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Use of blockchain to solve select issues of

Indian farmers
Cite as: AIP Conference Proceedings 2148, 030050 (2019); https://doi.org/10.1063/1.5123972
Published Online: 03 September 2019

Vinay Surendra Yadav, and A. R. Singh

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AIP Conference Proceedings 2148, 030050 (2019); https://doi.org/10.1063/1.5123972 2148, 030050

© 2019 Author(s).
Use of Blockchain to Solve Select Issues of Indian Farmers

Vinay Surendra Yadav1, a) and A. R. Singh1, b)

1
Department of Mechanical Engineering, National Institute of Technology Raipur, India

a)
Corresponding author: vinaysyadav93@gmail.com
b)
arsingh.mech@nitrr.ac.in; amitrajsingh1@gmail.com

Abstract. Agriculture is responsible for feeding the whole population and farmers are its main stakeholder. However, the
socio-economic condition of farmers in most countries is not good and India is not an exception. This could be seen in
terms of very low per capita income of Indian farmers. Farmers often face various issues in practicing their profession
which affect their status quo. To this effect, this paper identifies fourteen such issues using exhaustive literature search
and Delphi Technique. These issues are categorized under four head namely lack of proper information, beneficiaries
schemes, low price of agricultural produce and lack of transparency and traceability in agri-business. Further to handle
these select issues; a blockchain based information system is proposed.

INTRODUCTION
Agriculture in any country has its unique importance. It is the sector which is responsible for feeding the whole
population. In fact, 58% of Indian population relies on agriculture directly or indirectly for their living [1]. However,
its contribution to Indian GDP is merely around 17% [2]. The stakeholder of agriculture include farmers,
agricultural suppliers, food processor & distributors, consumers, national & international agricultural bodies, NGOs,
government and its allied institutions etc. But the whole agriculture sectors moves around farmers and thus farmers
could be considered as one the main constituents. However, the socio-economic condition of farmers in most
countries is not good and India is not an exception. Some of the issues faced by farmers include lacks of proper
finance, low price of agricultural produce, lack of guarantee to get minimum support price, lack of information
about weather condition and scientific agricultural method of farming etc. In spite of such hardship, condition of
Indian farmer’s get worsens and their per capita income is very low. The situation is even worse for farmers in some
state of India like Maharashtra, Telangana, Karnataka, Madhya Pradesh, Andhra Pradesh, Chhattisgarh etc. which
registered highest number of farmer’s suicide cases in 2015 [3]. To counter such situation, The Government of India
has taken many good initiatives and has launched various schemes. However, implementation of such schemes is
often tampered due to corruptions and others reasons. Recently the Government of India has planned to double the
income of farmers by 2022. To make this possible in reality, huge reforms in agriculture sectors are needed where
technology need to be embedded with traditional farming to reap the benefit of intelligent system existing in today’s
world. To this effect, this paper first explores the problems of farmers and then suggests the corresponding measure
using one of the destructive technology of today’s world in form of Blockchain.
Blockchain is shared, cryptographically unaltered distributed ledger for recording the history of a digital
transaction [4]. Each member (stakeholder) of blockchain stores copy of all transaction ever executed though the
given system. But no single node/party is owner reflecting that it is not a centralized system. Since each activity in
the system is visible and auditable by all members, thus this type of decentralized system creates the foundation of
trust. For any transaction to happen, a consensus algorithm is followed means consensus of nodes that agree upon

1st International Conference on Advances in Mechanical Engineering and Nanotechnology (ICAMEN 2019)
AIP Conf. Proc. 2148, 030050-1–030050-9; https://doi.org/10.1063/1.5123972
Published by AIP Publishing. 978-0-7354-1893-6/$30.00

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the issue is required which makes ensure its validation and authorization. Also blockchain based system doesn’t
require a mediator or third party for transaction leading to lowering transactional cost. These transaction are also
irreversible and need of any public and private institution mediator is avoided which makes the system more
efficient. The member involved need not to trust each other than system and code which are full proof.
In simple terms, suppose there is a village having finite number of people and consider a case where transaction
is to be done between two people or parties in the village. For this transaction to happen everybody in the village
comes to a common platform and transaction happens in front of everyone. For record, everyone also take a note of
this transaction in their notebook. Now in future or anytime, if any of two concerned parties between whom this
transaction has taken place can’t claim any wrong information or deny the transaction because everyone in the
village has the original note about the transaction. Also to forge the information, the fraudulent has to change the
note of everyone’s copy in the village which is not possible in practical circumstance. In similar fashion, suppose
these transactions happen through computers and all the villagers are different computers where the record is stored.
Also these transactions are cryptographically secured, authenticated and verified by anonymous approvers (also
called as miners). This is what happens in actual blockchain environment where each information/records are stored
in blocks and everybody connected to the network has this copy. Any further transactions is added in the new block
and linked with previous blocks. Since it is cryptographically secured and thus can’t be mutable by any fraudulent.
Earlier in the year March 2017, NITI (National Institution for Transforming India) Aayog of India published a
draft on doubling the income of farmers by 2022. Indian Prime Minister, Shri Narendra Modi also repeated the same
earlier in year 2018 at the occasion of interacting session with farmers and also quoted to allocate the significant
budget for the same. For this, various schemes of government are already running such as Pradhan Mantri Krishi
Sinchai Yojna for irrigation, Pradhan Mantri Fasal Bima Yojna for crop insurance and facilities like Kisan Credits
Cards, Soil Health Cards, quality fertilizers in form of neem coated Urea, Mobile services to farmers and
Government Helpline for environment conditions, farming methodologies and information about most of the
farmers needs etc.
Many schemes of government are running but their implementation and monitoring is big headache for
government. Blockchain could be a useful technology in such instances for successful implementation and
monitoring of government schemes. Various agri-practices like certification of quality crops, registering land
records, buying-selling of crops and crop insurance can be put on blockchain based system for efficient management
resulting in transparent system. Hence each of these activities could be tracked and monitored by government and
subsequent measure could be adopted by concerned stakeholder. Government of Andhra Pradesh has started two
projects (i.e. land records and vehicle registration) on blockchain technology. This was driving force in allocation of
land to build Amravati, the new capital of Andhra Pradesh. Using these technologies, 24000 farmers from 22
villages have bartended their assets with government in from of 53000 acres land. The government along with a
private firm Zebi performed this task of handling 83000 records to the database by March 2018.
The next section explores the relevant literature about use of blockchain in agriculture while section three talks
about select issues of farmers and their solution through blockchain-based mobile app. Finally section four put
forward the concluding remark of the proposed work.

LITERATURE REVIEW
Researchers and industries around the globe have worked a lot in the field of agriculture to address the farmer’s
issues through innovative farming methodologies, advanced technologies, improved seed quality and other means
etc. NITI Aayog signed a Statement of Intent with IBM to develop better crop yield prediction model through
Artificial Intelligence on 4th May 2018. Under this IBM would provide real time advice and suggestions to the
farmers of selected district across India. Some notable contribution to agro-food supply chain farmer’s issues could
be found in the work of various authors [5-9]. Mahapatra and Mohanty (2018) [7] studied Indian National Program
on Food Security. The authors discussed various issues related to procurement, production, finance, storage,
distribution, transportation and organization. Further, authors proposed framework for effective implementation of
above program using cloud based system.
Digitization is one the way to tackle some of the farmer’s issues. To this effect, need of ICT in agriculture field
was emphasized [10]. Some researchers advocated the use of Big Data Analytics [11], cloud based system [7], GIS
based system [12], mobile based information system [13] and investigated the same. Digitization is also found to be
a good solution for traceability of provenance. Bastian and Zentes (2013) [14] emphasized on the need of supply
chain transparency as pre-requisite for sustainable agro-supply chain. The ongoing projects like TraceRegister, m-

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fish and ThisFish are few examples which captures and convert real world physical component into digital world
data along agro-food supply chain for monitoring the flow of food items. But accountability is the main issues since
the system is centralized making it fell prey to disturbance if the central agency is not functioning properly.
However Blockchain is shared, cryptographically unaltered ledger which make it immutable to fell prey to any fault.
Provenance is UK based company which conducted a Pilot Study using blockchain along with smart tags and mobile
phones in early 2016 to track tuna journey from its catching to feeding consumers. The study made it possible for an
Indonesian firm to convert their business of tuna fish into great asset by providing digital identification which could
be easily verified through open registry. Similar provenance technology was utilized by Everledger for tracking
wine in case of any fraudulent sales.
Caro et al. (2018) [15] developed a blockchain based traceability mechanism for agro-food supply chain in form
of AgriBlockIoT. The authors successfully integrated IoT devices for consuming and producing digital data along
the supply chain. They made use of use-cases to test their blockchain implementations. The implementation was
done through two platforms namely Hyperledger Sawtooth and Ethereum. Tharun Mohan (2018) [16] also proposed
similar traceability mechanism using blockchain technology. The model was developed on Hyperledger Sawtooth
Platform and compared with the traditional information mechanism and global food tracking.
Blockchain technology could be quite useful in case of providing banking and finance solutions to farmers.
Atlas, a blockchain based start-up is one such example. IBM along with Twiga Foods has launched blockchain
based micro lending platform for farmers and business in Kenya. The pilot results of their work resulted in increased
profits of food vendors. Chinka (2014) [17] reviewed the financial challenge posed in agriculture by the farmers. For
this, a blockchain based technology was proposed for improving such problems. The study was conducted in context
to developing nations in Africa.
Haveson et al. (2017) [18] explored the blockchain based uses cases in agriculture sector for crop insurance, food
traceability and micro-finance and digital payments. They studied smart contract based blockchain technology for
crop insurance in countries like China, Mexico, Kenya, Russia and India. They also developed solution for crop
insurance in form of SmartCrop, which is smart contract based blockchain technology helpful to the farmers in
make better decision about crop insurance in case of any unfortunate conditions like disasters etc. Tian et al. (2017)
[19] developed a real time traceability mechanism for agro-food supply chain using HACCP (Hazard Analysis and
Critical Control Points), Internet of things and blockchain. The system was built on BigchainDB to provide
transparency, openness, neutrality, security and reliability to all parties of agro-food supply chain.
Tian (2016) [20] studied the development and utilization of blockchain technology and RFID in agriculture
sector and gave its advantages and disadvantages. A framework was also proposed for the same. Tse et al. (2017)
[21] proposed to use blockchain based information systems for the food chain in China. The authors considered
blockchain technology as worthy in tracking, auditing and monitoring food supply chain. They stated blockchain as
beneficial to manufacturers, customers and supervision departments (government agencies) and found it useful in
enhancing the efficiency of supply chain.
Various challenges of agriculture have been studied by researchers while few of them had mechanism to deal
with these challenges. It was found that digitization and traceability were suitable mechanism to deal with few of the
agri-problems. Further, blockchain has been observed as a potential technology which could have wide application
in agriculture sector. To this effect, this paper proposes a blockchain based information system to deal with select
issues of farmer’s community.

SELECT FARMER’S ISSUES


The issues faced by farmers were taken from exhaustive literature search through various article and report while
these issues were finalized through Delphi technique. The idea of creating Delphi methodology goes to Olaf Helmer,
Norman Dalkey and Nicholas Rescher of the Rand Corporation in 1950-1960s. This method allows experts to come
together and work towards a mutual agreement through conducting a series of questionnaires. In each subsequent
round the feedback of the previous round are provided to expert so that they can adjust their thinking to come to a
final conclusion. This iterative process stop based on stopping criterion like reaching to a consensus, number of
round and stability of the results etc. The Delphi technique finds a wide range of application from forecasting,
prediction, policy making and decision making (in business, militaries) etc. Since our problem was related to
decision making about finalizing farmer’s issues which could be solved by blockchain. For this purpose, a Delphi
Team was formed which could iteratively discuss and finalize the farmers issues through reaching consensus. The
Delphi team included four farmers, two professors, two members of local Agriculture Produce Marketing

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Committee (APMC) and one research scholars. An APMC is established by state government and acts as marketing
board in India. The research scholar was responsible for organising meeting and taking down all the notes of
meeting along with smooth conduction of Delphi process. At first a total of twenty one farmers issues were collected
through literature review and brainstorming with few selected person of Delphi team (as shown in Table 1). Only
those issues were collected which could be solved through implementation of blockchain in agricultural practices. A
set of questionnaire was prepared and distributed among the team for understanding their viewpoint. The responses
for the first round Delphi was analysed which resulted into elimination of five issues. Further a second round was
conducted to reach the consensus resulting into final fourteen issues. The roadmap of the research work is depicted
in figure 1.

Literature Collection of select farmer’s Brainstorming with Delphi


Review issues Team

Delphi Technique
x Round 1
x Round 2

Finalization of select farmer’s


issues

Traceability Smart-contract based


Monitoring
Blockchain-based
Mobile App
Informative &
Expert Advice APMC & Market

Local Database

To Government Agency for


Further Processing

FIGURE 1 Roadmap of the Proposed Work

Issues Faced by Indian Farmers


As the farmers are mainly dependent on agriculture and agriculture are mainly dependent on natural resources.
They often face many problem due irregular weather conditions, ill-efficiency of market conditions, and lack of
guarantee to get right price for their agricultural produce. All such issues have ill effects on socio-economic
conditions of the farmers. Few of such issues are tabulated in Table 1.

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TABLE 1 Select Farmer's Issues

Farmer’s Issues Sub-category References


Lack of Proper Information Weather Conditions The outcome of Delphi
process
Certified Seeds The outcome of Delphi
process
Recent advancement in agro-technologies The outcome of Delphi
process
Supply-demand mismatch data Patidar et al. (2018) [8]
Beneficiaries Schemes Improper disbursement of subsidies The outcome of Delphi
process
Lack of finance schemes Odeomene (2012) [22]
Lack of proper monitoring of crop insurance The outcome of Delphi
process
Less price of agriculture produce Fault in APMC structure (restricted access, Gardas et al. (2019) [9];
licencing hurdles, increased market charges, Gandhi (1999) [23]; Hegde
and Madhuri (2013) [24];
Ganeshkumar et al. (2017)
[25]
Lack of certification for quality produce The outcome of Delphi
process
High cost agri-produce marketing Gardas et al. (2019) [9]
Unsustainable production & agro-activities Vincent (1990) [26],
Godfray et al. (2010) [27],
Foley et al. (2011) [28],
Beddington et al. (2012) [29]
Small and fragmented lands Rajkumar (2010) [30];
Department of Agriculture
2015 Agricultural statistics-
2015. New Delhi:
Government of India [31]
Lack of transparency and Involvement of large number of middleman Patidar et al. (2018) [8];
traceability in agro-business Hegde and Madhuri (2013)
[24]; Ganeshkumar et al.
(2017) [25]; Rajkumar
(2010) [30]; Shukla and
Jharkharia (2013) [32];
Lack of guarantee to get Minimum Support The outcome of Delphi
Price process

Solution
The above problems of farmers could be solved through integration of blockchain into agri-practice. The most
suitable way to perform this integration is through development of blockchain-based mobile app since most of
farmer’s household own a smartphone. Such app could be broadly designed under three modules as shown in figure
2. The first module is meant for traceability through knowing the provenance resulting into a transparent system.
The second module is meant for monitoring which is smart-contract enabled, thus resulting into a trust worthy and
smooth environment for agro-activities. The third module is meant for providing valuable and correct information
for different agricultural activities. All three modules are depicted in Table 2.

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TABLE 2 Modules of Blockchain-based App

Blockchain-based Mobile App


Traceability Smart-contract based monitoring Informative
Quality of Seeds Crop Insurance Weather condition & expert
advice
Certification of Quality Optimal sharing of land Supply-demand data
produce
Disbursement of subsidies Selling-buying mechanism Useful financing schemes
Minimum Support Price Sustainable production activities Knowledge of recent
technologies, tools and
techniques

1. Traceability: The quality of seeds is one the major driving factors for better yield. Through the blockchain
based system the seeds could be traced for its provenance resulting into increased probability of procuring
better quality of seed and hence results in higher yield. Similarly the agriculture produce could be certified
through concerned agencies and put on blockchain system. This would not only result into better price for
farmer’s works but also end consumer will get quality products. Such systems could result into better food
ecosystem for sustainable development of country. Tian et al. (2017) [19] developed a real time traceability
mechanism for agro-food supply chain using HACCP (Hazard Analysis and Critical Control Points),
Internet of things and blockchain. Other notable works in terms of food traceability could be seen in the
works of various authors [15-16]. In similar way, the disbursement of government subsidies and minimum
support price could be regulated.
2. Smart-contract based Monitoring: Many-a-times, crops are damaged due to natural and man-made
calamities and other unknown reasons in spite of all the hard work put by the farmers. Such situations are
unfavourable for farmers leading to suicide in some cases due to unable in paying loan. However such
situations could be prevented through effective crop insurance mechanism. Though such schemes already
exist but mostly farmers are not benefitted due to lack of transparency in current system due to corruption.
Therefore, a mechanism is need which could overcome such instances. Smart-contract is suitable
mechanisms which avoid any services of middleman and gets activated only when rule of contract is
followed. Crop insurance could be put on smart-contract to relief the farmers completely from any
unfortunate situation. In India, mostly farmers own small piece of land resulting in inefficient agricultural
practices due to various constraint. For this, a blockchain based smart-contract could be designed for
optimal sharing of land for its effective use. Smart-contract based blockchain would be most efficient for
selling and buying resulting in win-win situation for all stakeholders for agri-supply chain. Also if the
agricultural practices are traced through blockchain based app, if any unsustainable activities are found, the
subsequent action/correction may be suggested in real time.
3. Informative: Farmers should have access to information related to weather condition well in advances so
that they could plan their activities accordingly and become prepared for any unfortunate incident as well.
Also there arise few occasion where farmers are clueless about what to do next, at such instances expert
advice is also needed in real time. Such information could be delivered to farmers in real time using a
blockchain based mobile app. Also such app will be efficient in providing any kind of data beneficial to
farmers like information about various government schemes for finance and other activities, demand of
market, knowledge about recent technologies and scientific method of farming etc. However such app
could be embedded with expert advice through proper means to make more beneficial to the farmers. The
conceptual schematic of such system is shown in figure 2.

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Farm

Weather Traceability
condition of agro-
from activities
Metrological
Farm Department Farm

Blockchain-
based Mobile
App

Farm
Farm
Expert Monitoring
agro- of agro-
activities activities

Farm

Local Database APMC & Market

To Government Agency for


Further Processing

FIGURE 2 Conceptual Schematic of Blockchain-based Mobile App to deal with Select Issues of Farmer’s Community

CONCLUSION
In this work, a blockchain based mobile app is suggested to tackle select issues of farmer who are heart of
agriculture. For this, the select issues were identified through exhaustive literature review and Delphi technique. To
handle the identified farmer issues, a blockchain based mobile app is proposed which is further categorized into
three module namely traceability, smart-contract based monitoring and informative system. Such proposal may be
implemented by government and its allied agency to improve the farmer’s status quo.
The present work is only proposal for deal with select farmer’s issues. However in actual practices some more
issues may be arising which need to be incorporated in the proposed blockchain-based system while implementation
phase. Also trials on actual application may be performed and corresponding feedback may be embedded to update
the system. We intend to perform such task in near future.

ACKNOWLEDGMENTS
We are highly thankful to Dr. Sarsij Tripathi for his valuable insight which helped to improve the quality of our
work. We are also thankful to Delphi Team member which constituted of four farmers, two professors, two
members of local APMC for giving their opinion to finalising select farmer’s issues. We also thank them for sharing
their experience which helped us to get better understanding of various agro-practices.

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