Fragmented Agricultural Sector
Half of India’s population relies on agriculture for income, with rural incomes lower than the national average. The sector is fragmented, with around 150 million operational farms, 30 million backyard poultry farmers, and 30 million fisherfolk on 160,000 fishing vessels. This fragmentation presents both challenges and opportunities for a digital and data technology revolution.
Building the Agri Stack
India has been a global leader in digital innovation, exemplified by India Stack’s Aadhaar and UPI systems. Following this, Agri Stack aims to create a digital foundation for agriculture, combining databases, digital standards, policies, and technology links to connect all stakeholders. Progress has been slow, but the potential for transformation is immense.
Blockchain for Transparency and Trust
Blockchain technology offers transparency and traceability, which can increase market access and farmer prices by setting new standards and guardrails. Despite challenges in implementation costs and land ownership records, the potential benefits are significant, similar to the evolution of digital banking.
Driving Blockchain Adoption
Regulations like the European Union Deforestation Regulation (EUDR), effective from December 2024, push for blockchain adoption to ensure commodities like soya, beef, palm oil, wood, cocoa, and coffee entering the EU are not linked to deforestation. Blockchain offers an efficient way to comply with such regulations, building brand confidence and generating revenue.
Sustainability and Market Initiatives
Many food companies aim for sustainability by tracking and reducing emissions from agriculture. Blockchain helps in achieving traceability and sustainability goals. The e-Spice Bazaar initiative by the Spices Board India uses blockchain to create a transparent supply chain for farmers in Andhra Pradesh and Telangana, improving market reach and price realization.
Encouraging Blockchain Adoption
Sharing experiences and knowledge from blockchain initiatives is crucial for educating and encouraging others. Innovators should share designs, models, challenges, costs, and improvement plans for blockchain pilots to accelerate technology adoption.
Data protection and privacy are critical in digital agriculture. Ensuring rigorous data protection protocols and a farmers-first approach is essential, especially for those unaware of their digital rights. Blockchain must serve the people, acting in the service of farmers to drive the digital and data revolution in agriculture.
The time has come for the digital and data revolution to reach agriculture, leveraging blockchain technology to enhance transparency, sustainability, and market access for Indian farmers.