A Framework for Direct Benefit Transfer for Fertilizer Distribution and Payment Using Blockchain

Direct Benefit Transfer (DBT) involves transferring the subsidy amount and other benefits directly to the beneficiary’s bank accounts instead of providing it through government offices. This DBT Transfer means the government makes the payment to the beneficiary account directly without having any intervention from one or more third parties. Direct Benefit Transfer aims to make the beneficiary system transparent and terminate fraudulent activities related to beneficiary schemes launched by the government like distribution of funds sponsored by the government such as subsidies, scholarships, etc. However, for a large country having a higher population like India, it is important to identify the correct beneficiary receiving the benefit. However, in the current DBT system, in the agriculture sector, beneficiaries are not directly interacting with the government. In order to ensure transparency, security, and reliability, a prototype of DBT system has been proposed based on blockchain technology. The proposed system incentivizes Retailer/Wholesaler/Manufacturer through direct account transfer mechanism and all transactions are recorded in the blockchain which will help in controlling malpractices, leakage of funds, and will ensure transparency in the system. Only for the farmer’s portion cash transaction has been allowed as they are not literate enough to use the digital system.