State-run Coffee Board of India has collaborated with Eka Software Solutions Pvt. Ltd, which develops commodity management software solutions, to launch a blockchain for its marketplace in order to eliminate middlemen and bring transparency to the trade.
A release by Coffee Board said that the blockchain would provide growers and buyers with a unified platform for better traceability and fair trade practices. This is reportedly the third blockchain solution for coffee growers globally, after France and Ethiopia.
“This pilot project will help integrate the farmers with markets in a transparent manner and lead to realisation of fair prices for the coffee producers,” said commerce secretary Anup Wadhawan. He added that the blockchain would reduce the number of layers between the growers and buyers, leading to an increase in farmer’s income.
The deployment will help the farmers to reach a wider set of buyers, while helping negotiate and manage sale, purchase and delivery of produce in real time.
With the blockchain, the release said that the produce could be traced from coffee beans all the way to the cup. This would eventually help farmers connect with buyers in international markets and charge the best price for the produce.
Other features of the collaboration include an online framework for sharing ledgers and transactions, and the potential for automatic digital payments in conjunction with trade. The release also stated that a digital ID (identification) would be created for all physical products and the sources of records would be accessible to all parties.
“With this activation, we are confident that the Coffee Board will help the Indian coffee trade make more inroads into the premium market internationally and make India one of the top three coffee producers in the world,” said Manav Garg, chief executive and founder of Eka Software.
Garg also stated that the initiative would pave the way for the modernisation of the agricultural industry.