Digitally Empowering Tribal Farmers: Direct Fertiliser Subsidy Disbursal in Dadra and Nagar Haveli

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Project Details

Category: Entitlements
Project Title: Transfer of Fertiliser Subsidy through PFMS DBT Mode to Tribal Farmers of Dadra and Nagar Haveli
Department or District: Department of Agriculture, Dadra & Nagar Haveli
State: Dadra and Nagar Haveli and Daman and Diu
Start Date of the Project: 1st June 2022
Website: https://ddd.gov.in/agriculture-department/

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Tribe(s) that the Project Covers: Varli, Kokna, Kathodi, Nayka

Keywords: Subsidy, Tribal Farming, Tribal Agriculture, Digital Governance, Financial Systems

The Department of Agriculture of Dadra and Nagar Haveli and Daman and Diu initiated a major governance reform in agricultural subsidy disbursal, targeting tribal farmers through the creation of a tech-driven platform to deliver fertiliser subsidies via PFMS Direct Benefit Transfer (DBT) Mode. The project aimed to address systemic inefficiencies in the subsidy delivery chain and offer a transparent, accountable, and inclusive solution for tribal communities.

The Project

Previously, the Department procured fertilisers like Urea and DAP from Gujarat State Fertiliser & Chemicals Limited and distributed them on a 40% subsidy basis. This year, instead of physical distribution, the administration chose to transfer the subsidy directly into the bank accounts of farmers through PFMS. A new digital platform, FSIMS (Fertilizer Stock Information Management System), was developed for application intake and eligibility assessment. Around 1995 tribal farmers from 20 panchayats benefited in the pilot phase.

Problems that it Intends to Solve

There was a need to streamline the delivery of fertiliser subsidies to ensure timely access to inputs for kharif crops. The manual application and evaluation process led to frequent errors in subsidy calculation and delays in distribution. Instances of pilferage and the presence of fake or duplicate entries in beneficiary lists were common. These structural problems disproportionately affected tribal farmers dependent on time-sensitive cultivation cycles. Introducing a technology-led solution became imperative to increase efficiency, eliminate fraud, and support tribal farmers in real-time.

What Hindered its Introduction

The principal obstacle was the tight implementation timeline that coincided with the start of the kharif season. Developing the tech platform, training staff, and rolling out the system across all 20 panchayats in time posed a major challenge. Additionally, many field personnel lacked experience with digital tools, requiring capacity-building at the grassroots level. Early-stage technical glitches, such as errors while uploading the beneficiary list to the PFMS portal, also created delays. Overcoming these obstacles required a coordinated effort across departments and technical teams.

Process Followed for Implementation

The government partnered with NIC to develop the FSIMS platform and incorporated a rule-based algorithm aligned with the scheme’s subsidy calculation norms. Field personnel across all 20 panchayats were trained in application intake and document uploading, including Aadhar and land records. Once collected, applications were authenticated digitally to ensure eligibility. The final beneficiary list was uploaded to the PFMS platform. The PFMS portal processed the payments directly into the bank accounts of eligible farmers. After initial setbacks caused by technical issues, particularly a week-long delay in data validation, the process was streamlined through coordination with the PFMS team in Delhi.

The community’s role was significant during the data collection and application phase. Field staff at the panchayat level interacted directly with tribal farmers, explained the new process, and assisted in completing digital submissions. The acceptance and cooperation of farmers and panchayat-level officials contributed to the project’s success.

Solutions Implemented

A fully functional digital platform was created to replace manual form handling. Aadhar-based authentication was introduced to verify real identities, while land records were scanned and uploaded to confirm land ownership. The algorithm-enabled system ensured error-free calculation of subsidies. The approved beneficiary list was uploaded to PFMS, and direct payments were made into the farmers’ accounts. This represented a systemic overhaul from a goods-based model to a cash-transfer-based one, increasing both transparency and efficiency.

Details of the Coverage

The first phase of the project was rolled out in Dadra and Nagar Haveli across all 20 panchayats. Approximately 1995 tribal farmers benefited directly during the 2022 kharif season. The system was designed to be scalable and will later include additional provisions like automated fetching of land data, further reducing manual inputs.

Innovation and Unique Features

This was the first time fertiliser subsidies were transferred directly into the accounts of tribal farmers in the Union Territory. FSIMS allowed for centralised, digital processing of forms and reduced human error by incorporating algorithmic logic for subsidy calculations. Aadhar authentication and land record uploads replaced unreliable manual verification. The platform was designed for low digital literacy levels among field staff, with simple data entry features and clear workflows. The project also laid the groundwork for future integration with other welfare schemes by creating a verified digital farmer database.

• Co-creation: How tribal knowledge or leadership shaped the solution
  • The project design took into account inputs from local field personnel and community members who highlighted practical challenges in implementing digital solutions. Their feedback was incorporated into the platform’s interface and training modules, making the solution community-aware and responsive.
• Any adaptations: How the project evolved during implementation
  • During implementation, several adjustments were made. For example, given the short timeline, scanned documents were accepted as temporary verification instead of dynamic digital linking. The platform is now being upgraded to integrate directly with the Avanika land record system, eliminating the need for uploads in the future. Early delays on the PFMS portal were addressed with backend support and liaison from central technical teams.

Challenges Faced Before Implementation

The biggest internal challenge was time—developing, testing, and deploying the FSIMS platform before the sowing season was extremely demanding. External challenges included limited technical capacity among field staff and low digital penetration in tribal areas. Additional difficulties included the initial setup of the PFMS scheme on the national portal and ensuring accurate Aadhaar authentication.

NIC and PFMS worked closely with the UT administration to develop the system quickly. Capacity-building sessions were conducted for field staff, and simplified data entry protocols were introduced. Errors encountered during the first upload on the PFMS portal were addressed within seven days through technical support from Delhi.

Challenges Faced During Implementation

Once launched, the main internal challenge was ensuring accuracy in document uploading and preventing delays due to technical inconsistencies. Externally, some farmers faced difficulties understanding the new process. Additionally, a technical error in the PFMS portal halted disbursement temporarily.

Continuous support was extended to field staff through NIC. The portal was designed with user-friendly features to ease navigation. Public awareness efforts helped farmers understand and trust the digital process. Coordination with PFMS officials in Delhi helped resolve backend errors swiftly.

Outcomes

The project yielded measurable benefits. Subsidy transfer was timely, ensuring that farmers could buy fertiliser before the kharif crop sowing window closed. The authentication system successfully eliminated fake and duplicate applications. Financial savings were achieved by removing the need to stock and physically distribute fertilisers. A reliable digital database of tribal farmers has been established for future welfare schemes. From a qualitative standpoint, the project enhanced trust in government systems and ensured transparency. Monitoring was carried out through real-time tracking on FSIMS and PFMS platforms.

A total of 1995 tribal farmers received the subsidy directly in their bank accounts during the initial rollout. The project ensured full coverage of all 20 panchayats in the UT.

Replicability / Scalability / Sustainability

The project’s design is inherently scalable. It can be replicated in other Union Territories and states with minimal customisation. The next phase involves dynamic integration with the Avanika digital land record system, eliminating manual uploads. Financially, the model is sustainable as it reduces costs associated with fertiliser procurement and storage. Its success has also created a viable foundation for applying similar DBT models for other agricultural or welfare schemes.

Presentation

Video