Library Publications Assessment of AeFDS (Aadhaar enabled Fertilizer Distribution System) Pilot

Assessment of AeFDS (Aadhaar enabled Fertilizer Distribution System) Pilot

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Fertiliser subsidy is the second largest subsidy, after food, provided by the Government of India. In the Union Budget 2016-17, the Indian government proposed to bring fertiliser subsidy under the ambit of Direct Benefit Transfer (DBT) programme to streamline its distribution.The government announced pilots for Aadhaar enabled Fertilizer Distribution System (AeFDS) on (28th March, 2016) in 19 districts across India. AeFDS is a modified subsidy payment system under DBT scheme, where fertiliser companies will be paid subsidy only after retailers have sold fertiliser to farmers/buyersthrough successful Aadhaar authentication via Point of Sale (PoS) machines. On a request from National Institute for Transforming India (NITI) Aayog, MicroSave conducted a dipstick evaluation in six districts (Rangareddy, Pali, Una, Hoshangabad, Krishna, and West Godavari) where AeFDS pilot was running live. MicroSave assessed the aggregate responses from 1,734 farmers and 200 retailers across six districts and also conducted in-depth interactions with the concerned government officials and district consultants.The report elaborates key findings of the study on three major aspects —Farmer Readiness, Retailer Readiness, and Transaction Status. It also explains best practices being followed by districts based on indigenous wisdom, and provides actionable solutions for smooth implementation of AeFDS initiative. 

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