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  • 04 January, 2023

  • 9 Min Read

Blockchain application in Agriculture

Blockchain application in Agriculture

  • Recently, the government announced plans to implement the technology across all crops grown for export to enhance food shipments and encourage farmers to adopt chemical-free practices.
  • Blockchain could eventually give natural farming in India a technological boost.
  • Agriculture may benefit from ground-breaking innovations and cutting-edge technologies like blockchain and artificial intelligence (AI).
  • Blockchain technology will undoubtedly change the game for India's agrarian industry because it can deliver reliable, tamper-proof information about farms, inventory, credit scores, and food tracking. Farmers may now record and store crucial data without having to rely so heavily on papers or files.

Blockchain applications in agriculture:

The blockchain agriculture market will encompass all the segments, such as:

  • Agricultural Insurance
  • Land Registrations
  • Agricultural Supply Chains
  • Fisheries
  • Forestry
  • Agribusinesses
  • Sellers
  • Suppliers etc

The agricultural food supply chain has grown longer and more intensive than ever before as a result of the overwhelming pressures of globalization. By making it easier for producers and customers to create confidence, blockchain technology aids in the resolution of many of these problems.

Advantages of using blockchain in agriculture:

Supply chain efficiency:

  • With all types of transportation, logistics, and weather-related data readily available, the stakeholders such as blockchain agriculture companies can easily avoid the bottlenecks. This will impart speed to the overall supply chain and will remove all the redundancies as well.

Food waste:

  • The blockchain ledgers will offer detailed insights into the major hotspots of food waste and will thus help in curbing down the root cause of food wastage.

Building trust with customers:

  • As the end-users or consumers can access all the information regarding the sourcing of the ingredients, the place of origin, and the reasons for the pricing, they can rest assured that they are being charged the right amount. Further, the consumers can also develop trust in the brands with rightful information readily available.


  • The farmers can partner with blockchain agriculture companies to get manless devices and gadgets to perform sustainable agriculture. Some examples include drones for sprinkling seeds and insecticides and sensor-based sprinklers for making the best possible use of available water.

Transparency and reliable information to stakeholders:

  • Being a decentralized incorruptible ledger, blockchain is extremely transparent to all the participants. So, be it the farmers, stockists, food processing companies, or consumers – everybody has a transparent view of data and information.
  • This information extends beyond the simple sale, purchase, or pricing data, such as climate data, ingredient sourcing, logistics, supply chain information, seed quality, and food quality. Hence, the chances of fraud are extremely minimized.

Openness to customers:

  • Every link in the food supply chain can benefit from correct information being stored and made available due to the blockchain.
  • As a result, consumers are more likely to purchase goods from certified farms and practice responsible consumption.

Food safety:

  • The supply chain and logistics operators can derive actionable insights from the historic data to check the best time, stage, and ways to transport crops and processed food items. This will also improve the handling, processing, storing, and packaging activities to ensure food safety at all times.

Food freshness:

  • As the supply chains get faster and more data-driven, they can play an important role in ensuring food freshness. Blockchain agriculture companies can take more specific decisions regarding the processing of raw products and delivery of finished goods to offer fresher and better quality consumables in the market.

Farmer friendly:

  • Farmers can select from a range of insurance plans that vary in terms of how compensation is determined for losses and how they are calculated.
  • The buying and selling of agricultural products on e-commerce platforms might be significantly speed up with the usage of blockchain technology.
  • Smart farming for minimizing the effects of weather extremes on crops


  • In the event of a recall, they can also make it simpler to identify the source of any contamination or other problems.
  • Sustainable development and food security are these technologies' main objectives.

Agricultural Blockchain Cons:

  • A big barrier to the adoption of blockchain for farmers who cannot afford it is: Although putting up the ledger is fairly inexpensive, gathering data may be time- and money-consuming.
  • Small-scale farmers may fall behind because they lack the size, technological know-how, and scalability required to benefit from blockchain technology.
  • Misuse: There have been worries that blockchain technology may be utilized incorrectly or improperly, endangering the safety of our food supply.
  • Inadequate research before blockchain technology is fully adopted in agriculture, many concerns need to be handled.
  • Consumers can make better decisions if sustainable and equitable food systems are implemented.

How does blockchain technology work?

  • Blockchain is a decentralized, immutable database that makes it easier to track assets and record transactions in a corporate network.
  • On a blockchain network, practically anything of value may be recorded and traded, lowering risk and increasing efficiency for all parties.
  • Instead of having a single server and administrator, it shares privileges across all network users.
  • When many parties can view and verify new database additions, security is increased and the chance of corruption is reduced.

Way Forward

  • By outlawing unethical crop production and distribution, which threatens farmers' livelihoods, blockchain technology can increase security.
  • Decentralized blockchain implementation is required to serve small farmers and rural residents. Food security won't improve without change.

Source: The hindu

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