Blockchain is a decentralized process of recording transactions on an open and shared electronic ledger. This allows for ease and transparency in data management across a complex network, including, farmers, brokers, distributors, processors, retailers, regulators, and consumers, thus simplifying the supply chain
And in this regard, Spices Board India under the Ministry of Commerce and Industry and UNDP India’s Accelerator Lab have signed a Memorandum of Understanding (MoU) with the aim to build a blockchain-based traceability interface for Indian spices to enhance transparency in the supply chain and trade.
Blockchain will allow farmers just as all other members of the supply chain to access the information which further makes the entire supply chain more efficient and equitable.
UNDP and Spices Board India is working towards integrating the Blockchain Traceability Interface with the e-Spice Bazaar portal developed by Spices Board India for connecting spices farmers with markets. The design of the blockchain interface is expected to be completed by next month.
The project will be piloted with over 3000 farmers engaged in chilly and turmeric farming in select districts of Andhra Pradesh.
India’s spices export crossed a milestone of $3 billion during 2019-20, and the board’s estimates indicate that India would cross that milestone and achieve a new high during 2020-21.
This UNDP-Spices Board joint initiative to build a blockchain-powered traceability interface for Indian spices is another significant milestone in the journey to make the spices value chain efficient, transparent, and equitable for all stakeholders. Blockchain technology is behind bitcoins, which has many prominent backers including Elon Musk, now.
This traceability interface is expected to enhance consumer confidence and facilitate the sourcing of spices for exports as well as for local value addition and use. Upon successful demonstration, the Board would like to expand the reach of this interface to cover all major spices and regions of the country, and expects to have continuous partnership and support from the UNDP.