Brain Booster for UPSC & State PCS Examination (Topic: Blockchain in Agriculture)

Why in Broadcast?

NITI Aayog has recently launched a pilot project in collaboration with the Himachal Pradesh government on apple farming. Indian natural farming is set to get a technological push through Blockchain, to ensure quality production and monitor the produce across the supply chain and entire storage.

The blockchain, in layman terms, is a ledger of accounts and transactions that are written and stored by all participants.
The ledger is collectively managed by all participating parties typically through a peer-topeer network.
Multiple parties can access and validate new database additions, increasing security and lowering the risk of corruption.

Although India ranks 2nd in terms of the production of fruits and vegetables, its export share around the world is only 1%.
Blockchain technology can help in bridging the gap between the lack of quality and traceability enhancing the India’s food export as well as incentivising the growers.
IoT sensors are used to generate crop data, the distribution of grown crops to food processing companies, and supply of processed food to wholesalers and retailers.
Recording information about the product at every stage might help remove the redundant processes, ensure quality control and monitor storage conditions.
Even consumers can trace the supply chain of products to ensure quality products while buying.

There have been concerns regarding misuse and misapplication of Blockchain technology. For example, privately held blockchain have less security and are easy to hack.
Small scale farmers who are rather a newbie to this and lack technological know-how may be left behind.
To serve small farmers and rural residents, blockchain implementation must be decentralised or food security will continue to be a problem for the country.
It’s important to educate people who lack the digital literacy and are required to use blockchain technology or the lack of digital literacy may prevent them from participation.

As per Agriculture and processed food products export development authority, India exported fresh fruits and vegetables worth $1.52 billion in 2021-22.
While, the export of processed fruits and vegetables (pulses, processed fruits and juices etc.) accounted for approximately $1.73 billion.
Major export destinations for India’s fresh fruit and vegetable include Bangladesh, UAE, Nepal, Netherlands, Malaysia, Sri Lanka, Oman and Qatar.

After completion of the pilot project on Apples, this model will be further replicated with other crops including grapes, mangoes, pomegranates, bananas and vegetables.
Blockchain technology can increase security by preventing unethical crop production and distribution, which puts farmers’ livelihood at risk, while boosting transparency in the food supply chain.
It will allow consumers to make better informed choices, and will able to assist ( if implemented properly) small-scale farmers who are in need of security in terms of food and finance.