies only after retailers sell fertilizer to farmers through Aadhaar-based authentication. The NITI Aayog and the Department of Fertilizers (DoF) in India engaged MSC to study the program and provide actionable solutions to improve its implementation. MSC provided technical support to conceptualize and implement a set of DBT pre-pilots in two districts of Andhra Pradesh followed by a pilot in 14 districts. MSC also provided implementation and design support at each stage through concurrent evaluations.

MSC’s work comprised a mixed-methods study design, which included qualitative and quantitative research with 12,000 retailers and farmers. MSC recommended measures, such as developing a device-agnostic application, deploying a centralized call center, and altering the POS application to generate transaction receipts in local languages. MSC submitted an approach note to the Ministry of Chemicals and Fertilizers to transition directly from in-kind subsidy to cash transfer subsidy to farmers’ accounts.

MSC’s intervention led to the nationwide implementation of DBT-F in a record time of two years. This led to efficiency, administrative gains, and financial savings.

The Bill & Melinda Gates Foundation commissioned the project.