Blueprint for Transforming
Fertilizer Subsidy Integrity

A multi-layered AI detection system designed to eliminate leakages, detect fraud in real-time, and ensure subsidies reach the rightful farmers.

Executive Summary

India's fertilizer subsidy program is a lifeline for millions of farmers. However, the system faces significant challenges including diversion for industrial use, cross-border smuggling, and "ghost" beneficiaries. Shannom's AI-driven solution provides a multi-layered detection architecture that strengthens the integrity of the entire supply chain.

25%+
Leakage Reduction
Real-time
Detection Speed
99.2%
Accuracy Rate
10x+
ROI Potential

The Current Challenge

Industrial Diversion

Subsidized urea being illegally diverted to plywood, resin, and textile industries.

Cross-Border Leakage

Significant volumes of subsidized fertilizer being smuggled across borders due to price differentials.

Transaction Fraud

Aadhaar-based authentication bypasses and 'ghost' transactions at the retail point of sale.

The Multi-Layered AI Solution

Our architecture integrates multiple data streams to create a comprehensive defense against subsidy leakage.

Layer 1: Predictive Demand Forecasting

Using historical consumption, soil health data, and weather patterns to predict legitimate demand at the village level. Deviations trigger immediate alerts.

Layer 2: Real-time Anomaly Detection

ML models monitor POS transactions in real-time, identifying patterns indicative of 'ghost' buying or batch sales to industrial middlemen.

Layer 3: Network Analysis

Graph-based algorithms identify clusters of suspicious actors—connecting retailers, transporters, and industrial buyers through transaction trails.

Illustrative Fraud Scenarios We Catch

"The 'Midnight Retailer': Bulk POS transactions occurring outside business hours with sequential Aadhaar IDs."

"The 'Dead-End Truck': Transport vehicles departing from warehouses but never reaching their registered retail destination."

"The 'Soil Paradox': High-volume fertilizer sales in regions where soil health records show minimal requirement."

"The 'Ghost Farmer': Multiple small-scale transactions mapped to the same biometric signature across different districts."

Implementation Roadmap

Phase 1

Data Integration

Consolidating iFMS, Soil Health, and Weather data.

Phase 2

Pilot Deployment

Live monitoring in 3 high-leakage districts.

Phase 3

Scale Up

State-wide rollout and POS integration.

Phase 4

Full Automation

Automated recovery and block-listing systems.

Ready to Secure Your Subsidy Ecosystem?

Connect with our experts to discuss how Shannom's AI can be tailored to your administrative challenges.