Yesterday India’s Ministry of Commerce & Industry announced the launch of a blockchain based marketplace app for coffee trading. This pilot project aims to provide coffee farmers with a fair price and increase traceability and transparency of the product. The Coffee Board of India developed the app with digital commodity platform Eka Plus.
As consumers are increasingly ethically and environmentally minded, food traceability is in high demand. Particularly for products such as rice and coffee, which are traditionally hard to trace. Today’s announcement claims India’s coffee farmers are mostly small businesses who earn meager profits. This is in part due to dependence on intermediaries between the farmers and buyers.
By creating “bean to cup” traceability, the blockchain marketplace promises to reduce the middlemen in coffee trading, thereby increasing earnings for the farmer. As information on the blockchain is immutable, use of the marketplace can build trust between suppliers and traders.