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Shaping food and fertilizer subsidy programs, India

  • calendarAug 14, 2025
  • time 2 min

Food, fuel, and fertilizer (FFF) subsidies in India account for 6–7% of the total budget and nearly half of social sector spending. MSC has shaped, optimized, and evaluated these major subsidy programs through close partnerships with key ministries and agencies. MSC’s expertise spans the full policy cycle, from initial design and pilot testing to large-scale implementation, ongoing assessment, and evidence-based refinement. 

Fertilizers 

MSC was instrumental in assisting the NITI Aayog and the Department of Fertilizers in designing and rolling out India’s Direct Benefit Transfer (DBT) system, which began with pilots in Andhra Pradesh and expanded nationwide. MSC provided end-to-end support, which included policy design, rapid evaluations, and implementation guidance. Their evidence-based recommendations led to further reforms such as piloting direct cash transfers (DCT) to farmers, advocating for a comprehensive farmer database, and promoting soil health initiatives for more efficient fertilizer use. 

Food 

Since 2014, MSC has been a key advisor to the Department of Food and Public Distribution (DFPD), driving the digital transformation of the Public Distribution System (PDS). The work included technical assistance to the end-to-end computerization—digitizing beneficiary databases, supply chains, and automating fair price shops. Further, MSC formulated a technical support unit (TSU) at DFPD in 2020 to continue providing technical support to the department’s initiatives. MSC supported pilots for transitioning from in-kind food distribution to cash transfers and played a crucial role in the design and implementation of the One Nation One Ration Card (ONORC) initiative, which enabled benefit portability for migrant workers. 

MSC spearheaded the rice fortification program, supporting the DFPD from initial pilots in 2020 to full-scale implementation. The insights strengthened the supply chain and developed digital solutions to enhance transparency and efficiency in rice fortification and quality control. MSC has also supported the DFPD in advancing nutrition security by contributing to the revision of Schedule II of the National Food Security Act (NFSA). This revision aimed to more precisely define the macro- and micronutrient requirements for food provided under the three key food security programs, tailored to the needs of specific beneficiary groups such as pregnant and lactating women, children under five, school-going children, and adolescent girls. MSC also played a pivotal role in conceptualizing and piloting the Jan Poshan Kendra to transform 60 fair price shops into nutrition hubs across four states. 

The Gates Foundation commissioned the project. 

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