One of the biggest farmer producer organizations (FPO) in India announced that it plans to utilize the blockchain to help farmers get higher pay. The FPO, Sahyadri Farmers Producer Co, has confirmed that it will integrate blockchain into its business process.
Most of the FPOs operate as member-based institutions of farmers that result from a government-led initiative. The organizations enable farmers to sell agricultural produce at the most beneficial and advantageous prices.
The Hindu Business Line reported that Sahyadriplans to use blockchain for its supply chains to enhance efficiency and transparency in the traceability of all food products.
A Win-Win Scenario For Farmers And Consumers
Vivek Shinde, the founder of Sahyadri, said that in the current scenario the farmers receive just 25% of the final price of sold goods. Nevertheless, with enhanced efficiency via blockchain implementation, they can share up to 50% of their revenue with the farmers.
The organization now wants to use blockchain-based data sharing to enhance trust in its pricing; and sales information that is entirely shared with buyers and farmers.
Blockchain implementation will further enable customers to trace all products back to the individual farmer who produced it. Customers can do that using QR codes or the digital maps that mostly get attached to the products.
Blockchain In Agriculture Is Thriving
There is an increasing number of blockchain firms that are now working in the agriculture sector to boost efficiency; and enable the farmers to earn better revenue. In May, there was a blockchain-based agtech startup that inked a deal with the Indian government. The startup had the mandate to create a peer-to-peer marketplace for the farmers and buyers.
Agriledger built a blockchain ecosystem in March 2020 to guarantee that the farmers in Haiti got enough to pay for their produce.