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Blockchain in Agriculture

Blockchain technology can help democratize the space, supply chain efficiency and access to finance. 

The availability of this information within blockchain DLT will bring in;

1. Food safety 

2.  Supply chain

3. Disbursement of Government subsidies and policy. 

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The blockchain in agriculture and food supply chains market, insights and forecasts.

Report Summary

Blockchain technology can help democratize the space.

Snapshot : By leveraging blockchain technology the sector may improves traceability , food safety ,  increase smallholder farmers’ access to finance. While at the institutional / Government level distribution and delivery of subsidies can become more transparent . Land title registering herein will provide provenance and leasing / subleasing contracts  which  bring large scale corporate framing and modern scientific techniques to improve production through AL+ML and IoTs sensors creating open global markets for trade . 

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Consensus, trust, immutability, provenance and smart contracts—inherently built into any Blockchain decentralized networks can give us transformational use cases in agriculture for India.

“With 119 million farmers, 16% of the country’s gross domestic product and close to 8,000 farmer suicides a year, farming is in distress”. Reported by Jaspreet Bindra, senior vice president of digital transformation at Mahindra Group, for livemint.com.

He adds, “The reasons for this crisis are well known—ineffective subsidy management, lack of insurance and loans, small land holdings, lack of mechanization, and lack of information. The blockchain is best suited to solve such problems.”

Across the globe, the farming sector is heavily dependent on government subsidies. In India 2017-18 budget, USD 4.9 billion (INR 32,000 Cr) were allocated for agri-related subsidies to farmers.

But with the lack of transparency in the distribution and delivery of subsidies, what actual amount reached the farmers is alluring and vague.

The existing supply chain system needs a network of consensus, immutability, provenance and smart contracts and above all open transparency and trust.

Self-compliance through smart contracts —inherently built into any Blockchain network guarantees to plug out corruption and pilferages if properly introduced into an open decentralized transparency and trusted network.

India accounts for 7.68 percent of total global agricultural output, the use of modern technology and machinery is vital to maximizing output. But the inherent cost of implementation hampers its utilization. Solution share economy; an Uber-like model tractor and farm equipment sharing on a blockchain network.

Jaspreet Bindra, adds, “You can take it one step further and have fractional ownership of tractors, with multiple-party financing, to solve the mechanization problem”.

India has 140 million hectares of agriculture land, more than 80% is marginal and small holdings and around 60% of lands are prone to natural disasters like — drought, flood, etc.

Scientific or large-scale industrial farming to maximize output is thus missing. However, the introduction of IOT on a Blockchain network powered by smart contracts make it easier for the leasing of private land by establishing provenance and determines a more open compensation payment module.

Estonia has created  “a country as a service”; Dubai, Canada, and Japan are joining the race to putting all services on a Blockchain network; Mauritius is dubbing itself “Ethereum Island”!

The Indian government is not far behind, reportedly laying the groundwork for an agricultural blockchain system as part of a larger effort to create the wider national blockchain system, dubbed IndiaChain.

 

India’s comprehensive national agricultural blockchain plans unique to the country where large-scale industrial farming is relatively uncommon while addressing immediate problems driving towards autonomous smart farms.

Soil Health cards

  • Scheme digitizes information on land use and soil quality around the country,  farmers can get recommendations on how to manage the land for sustainability and optimal yields

Quality of land, suitable crops to be grown, harvests, while how much fertilizer and soil additive to use. All data is regularly fed in an update and feedback forwarded in a Blockchain network.

Crop tracking

Supply chain tracking on Blockchain will plug out problems of “counterfeit” produce. Organic produce, grown in soil that’s never used fertilizer determine by Soil health cards Scheme, attract a considerable premium rate for the farmers.

Land rights

India has more than four million pending land dispute cases. India has 140 million hectares of agriculture land, more than 80% is marginal and small holdings.

“Small-scale agriculture is India’s economic vertebrae, but the mismatch of proof of provenance in a road breaker to its optimization. The Indian government is aiming to solve this through the blockchain

The Indian state of Andhra Pradesh led by chief minister Nara Chandrababu Naidu has already implemented a pilot of India’s byzantine landrecord system.

 Sector by sector. Industry by industry. Block by block.

India is all set to become a “blockchain nation”.

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