Harpal Singh, a small wheat farmer in Punjab, wakes up every day before dawn.This is despite the fact that he and his family work tirelessly, yet they continue to earn very little. As middlemen take a big share. Payments are often delayed. Nearly three-quarters of India’s families depend on rural incomes. Like Harpal, most smallholder farmers struggle within systems plagued by inefficiencies and lack of transparency. The majority of India’s poor – around 770 million people, or about 70% – live in rural areas. Blockchain in agriculture can change this reality. It offers a secure way to track crops, ensure fair prices, and reduce delays.
As a mass communication specialist, business coach, and co-founder of Trendvisionz, I have witnessed how technology transforms lives, empowers farmers and businesses, creates new opportunities, and builds stronger communities, driving growth across industries in India and beyond.
In this article, I explore how blockchain technology, smart contracts, and tokenized supply chains can empower farmers like Harpal Singh. Together, they promise a future where India’s agricultural supply chain is efficient, transparent, and fair for all.
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Defining Blockchain in Agriculture
Blockchain in agriculture is changing how we grow, sell, and consume food. We will now define blockchain and explains how it is transforming Indian agriculture with real examples.
What is blockchain?
Blockchain is a digital ledger shared across many computers. It stores transactions in a series of interconnected blocks, forming a secure chain. Each block has a timestamp and cannot be changed once added. This makes blockchain secure, transparent, and trustworthy1
While blockchain offers transformative potential, researchers suggest exploring quantum solutions2 to address its future scalability and security challenges. In simple words, blockchain is like a notebook everyone can read but no one can erase. This builds trust among farmers, buyers, and consumers.
Agri blockchain solutions are transforming how farmers record transactions, ensuring secure, transparent, and tamper-proof data management.
How does agriculture use blockchain?
Blockchain technology records every step in the agricultural supply chain. Farm-to-table technology using blockchain connects farmers directly to consumers. Jharkhand uses a blockchain technology based seed distribution system to track seeds from the Directorate of Agriculture to farmers.
By using a digital token to represent each batch of crops, blockchain makes trading and payment processes faster, more secure, and transparent for all stakeholders. Blockchain and digital agriculture technologies are empowering farmers with direct market access.
Blockchain for Traceability and Export Compliance
Research explain how blockchain tracks supply chains in China, ensuring safety and quality. Similar blockchain systems can enhance agricultural export readiness by ensuring traceability and compliance. Products like dairy, fresh fruits, and apples from Himachal Pradesh, helping overcome SPS barriers and meet global food safety standards.
Blockchain in agriculture is more than a digital upgrade. It is creating fair prices, efficient supply chains, and safe food systems – empowering Indian farmers and consumers alike.
The Efficacy of Blockchain Technology in Agriculture
The powerful technical features of blockchain in agriculture make it highly effective. This section explains how these features solve real problems faced by Indian farmers and supply chains.
Smart contracts
Smart contracts are self-running agreements stored on blockchain. When conditions are met, payments or actions happen automatically. Recent research highlights how blockchain-enabled Java smart contracts combined with IoT3 can transform agricultural supply chains.
In the SugarChain pilot, grassroots sugarcane farmers used IoT sensors to measure crop yield and quality. Smart contracts on blockchain were programmed to automatically release payments once real-time sensor data confirmed predefined quality thresholds. This ensured fair pricing, prevented disputes, and reduced middleman influence
Distributed ledger
Blockchain is a distributed ledger, meaning data is shared across many computers. No single person controls it. In agriculture, this ensures that farmers, buyers, and consumers can all see the same data. It reduces disputes about quality, quantity, or delivery.
Immutability
Once data is added to blockchain, it cannot be changed. This immutability prevents fraud. For example, seed distribution records in Jharkhand are now safe from tampering. Farmers get genuine seeds, ensuring better crops
Timestamping
Each transaction has a timestamp showing when it happened. In agriculture, this helps track when crops were harvested or transported. Consumers can check freshness and safety.
Consensus Mechanisms
Blockchain works through consensus mechanisms. This means all users agree before adding new data. In farming, it ensures that crop quality checks, payments, and delivery records are verified by all stakeholders.
These key features make blockchain in agriculture powerful. They build trust and improve efficiency across India’s agricultural supply chain.
The Imperative for Innovation in India’s Agricultural Sector
Agriculture remains the cornerstone of India’s economy. The sector employs almost half of India’s population. It stands as a pillar of the nation’s economy and development, contributing 17.7% to the Gross Value Added (GVA) in FY 2023-24.
Yet, it struggles with low productivity, unfair pricing, and outdated systems. Farmers face debts and delayed payments. Consumers worry about food safety. Innovation is needed to build transparent, efficient supply chains and empower both farmers and buyers.
“India’s food security depends on producing cereal crops, as well as increasing its production of fruits, vegetables and milk to meet the demands of a growing population with rising incomes. To do so, a productive, competitive, diversified and sustainable agricultural sector will need to emerge at an accelerated pace.” – World Bank
Why is change needed?
Over 86% of Indian farmers are smallholders. They face low incomes, rising debts, price manipulation by middlemen, delayed payments, and lack direct market access. These challenges reduce their earnings and limit growth in India’s agricultural sector.
- Low incomes and rising debts
- Price manipulation by middlemen
- Delayed or partial payments
- No direct access to markets
- Lack of fair pricing
Supply chain Inefficiencies
India’s agricultural supply chain is long and fragmented. Multiple intermediaries handle the agri-produce before it finally reach consumers. This leads to:
- High costs for buyers
- Delayed payments to farmers
- Food wastage – over 30% of fruits and vegetables rot post-harvest (Food Wate Index Report)
- Poor tracking of food safety and freshness
The complexity of these supply chains, coupled with rising consumer demand for sustainability and ethical practices, calls for a more open and transparent approach. As Cropway highlights:
The complexity of these supply chains, coupled with rising consumer demand for sustainability and ethical practices, calls for a more open and transparent approach
Why is blockchain important in agriculture?
Blockchain technology creates a shared, unchangeable record. It brings transparency, trust, and faster payments, reducing fraud and improving efficiency.
For India to empower farmers, ensure food safety, and build consumer trust, innovation is urgent. Blockchain in agriculture is not just an option – it is essential for a fair, efficient, and sustainable future.
Empowering Indian Farmers: Key Benefits of Blockchain Adoption
Blockchain in agriculture is changing how farmers sell, earn, and grow. We would now explains the key benefits for Indian farmers.
Faster payments and fairer pricing
Farmers often wait weeks for payments after selling their crops. Blockchain technology changes this with smart contracts. When produce is delivered and passes quality checks, payment is released instantly. No delays or dependency on middlemen for settlements.
By recording real-time transactions, blockchain ensures farmers get fair market prices. There are no hidden deductions or price manipulation by agents. This level of transparency fosters greater trust throughout the supply chain.
Building Creditworthiness with Blockchain Records
Many farmers lack formal credit history, making it hard to get loans. Blockchain generates a secure digital trail of their sales and payment transactions. This acts as proof of income and reliability. For instance, blockchain can support tenant farmers in states by recording digital transactions as proof of income. Imagine a vegetable farmer in Bihar using such records to easily secure a microloan for drip irrigation, improving productivity and income stability.
With such records, banks and cooperatives can assess creditworthiness faster. Farmers can access crop insurance, input loans, and subsidies without delays.
Reducing dependency on intermediaries
Middlemen control pricing and take large profit shares in India’s agricultural supply chain. Blockchain platforms connect farmers directly to buyers, retailers, or consumers.
Farmers are now receiving seeds using a one-time password (OTP) sent to their mobiles, which has curbed the menace of middlemen and brought efficiency into seed distribution- Abu Bakr Siddiqui
This tokenized supply chain model reduces unnecessary layers, ensuring farmers earn more per kilogram of produce sold.
In Raigarh, Chhattisgarh, underprivileged women engaged in mushroom cultivation gained market access through digital platforms. This reduced their reliance on local traders, ensured better prices, and created new income streams to support their families.
Blockchain in agriculture is not just digital records. It empowers farmers with fair prices, faster payments, and easier financial access. By reducing dependency on intermediaries, it gives farmers control over their produce, income, and future. Thus building a stronger, self-reliant agricultural economy.
Case Study: CBDC Pilot Project for Landless Farmers in India
In India, landless tenant farmers frequently face challenges in obtaining formal credit. Without land titles, they are excluded from schemes like Kisan Credit Cards. The CBDC pilot project, combining blockchain technology with India’s digital rupee, aims to change this.
How does it work?
In Andhra Pradesh and Odisha, NABARD working in collaboration with RBI the State Bank of India designed to close the credit access divide for cultivators without land titles. Blockchain securely captured each transaction, providing full traceability and safeguarding against misuse. Payments are sent directly to approved input vendors for seeds, fertilizers, or equipment.
Calculations showing impact
- Total funds sanctioned: ₹4.5 crore (approx. $526,230 USD)
- Farmers benefited: 719 (501 in Odisha, 218 in Andhra Pradesh)
- Average loan per farmer: ₹62,560 ($730 USD)
These loans carried an interest rate of 7% per annum, reduced to 4% if repaid on time under the Modified Interest Subvention Scheme (MISS). From FY2026, the loan limit will increase to ₹5 lakh ($5,847 USD), expanding support further.
Outcome
This CBDC + blockchain model ensures that funds reach intended beneficiaries efficiently. It creates digital transaction records for landless farmers, building their credit history for future loans and crop insurance.
The CBDC pilot shows how blockchain in agriculture can drive financial inclusion, empower marginalized farmers, and create a fair, accountable agricultural finance system.
Case Study: Telangana’s Spurious Seed Combat Initiative
Fake and low-quality seeds are a major problem for Indian farmers. They reduce yields, cause financial losses, and damage farmer trust. Telangana launched a blockchain-based initiative to fight this issue.
How does it work?
The Telangana government, in collaboration with its IT and Agriculture Departments and Professor Jayashankar Telangana State Agricultural University (PJTSAU), has implemented a pioneering blockchain-based seed traceability system. This digital platform captures and securely records every stage of seed production and distribution, including
- Pre-pollination and pollination inspections to ensure genetic purity
- Field inspections during fruiting and harvesting for quality assurance
- Laboratory testing results for germination rates and disease resistance
- Post-harvest processing details, such as cleaning, grading, and packaging
Each seed batch is tagged with a tamper-proof QR code, enabling farmers to instantly verify its authenticity and quality before purchase. By leveraging blockchain’s immutability and transparency, this system prevents counterfeit seeds from entering the supply chain, protects farmers from fraud, and builds trust in certified seed varieties, ultimately improving crop yields and agricultural productivity in the state
Measurable Outcomes
- Improved seed quality verification across supply points
- Decreased circulation of fake / counterfeit seeds across Telangana’s markets
- Increased confidence among farmers in government-certified seeds
Resource Insight
According to the resource report, this project creates a secure, decentralized system that is difficult to tamper with. It ensures better crop yields and reduces losses from fake inputs.
Telangana’s initiative shows how blockchain in agriculture can protect farmers from fraud, ensure input quality, and build a more secure agricultural supply chain.
Case Study: Jharkhand’s Seed Distribution Program
Farmers in India often struggle with delayed or poor-quality seed supplies. Jharkhand was the first state in India to implement blockchain technology for ensuring transparency in seed distribution. Highlighting this achievement, Nesha Oraon says:
Jharkhand is first the state to implement blockchain in the country which is being used to track seed distribution. The move to implement blockchain is aimed at bringing transparency and authenticity of seeds which the farmers receive under the seed exchange scheme and other schemes- Nesha Oraon, Former Director – Agriculture, Government of Jharkhand
How does it work?
In partnership with SettleMint, an international blockchain company, Jharkhand’s Directorate of Agriculture launched a digital platform to track seed distribution. Every step is recorded:
- Procurement by the Directorate
- Movement through distributors, retailers, and cooperatives (PACS/LAMPS, FPOs)
- Final delivery to farmers
Key features
- Each transaction is time-stamped and immutable
- Records are shared with all stakeholders
- Fraud and data manipulation are prevented
Outcomes
According to CoinGeek and the resource report:
- Farmers received seeds on time, improving sowing cycles
- Genuine, quality-certified seeds reached farmers, boosting crop yields
- Transparency across the supply chain strengthened trust between farmers and government agencies.
Blockchain Seed Distribution: A Model for Indian States
Access to certified seeds at the right time is crucial for farmers’ productivity and income security. Blockchain-enabled distribution ensures transparency and efficiency in seed supply chains.
- Yield improvement: Certified seeds before sowing can boost yields by 15-20%.
- Higher income: Better harvests translate to increased earnings for farming families.
- Food security: Improved yields strengthen household and regional food availability.
- State benchmark: Jharkhand’s blockchain seed distribution sets an example for other states to follow.
A wheat farmer receiving certified seeds before the sowing window can improve yield by 15-20%, translating to higher income and food security for their family.
Implemented by directorate of Agricuture, Jharkhand’s use of blockchain for seed distribution sets a benchmark for other states in India. It shows how blockchain in agriculture can ensure timely delivery, prevent fraud, and empower farmers with reliable inputs.
Improving Food Safety, Quality, and Consumer Trust
Ensuring food safety and quality remains a top priority for consumers in India. Blockchain in agriculture ensures blockchain food traceability4. It builds trust from farm to fork by recording every stage securely.
Our focus is to reduce pesticide risks and strengthen food testing to ensure every consumer in India has access to safe, quality food- Shri G. Kamala Vardhana Rao, CEO, FSSAI
Farm-to-fork traceability
Every stage – from planting and harvesting to storage and retail – is recorded on blockchain. Each entry is time-stamped and immutable. For example, a QR code on a tomato pack can show where it was grown, fertilisers used, and harvest date. Blockchain creates traceable food systems, ensuring safety, authenticity, and quality from farm to fork.
Global example: IBM Food Trust
IBM Food Trust leverages blockchain technology to monitor and manage food supply chains worldwide. “Thank My Farmer” app lets coffee buyers trace beans to individual farmers, learn about production methods, and support fair trade. Similar models in India can ensure urban consumers get verifiable information on milk, grains, or vegetables.
Benefits for Brands and Public Health
In the event of contamination, blockchain enables rapid identification and isolation of affected batches, avoiding extensive recalls. This reduces health risks, economic losses, and protects brand credibility.
Blockchain empowers consumers with transparent information. Reducing post-harvest food loss is critical for food security. According to the World Economic Forum, improving supply chain efficiency can significantly cut down food wastage in India. The demand for ethically sourced, safe food grows, blockchain will become essential for India’s food brands and retailers for market advantage.
Revolutionizing the Agricultural Supply Chain and Traceability
India’s agricultural supply chain is long and complex. Blockchain is reshaping the ecosystem in Indian agriculture, it into a more transparent and efficient system.
How blockchain reshapes supply chains
Traditional systems involve many middlemen, leading to delays, higher costs, and wastage. Blockchain establishes a unified digital ledger that all stakeholders can access. Farmers, distributors, and retailers can view real-time updates, reducing communication gaps and fraud.
Example: Spice Value Chain in Andhra Pradesh
The Spice Board of India and UNDP Accelerator Lab use blockchain to trace chili and turmeric from farms to exporters. It creates tamper-proof records of origin, quality, and certifications. This boosts farmer incomes by meeting export quality standards and assures buyers globally of product authenticity (resource.docx).
Farm-to-table visibility
Blockchain connects planting, harvesting, storage, transport, and retail data. This ensures optimal supply chain decisions, reduces wastage, and accelerates delivery.
Blockchain ensures supply chain transparency, building trust and efficiency from farmers to consumers nationwide. It benefits farmers with better prices, reduces losses, and ensures safe, certified products reach consumers efficiently.
Challenges and Barriers to Widespread Blockchain Adoption in India
Despite its promise, blockchain in agriculture faces barriers that must be addressed for wider adoption.
Infrastructure and cost challenges
Many rural areas lack stable internet and digital infrastructure needed for blockchain apps. High initial investment in software, training, and integration with existing systems limits scalability, especially for small cooperatives and FPOs.
Skill gaps and farmer acceptance
Most farmers are unfamiliar with blockchain. Local language applications, intuitive training programs, and community-based demonstrations are crucial. Moreover, confusion with cryptocurrency creates mistrust among stakeholders.
Policy and regulatory gaps
India needs clear policies on blockchain data privacy, smart contract enforcement, and interoperability standards. Without regulatory clarity, private and public sector investments remain cautious.
Interoperability and scaling
Different blockchain platforms may not integrate seamlessly. Scaling to millions of small farms requires unified standards and collaborative frameworks across states and agri-tech companies.
To unlock blockchain’s potential, India must build digital infrastructure, invest in training, and create supportive policies. Only then can blockchain transform agriculture into a fair, transparent, and farmer-first system.
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FAQ: Blockchain in Agriculture
What are the benefits of blockchain for farmers in India?
Blockchain benefits Indian farmers by ensuring fair prices. It ensures faster payments through smart contracts. Also farmers benefit with secure crop tracking, building credit history for easier loans. Blockchain in agriculture is reducing dependency on middlemen. It is empowering farmers with direct market access and better incomes.
How does a tokenized supply chain work in agriculture?
In agriculture, tokenized supply chains convert produce like grains or milk into digital tokens on blockchain. These represent ownership and quality, enabling secure trade, transparent tracking, and instant payments between farmers, buyers, and retailers.
Can blockchain reduce food wastage in supply chains?
Yes. Blockchain improves supply chain transparency and coordination. Real-time tracking allows quicker rerouting of perishable produce, reducing delays, spoilage, and food wastage while ensuring fresher products reach consumers efficiently.
How does APSSCA seed certification link to blockchain?
APSSCA certifies seeds from planting to sale. Integrating blockchain can record each certification stage securely, ensuring tamper-proof data and giving farmers confidence in seed quality and authenticity.
Conclusion: Charting the Road Ahead
Blockchain in agriculture is more than digital innovation. It ensures fair pricing, faster payments, food safety, and transparent supply chains. From tenant farmers gaining credit access through CBDC pilots to improved seed traceability in Telangana and Jharkhand, the benefits are clear.
For true transformation, collaboration is vital. Government policies, private sector technologies, and farmer training must align to build scalable solutions.
Now is the time to act. By integrating blockchain and digital agriculture, farmers can empower themselves. Secure food systems, and help India lead the world in sustainable, technology-driven agriculture.
Integrating AI and IoT with blockchain will further revolutionize Indian agriculture by enabling precision farming, predictive analytics, and smarter supply chains.
Additional Resource:
- Xiong, H., Dalhaus, T., Wang, P., & Huang, J. (2020). Blockchain technology for agriculture: Applications and rationale. Frontiers in Blockchain, 3, Article 7. ↩︎
- Dey, Nivedita & Ghosh, Mrityunjay & Chakrabarti, Amlan. (2021). Quantum solutions to possible challenges of Blockchain technology. 10.48550/arXiv.2110.05321. ↩︎
- Adil El Mane, Khalid Tatane, Younes Chihab, Transforming agricultural supply chains: Leveraging blockchain-enabled java smart contracts and IoT integration, ICT Express, Volume 10, Issue 3, 2024, Pages 650-672, ISSN 2405-9595 ↩︎
- World Economic Forum. (2024, August). From source to stomach: How blockchain tracks food across the supply chain and saves lives ↩︎
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About the Author: Anuj Mahajan is a Mass Communication Specialist, ICF Certified Coach & Corporate Trainer. Motivational Speaker / NLP Lifecoach. With expertise spanning filmmaking, business coaching, motivational speaking, blog writing, and authoring, he embodies versatility and mastery across diverse fields.
Chief Operating Officer: Nuteq Entertainment Pvt Ltd, and Co-Founder: Trendvisionz – A Premier Digital Marketing Agency in India
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3 comments
This article offers a brilliant perspective on how blockchain is revolutionizing agriculture. It’s amazing to see how technology can empower farmers, improve transparency, and ensure fair trade. These innovations are vital for food security and sustainability. Thanks for highlighting such an important shift in modern farming. Looking forward to seeing how this evolves globally!. Best regards, Marisol of Unique.
Loved it- antalya nakliye
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