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Presented in FAI Management Development Programme 14-17 April,2011 (Organized by Fertilizer Association of India)
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4/20/2011
Fertilizer Promotion
Role of chemical fertilizers has been of great significance in the success of Indias green revolution and consequent selfreliance in food-grain production. Hence, Government of India has been consistently pursuing policies conducive to increased availability and consumption of fertilizers in the country. As of now, the annual consumption of fertilizers in nutrient terms (N, P & K) has reached to 249.09 lakh MT which is 128.60 Kg/Hectare during 2008-09. In order to ensure optimum use of fertilizers the related aspects of concern viz. local soil fertility, cropping pattern, farmers holding of land, area being cultivated by a particular farmer, irrigation system, whether conditions, finance required, crop marketing arrangement, ROI for the investor, etc are to be looked into.
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Fertilizer Availability
As the mandate of the Govt. to ensure the availability of the fertilizer in all parts of the country, the govt. also monitors the distribution and movement of the fertilizers. For this, the requirements are collected from the states, and fertilizer companies are directed to dispatch the material accordingly. The supply being monitored upto the district level is now proposed to be tracked upto the village level in order to ensure efficient and wide spread distribution across the country.
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4/20/2011
Fertilizer Affordability
In order to keep the prices of fertilizers low, so that farmers are able to buy it easily as per his requirement, the cost of fertilizers is subsidized by the Government, Urea being the cheapest fertilizer due to heavy subsidies has been applied more in quantities by the farmers leading to imbalance in required nutrients for the plants, resulting stagnant or decreased production at the farms and also degradation of soil fertility. In order to overcome this issue, Government has come out with new fertilizer policy, called Nutrient based Subsidy Scheme (NBS) effective from (1.04.2010), wherein the subsidy has been fixed on nutrient content rather than on production cost. Further, the government has planned to shift subsidy payment from Manufacturer to Farmer in a phased manner in order to ensure availability of fertilizers at farmgate.
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Manufacturers/Importers Urea DAP & Complex SSP MoP : 30 + deficit qty imported through canalizing agency : 26 + deficit qty imported canalizing agency
: 72 : Imported through canalizing 6 agency Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
4/20/2011
Stakeholders in Fertilizers
D/o Fertilizers, M/o Chemicals & Fertilizer, Ministry of Agriculture Planning Commission PMO, Railways, Surface Transport, Shipping, Ministry of Power, Coal, Petroleum & Natural Gas State Governments and District Administration Fertilizer Companies/Plants Public as well as Private Sector Fertilizer Cooperatives Fertilizer Association of India Fertilizers Dealers/Retailers Banks Ports Farmers
Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
4/20/2011
Retailer
Warehouse
Price Supply Plan
Manufacturer/ Importer
Subsidy Payment
DOF
Subsidy Budget
DAC
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Initiatives to Implement Direct Subsidy to Farmers Secretary (Fertilizers) Vide letter NO. C-13/Dir(FA)/09 dated 7th January, 2010 desired from DG(NIC) a probable course of action for executing the project Enterprise Wide solution for Fertilizer Management with in-turn aim of subsidy disbursement at the retailer / farmer level. Subsequently, the requirements were discussed and a proposal on Enterprise Wide solution for Fertilizer Management was submitted by NIC to Secretary (Fertilizers) on 15-7-2010.
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4/20/2011
Discussions in High Power Committee on Disbursement of Subsidies After a series of deliberations, a phased approach was decided by DOF and finally discussed in High Power Committee (HPC) under chairman ship of Honble Shri Nandan Nilekane. NIC , as IT project executor made the presentations on mFMS : mobile based Fertilizer Monitoring System ( phase-I of the project) to HPC during March, 2011.
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Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
4/20/2011
Extension of activities of Phase I,II Use of Smart Card by the farmer Registering individual sales into the system Purchase at market price The subsidy will be disbursed directly to the farmer on actual fertilizer purchases Subsidy released to farmers account by the designated bank. Online and Real time banking network to be in place for subsidy management The funds will be provided by Govt. of India to the Nodal Bank of the designated bank.
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Statement of Purpose
End to End solution for Fertilizer Management for central, state and local Administration ICT Solution for disbursement of fertilizer subsidy under NBS based on last point sale. Shifting of subsidy payment from Manufacturer to End User in phased manner Track movement of the fertilizer up to the farm gate. A single platform serving all the skate holders
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Scope
1. Fertilizer demand assessment at block / district/ state level 2. Preparation of supply plan and movement plan 3. Institutionalizing Smart Cards for authentication, POS as transaction instruments 4. Monitoring of Fertilizer movement from plants / ports up to retailer level 5. Monitoring of Sales by the retailer to the farmer and stock at retailer level 6. Fixation of Nutrient based subsidy rates (N,P,K,S, Micro nutrients) 7. Payment of Freight subsidy and Nutrient Subsidy to fertilizer companies when fertilizer is received at retailer level. 8. Providing fertilizer related information to farmers (NeGP) 9. Integration with other related systems like Soil Health Card, Land records, Irrigation etc 10.Leverage the transaction data for data warehousing, Mining and data analytics 11.Integrated platform to promote value added services
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Objectives
Work out a Mechanism for Implementation of Direct Subsidy to consumer Assessing requirements, Planning and arranging for production and imports Ensure Reasonable level of self sufficiency in the domestic production Monitor allocation & supply linkage for movement and distribution Efficient Disbursement and management of subsidy Movement and distribution of fertilizers in coordination with States Measures to curb Fertilizer hoarding, black marketing, pilferage Bringing service orientation to the Agri Input programs Increasing effectiveness of government service delivery Automation of Financial concessions / subsidy for controlled & decontrolled Fertilizers Fulfill demand of fertilizer requirement across the states
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Facilitation Systems
Fertilizer Portal
MIS Reports
Monitoring Systems
Data warehousing GIS Interface Identity Management Subsidy Management Business Intelligence Fertilizer Enterprise Information System
Intrafert
Backup Recovery
Prodn./Imports Monitoring
Supply/ Movement
Freight Subsidy
Ports/Railways
Banks
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Subsidy Received
Validates Request
Payment Received
Transaction Recorded
Stop
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mFMS :Vision
To track the Fertilizer Post Production till the Farm Gate To Maintain the Fertilizer Stock Position at all levels To provide platform to be utilized to disburse subsidy at retailer level
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mFMS : Objective
Track the movement of the fertilizer from the Warehouse to Wholesalers and from Wholesalers to Retailers. It will help in tracking the movement of Fertilizers consignments and its stock position in various warehouses. It will also act as a tool for Government Bodies to track and ensure the timely distribution of fertilizers to the farmers and
Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
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Department of Fertilizers
Registration of Dealers
Despatches from
Retailer
SMS for sales from company/ wholesaler Ack of Receipt
FMS Supplier
Receipt at
Warehouse
mFMS
Alert of Receipt thru e-mail/SMS Sale to Retailer Ack Receipt
thru mobile/web
SMS of daily Sales
Wholesaler/
Wholesaler
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Sale to
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mFMS : Modules
Mobile Based Module:
Fertilizer Receipt at wholesaler (on sale from companies) Fertilizer Sale by wholesaler (to retailers) Receipts at retailer level Daily sales by the retailer Opening stock with wholesaler Opening stock with retailer
mFMS : Overview
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Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
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Proprietary & Confidential 2011 National Informatics Centre. All Rights Reserved
Contd/
Contd. The Ultimate Phase : Smart Card based Solution In offline mode, smart card would be required for authentication of farmers. Smart card to have data like Name, Finger print, Village, Khasra No., Tillage, Land holding, Cropping pattern, etc. The transaction performed at the retailer shop shall be stored in the POS terminal. At any convenient time, the retailer would upload the sales transactions stored in POS to the central server using a GPRS network. Based on sale of fertilizers and nutrient subsidy rates, subsidy would be transferred to the bank account of (company)/retailer/ farmer. Informatics Centre. All Rights Reserved Proprietary & Confidential 2011 National
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Implementation Issues
Working methodology among administrators (Central, State, local bodies) and users (Fertilizer Producer, Distributors, Consumers) Institutional framework for Registration of Farmers, Standardization of biometric and registration parameters Infrastructure for issuing smart card (Data Collection, Digitization and printing of Smart card, Cost, Management of Smart card) Interface with External Systems/Databases Selection of Nodal Bank and designated banks Funding of infrastructure at Retailer level Capacity building at grass root level (Retailer/Farmer) Transaction Security Policy changes required for the project rollout
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