Blockchain technology in agriculture Towards shaping the farming for future in NE India

Dr Lakshmi Dhar Hatai
Northeast India faces numerous challenges in ensuring food and nutritional security for its growing population. Northeast Indian agriculture faces major challenges due to hilly terrain, poor infrastructure, limited irrigation facilities, climate change, soil erosion, and shifting cultivation further degrade land and reduce productivity. Traditional farming practices, low adoption of modern agricultural technology, and pest outbreaks contribute to low yields. Farmers struggle with poor market access, limited credit, and weak institutional support. Lack of digital connectivity also hinder agricultural growth in the NE region.Key issues include the impacts of climate change, loss of biodiversity, and the spread of pests and diseases. Addressing these challenges requires innovation within the agricultural ecosystem to transform farming into an attractive and profitable enterprise, particularly for marginal and small-scale farmers.The Sustainable Development Goals (SDGs) offer a clear vision for agricultural development, and Information and Communication Technologies (ICTs) play a crucial role in accelerating progress toward these goals. Over the past decade, the rapid growth of ICT in agriculture has opened up new opportunities to tackle some of the region’s persistent challenges.Recent advancements-such as the increased use of mobile broadband devices, the Internet of Things (IoT), drones, smart networks, big data analytics, and artificial intelligence - have equipped agricultural stakeholders with powerful tools to enhance productivity and improve market access.
Blockchain technology is transforming agriculture by enhancing food safety through transparent and traceable information across the entire food supply chain. Its robust data storage and management capabilities enable precise traceability, which supports the development and implementation of technologies for smart farming and index-based crop insurance. This innovation marks a significant step forward in modern agricultural practices.Blockchain technology in agriculture enables comprehensive tracking of information throughout a plant’s lifecycle - from seed quality and crop growth to post-harvest distribution. This level of data transparency enhances the supply chain by addressing issues related to illegal or unethical practices and allowing quick identification of contamination sources in the event of a recall. The primary goals of adopting such technologies are to promote sustainability and ensure food security. With greater transparency, consumers are empowered to make informed purchasing decisions and often choose to support farmers and producers who follow responsible and sustainable agricultural practices.
Blockchain is a distributed, decentralized ledger technology that securely records and verifies transactions across multiple computers in a network. Each transaction is added as a “block” in a chronological chain, ensuring transparency, immutability, and resistance to tampering. Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. According to the World Bank Group, “Blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. It is best known for its crucial role in cryptocurrency systems but has many other applications”.Blockchain technology in agriculture refers to the application of decentralized, distributed ledger systems to securely record, manage, and share data across various stages of the agricultural value chain. It enables real-time tracking of agricultural products-from seed to shelf-by storing transparent, tamper-proof records related to crop production, processing, transportation, and distribution.This technology improves supply chain transparency, traceability, and accountability, helping address issues such as food safety, fraud, sustainability, and fair pricing. It also supports smart farming practices, efficient resource use, and access to financial services like crop insurance and credit through verified data.
Applications of Blockchain technology in NE agriculture involves integrating secure, decentralized data systems across the agricultural value chain. It starts with recording critical information such as seed origin, crop growth stages, and input usage on a blockchain platform. This data is then used to ensure traceability and transparency from farm to consumer, reducing fraud and improving food safety. Blockchain can facilitate smart contracts for automated payments between farmers, buyers, and suppliers. It also supports index-based crop insurance by verifying weather or yield data securely. Farmers can gain better access to credit and subsidies through verified transaction histories. Integration with IoT devices, drones, and sensors enhances real-time data collection and accuracy. Ultimately, blockchain empowers all stakeholders-farmers, processors, consumers, and regulators-by building trust and enabling more efficient, sustainable agricultural systems. To effectively analyse the key applications of blockchain technology in agriculture, its uses can be broadly categorized into four main areas:
· Smart Farming: Enhancing precision agriculture through real-time data collection, monitoring, and decision-making using blockchain-integrated IoT devices and sensors.
· Food Supply Chain: Ensuring transparency, traceability, and accountability throughout the farm-to-fork journey, helping to build consumer trust and reduce food fraud.
· Insurance for Agriculture: Enabling secure, transparent, and automated index-based crop insurance claims through smart contracts and verified data.
· Agricultural Product Transactions: Facilitating direct, secure, and fair transactions between farmers, buyers, and distributors, reducing intermediaries and ensuring timely payments.
Blockchain in agriculture can significantly benefit farmers of the NE region by improving transparency, efficiency, and trust across the agricultural value chain. It enables real-time tracking of produce from farm to market, helping farmers prove the authenticity and quality of their products. This traceability builds consumer trust and can lead to better prices for farmers. Blockchain reduces dependency on middlemen by facilitating direct transactions with buyers through smart contracts, ensuring timely and fair payments. It also helps in reducing post-harvest losses by improving coordination in logistics and storage. Verified data on farming practices can open access to premium markets and certification schemes. Moreover, blockchain records can support farmers in obtaining credit and crop insurance by proving their farming history and practices. Overall, it empowers small and marginal farmers with more control, security, and recognition in the agricultural value chain.
key advantages of blockchain technology in agriculture:
· Enhanced Traceability – Tracks the journey of agricultural products from farm to consumer, ensuring transparency.
· Improved Food Safety – Helps quickly identify sources of contamination during food recalls.
· Fair and Timely Payments – Enables secure, automated transactions through smart contracts.
· Reduced Middlemen – Facilitates direct transactions between farmers and buyers, increasing farmer profits.
· Access to Credit and Insurance – Provides verified data to support loan approvals and crop insurance claims.
· Fraud Prevention – Minimizes the risk of counterfeit products and unethical practices.
· Efficient Supply Chain Management – Improves logistics and reduces delays or wastage in the supply chain.
· Incentivizes Sustainable Practices – Allows consumers to support farmers using eco-friendly methods.
· Data Security and Integrity – Ensures that farm and transaction data cannot be tampered with.
· Empowerment of Small Farmers – Increases transparency, market access, and bargaining power for smallholders.
Disadvantages of blockchain technology in Northeast Indian agriculture:
· Poor Digital Infrastructure – Limited internet connectivity in remote and hilly areas hampers implementation.
· High Implementation Costs – Initial setup and maintenance are often unaffordable for small and marginal farmers.
· Low Digital Literacy – Many farmers lack the technical skills to understand or operate blockchain systems.
· Fragmented Landholdings – Small and scattered farms make data collection and system integration difficult.
· Limited Awareness – Farmers and local institutions often lack awareness about blockchain and its benefits.
· Lack of Skilled Workforce – Shortage of trained professionals to deploy and manage blockchain technology.
· Resistance to Technological Change – Traditional practices dominate, and adoption of new tech is slow.
· Policy and Regulatory Gaps – Absence of clear government policies for blockchain use in agriculture.
· Dependence on Middlemen – Entrenched middlemen systems resist transparency and digital disruption.
· Integration Challenges – Difficult to align blockchain with existing agricultural practices and local ecosystems.
Shaping the adoption of blockchain technology in Northeast Indian agriculture:
- Pilot and Seed distribution Projects: While Jharkhand implemented blockchain for seed tracking earlier, momentum is gradually spreading in northeast states that are now under consideration for similar pilots to improve transparency and reduce leakages in input schemes.
- Integration with IoT and Remote Sensing: Emerging projects are combining IoT sensors, offline mapping, and drone data with blockchain to create secure and tamper-proof agricultural records, even in low-connectivity zones.
- Offline Mapping Solutions for Connectivity Challenged Zones: Tools like mobile mapping apps help field agents collect and sync farm-level data later, enabling blockchain-based traceability in remote areas of the Northeast .
- Rising Role of NECTAR & Local Institutions: The North East Centre for Technology Application and Reach (NECTAR) is promoting agri-tech innovations, including pilot trials in traceability and data-driven farming systems, potentially including blockchain integration.
- Growing Interest from Agritech Firms and Startups: Although agri tech adoption is still low regionally, some startups are developing platforms for contract farming, logistics, and financial services with blockchain components to support smallholders.
- Government-Funded Technology Missions: National initiatives like Digital Agriculture Mission and Agri-Stack promote integration of emerging tech-IoT, GIS, AI-with blockchain-ready frameworks and unique farmer digital IDs.
- Capacity Building via Cyber Extension Services: Krishi Vigyan Kendras (KVKs) in NE States and elsewhere are building digital advisory (cyber extension) services and may increasingly pilot blockchain-enabled solutions for transparent record keeping.
- Use-Case Expansion from Traceability to Financing: Beyond tracking produce, interest is growing in using blockchain records to support credit access, crop insurance, and supply chain financing, especially when connected to verified farm data.
- Multi stakeholder Ecosystem Development: NE adoption hinges on PPPs involving government, research institutions, agri-tech firms, and FPOs to overcome barriers and create localized blockchain-enabled ecosystems.
- Slow but Steady Awareness Growth: Though current use is nascent, awareness about blockchain benefits-traceability, fraud reduction, direct market accessis gradually rising among policymakers, institutions, and farmers in the NE region.
Blockchain technology holds tremendous potential to transform agricultural supply chains by boosting transparency, traceability, and overall efficiency. Although still in its early stages, this technology promises to be a game-changer for the sector-enhancing accountability, minimizing risks, and strengthening consumer trust, particularly in Northeast India.Blockchain technology offers a promising pathway to modernize agriculture in Northeast India by fostering transparency, traceability, and efficiency across the farming value chain. By empowering farmers with secure data management, improving market access, and enabling innovative solutions like smart contracts and digital insurance, blockchain can address many of the region’s longstanding agricultural challenges. As digital infrastructure and awareness improve, embracing blockchain has the potential to shape a more sustainable, inclusive, and profitable future for farming in NE India, ultimately contributing to food security and rural development in this unique region.
The writer is Associate Professor and Head, Department of Agricultural Economics at  College of Agriculture, Central Agricultural University, Imphal