One of India’s largest farmer producer organizations plans to use blockchain to help farmers receive higher pay.
One of India’s largest farm producer organizations (FPO), Sahyadri Farmers Producer Co, is integrating blockchain into its business process.
FPOs are member-based institutions of farmers that are the result of a government-led initiative. The organizations help fars sell agricultural produce at the most advantageous prices.
Local news outlet The Hindu Business Line reported that Sahyadri will use blockchain for its supply chains to increase efficiency and transparency in the traceability of food products.
A win-win for customers and farmers
The founder of Sahyadri, Vivek Shinde, said that in the present scenario, farmers get only 25% of the final price of sold goods. However, with increased efficiency through blockchain implementation, they can share as much as 50% of their revenue with farmers.
The organization expects to use blockchain-based data sharing to improve trust in its pricing and sales information that it shares with farmers and buyers.
Blockchain integration will further allow customers to trace products back to the individual farmer who produced it. Customers will be able to do so using QR codes or digital maps attached to the products.
Blockchain in agriculture is growing worldwide
An increasing number of blockchain companies are now working in the agriculture industry to increase efficiency and help farmers earn better revenue. In May, a blockchain-based agtech startup inked a deal with the Indian government to create a peer-to-peer marketplace for farmers and buyers.
In March, Agriledger built a blockchain ecosystem to ensure that farmers in Haiti receive adequate pay.