India Uses Blockchain Technology to Improve Coffee Trade

Last Modified:12 May 2020 17:26:59
India Uses Blockchain Technology to Improve Coffee Trade

Perhaps the day that Baba Budan smuggled coffee from Saudi Arabia to India, he did not know that the coffee industry in India will be intertwined with technology and will change that path for coffee makers and coffee drinkers. By manufacturing 5.2 million coffee bags last year, India was at the 7th place after Brazil, Vietnam, Columbia, Indonesia, Ethiopia, and Honduras. Moreover, now the Indian’s coffee board of directors intends to merge the coffee farmers with Blockchain technology by launching an electronic market based on technology.

Launching of the Coffee Purchase Software

On Thursday, the board of directors at the India’s coffee company launched the program for a Blockchain-based market in order to eliminate the countless middlemen in the India’s coffee market. Using Blockchain technology in the coffee market, was a new invention and at that time, Jose Dauster Sette, the CEO at the Nairobi International Coffee Organization launched a trial plan of this program. This program can reduce the number of middlemen by bringing coffee farmers to the consumer’s market and thus making coffee more affordable for the consumer and increasing the profit for the farmer.

Furthermore, many coffee consumers would like to know where coffee beans come from and how they were prepared. This program can realize this dream. The shareholders and activists in this trade such as coffee farmers, merchants, coffee makers, exporters, importers, and retailers must register in a platform. For example, the coffee farmer should record information such as where coffee was planted, product details, height, licenses, and other related information.

How Long Will This Project Take to Run?

Suresh Prabhu, India’s Industry and Commerce Minister, unveiled this program last September in New Delhi. However, this project took six months to become operationalized; why?

There were more than 20 stockholders from different countries that the board of directors had to let them know and then test the platform. According to the report by the India’s business publication, the program will be launched for a limited number of manufacturers for four to five months in a trial run. If the test is successful, then the application will be distributed among all the manufacturers of the country. According to Business Line, there are 360,000 coffee manufacturers in India.

Reducing Farmers’ Toll

By merging Blockchain in the coffee industry, there will be an image of India’s coffee brand, and by reducing the dependency of farmers to current middlemen, their direct access to buyers will increase. Consumers can easily find the best coffee manufacturer with an affordable price. Apparently, India is the only country in the world where the coffee plantation is done in the shade and farmers sow them by hand and without the use of any device, and it is dried under direct sunlight. India’s coffee is one of the kind of coffee in the world that is manufactured by small and tribal farmers in a traditional way, and it is very valuable in the global market and is sold as premium coffee. With all this, the share of farmers in the final coffee yield is very little. The Blockchain-based marketplace will bring transparency to this business by tracing the coffee production process from its bean to the coffee cup. There are countless consumers that want to try the real taste of Indian coffee, and pay a reasonable price for it. All of these will be available with the Blockchain technology because the development of merging of the Blockchain technology in the food and medicine industry will lead to transparency and will include all the mentioned advantages.