Jharkhand becomes the first state to introduce blockchain technology in farming

Jharkhand State Government becomes first in India to implement blockchain technology in agriculture sector. The state government incorporated the benefits of the latest technology to create a systematic structure that enables transparency in agricultural schemes such as the seed exchange programme.

According to data presented by the Directorate of Agriculture, over three lakh farmers from Jharkhand have already registered on the platform and are being distributed seeds at a subsidized price.

First of its kind collaboration

The Jharkhand government, in partnership with technology company SettleMint, was able to introduce a blockchain-based distribution platform for the farmers of the state.

The platform essentially keeps track of all seed supply distribution, right from issuing supply orders from the Directorate of Agriculture, placing the seed, to tracking the distribution chain. The distribution network extends from the state seed producing agency and is distributed to dealers, cooperatives, farmer producer organizations and directly to farmers. Blockchain platforms make it easier to keep track of the same and ensure that no form of theft occurs in between.

Earlier, farmers also used to complain about receiving fake seeds under the government’s seed exchange schemes and this problem would be effectively tackled through technology like blockchain. Commenting on the same, the Director of Agriculture and Horticulture said that “It is the highest priority of this government to make quality seeds available to the farmers at the right time along with filtering of middlemen, identification of the beneficiaries and creation of farmers’ database”.

Currently, over three lakh farmers are registered on this platform and around 30,000 quintals of seeds have been distributed to them. These include over 300 varieties of 30 crops distributed at subsidized prices between the kharif and rabi seasons.

Introducing the Blockchain system

Blockchain, in simpler terms, is a form of shared ledger system that records transactions and tracks assets without tampering with the data. Since it is a virtual system, it avoids the many errors that can occur in a system managed by humans. Thus reducing risk and incorporating a faster management system that is accountable and transparent. Blockchain also maintains a confidential nature that ensures that only permitted members have access to the stored information.

As reported by Money Control, every farmer has been registered on the blockchain network along with details like their Aadhaar number and mobile number stored on the platform. The farmers will then be updated with information about the seed distribution via the system after they have entered their personal one-time password (OTP).

In this way, the state will be able to keep an accurate record of where and how seeds are distributed across districts, along with additional information on the frequency, quantity and variety of seeds purchased by farmers. It creates a virtual database that improves micro-monitoring of horticultural schemes. SettleMint CEO Shahzad Fatmi also added that the adoption of the blockchain system in the agriculture sector would revolutionize the agrarian supply chains and make them more transparent and traceable.

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