The Blockchain platform of Indian government for tracking coffee has seen noteworthy embracing. Interestingly, more than thirty thousand coffee farmers have signed up on the platform after a few months of the launch.
The Coffee Board of India did a partnership with software company Eka Software Solutions to launch a blockchain platform, back in March this year. On the platform various stakeholders could register and trade coffee. These stakeholders include exporters, farmers, curers, international buyers, and roasters.
Initial Response For Blockchain in Coffee
Initially, the response was not that good. Nonetheless, as the new season began, its fortunes have altered. Notably, the new season lasts from the month of November to March. In this season, more than thirty thousand farmers have signed up just after eight months of the inauguration.
As per some stats, the coffee production of India decreased by around ten percent from year 2016 to 2018. Around seventy percent of the produced coffee is exported. Hence, the government of India wanted to enhance sales by making sure customers can substantiate the source of the coffee. The Coffee Board of India will also begin uploading verifiable certificates on the platform.
Conventionally, the coffee farmers have been doing their sales through mediators for a number of years. Generally, agents take up to ten percent cut in order to connect the buyers with farmers. Because of this, the farmers get less than five percent of the money for each cup of coffee sold. Using blockchain, the government of India wants to eliminate the requirement for agents so that farmers obtain comparatively improved prices.
Smart Contracts & Blockchain in Supply Chain
It is to be noted that the Indian farmers can start deploying smart contracts, apart from disrupting the existing coffee supply chain. Moreover, the Indian farmers can generate legally binding agreements on the platform with buyers without the requirement of a legal contract.
What do you think about the latest update on the implementation of blockchain in Coffee industry in India?