Empirical Economics Letters, 22 (Special Issue 1): (January 2023) ISSN 1681 8997

https://doi.org/10.5281/zenodo.8266156

Indian Agriculture Sector and Blockchain Technology: A

Systematic Review Envisaging Business Opportunities
Satish Chandra Pant*
Department of Agribusiness Management
Doon Business School, Dehradun, India

Pooja Kansra**
Mittal School of Business, Lovely Professional University
Phagwara, Punjab, India

Abstract: Agriculture sector in India is in the transition phase, witnessed various

issues in the past, such as lack of transparency and accountability to farmers etc., to
overcome these issues, understanding of process, operations, and contemporary
practices in the area of blockchain is required to strengthen farm businesses and
farmers‟ income. Hence, this study is an attempt to synthesize the systematic review
highlighting issues, and emerging domains from the extant literature and provide a
blueprint for further study/research in the area of technological advancement and
Agribusiness opportunities to various stakeholders for better utilization of the
blockchain operations, its use and scope.
Keywords: Blockchain, Agribusiness, Agriculture, Business
JEL Classification Number: O14, Q13, Q16

1. Introduction
In India, small and marginal farmers constitute a large group comprises nearly 80% of
farmers as indicated by Mourya and Mehta (2021). Fischer and Qaim (2012) found that
despite of several developmental programmes, small farm holder farmers face several
constraints that obstruct them to receive advantage of market opportunities. Although,
various institutional interventions such as cooperatives, self-help groups, commodity
interest groups, farmer producer organization (FPOs) etc. have been taken to link them in
the private or public market in India that were well examined by Basavaraj et al. (2022).
Still, challenges are reflecting worrisome picture, such as, study of Jaiswal et al. (2019)
found that returns are not matched with the hard work and investment done by farmers due
to large number of intermediaries in the chain, Mourya and Mehta (2021) investigated that
nearly 90% farmers are dependent on monsoon, 55% of total cultivated land is rainfed,
85% land is prone to disease, and Fischer and Qaim, (2012) found that farmers‟ share in

*
Corresponding author. *Email: fdp20satishchandrap@iima.ac.in, **Email: pkansra@gmail.com
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 22

consumer rupee is minute, 30 % farmers are aware about government schemes of which
only 7% of farmers are getting benefits, and access of farmers market capabilities are
problematic to promote rural development and poverty reduction across the globe.
Although, several challenges in agriculture have been reported by researcher, Yadav and
Singh (2019) have reported wider application of blockchain technology in agriculture
sector. In fact, blockchain is seen as revolutionary solution by Ghode (2020) to address the
existing challenges on immediate basis with low-cost technology. Several studies such as
Maslova (2017), Clercq et al. (2018) and Zhao et al. (2019) reported several opportunities
such as expedite smart contracts between farmers and consumers in a prepay mode,
simplify deliveries, create transparency, reduce the fraudulent activities, improve
efficiencies, increase farmers share in consumer rupee, enhance food safety, and further
reduce transaction time in the supply chain are being addressed by the blockchain
technology.

1.1. Blockchain Technology

Kamilaris et al. (2019) defined blockchain as a digital transaction record, maintained by a
network of computers that are not relying on a trusted thirty party. Borah et al.,
(2020)suggested that in blockchain, every transaction is disseminated through network of
computers, and validated by other computer node in the network, the transactions further
stored in a supply chain which can‟t be tempered and act as decentralized distributed
ledger technology (DLT). It is also described as a distributed public record maintained in
various nodes, every node has indistinguishable duplicate records which cannot be
tempered or delete by L.B., (2022), and facilitate quick transfer of data in view of Rathee
(2020). It works on accountability, transparency, flexibility, availability, usability,
sustainability etc. The technology had become famous since 2008 when Santoshi
Nakamoto started publicly accessible, secure blockchain network of cryptocurrency
bitcoin, reported by Dave et al. (2019).
1.2. Blockchain in Agriculture
Meena (2022) investigated Blockchain technology has a potential to track agricultural
production and post production activities such as plant growth, seed quality, package of
practices, post-harvest operations till produce reaches consumers doorstep with greater
transparency. Kamilaris et al. (2019) reported agriculture and food supply chain, two major
areas in harnessing the blockchain technology and its potential and Dujak and Sajter,
(2019) reported the feasibility of the same for small organizations across the globe for
various farm operations.
Scholars such as Shivendra et al., (2021), L.B. (2022), Hilten and Wolfert (2022) found
Blockchain as essential while ensuring traceability in agriculture and food supply chain,
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 23

and enables the tracking of food supply from farm to table to safeguard food safety and
quality. Madhu et al., (2021) expected that these smart technologies would allow farmers
to connect directly to the buyers without taking many intermediaries in the chain for better
price discovery of farmers.
Indeed, Nayal et al., (2021) found blockchain in agriculture as a new and emerging area
which deal with minimizing anomalies in the agriculture sector as cited by various studies
such as Dujak and Sajter, (2019), Shivendra et al.(2021), and L.B. (2022), but this study is
an attempt to systematise scientific knowledge based on a systematic literature review
(SLR) in the context of Indian agriculture and blockchain technology which is so far not
studies in the best of my knowledge. Hence, the following research questions are
considered for the study.
RQ 1. What are the current issues addressed by blockchain technology in Indian
agriculture?
RQ 2. What are the major domains envisaging agribusiness opportunities in the
area of Blockchain in agriculture?

2. Methods
In order to address research questions, the study follows Preferred Reporting Items for
Systematic Review and Meta-Analysis (PRISMA) which is well-established approach to
conduct systematic review and has been adopted in several systematic literature reviews
synthesised by Anuga et al. (2020), Martinho (2021), Page et al. (2021), Abbasi et al.
(2022), Macusi et al. (2022), and Maffezzoli et al. (2022).

2.1. Data
SCOPUS database in consistence with previous study of Silva and Moreira (2022) was
selected as the database is considered as accurate, consistent, and largest source for solid
research. The search was performed under the PRISMA guidelines (see Figure 1) with
keywords "Blockchain" AND "Agriculture" AND "Business" AND “INDIA” in the article,
titles, and keywords. Total 30publications from Scopus were retrieved under all subject
areas. In addition, 8 relevant publications were also included from google search. The
search was performed on September 5, 2022.
2.2. Data Cleaning
Further, preliminary screening of the data was conducted wherein 7 documents were not
found relevant hence removed for further action. In the next stage, 4 documents wherein
Indian context was not reflected and was also removed from the final database. Therefore,
after careful preliminary screening, the dataset was further reviewed wherein the title,
keywords and abstract of all the reference database was meticulously read by the authors
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 24

independently to ensure the relevant content. Based on common consensus of the authors
results not related to the area of study were excluded in view of the study of Taddeo et al.
(2019) to prevent „false positives‟ in the research process as described by Linnenluecke et
al. (2020). This step resulted 23records as reference database for the study (Figure 1).
Figure 1: PRISMA 2020 flow diagram

Identification of studies

I
d
e Records identified from*: Records removed before
n Database screening:
ti
fi Scopus (n=30) Not related field (n = 7 )
c
a
ti
o
n
Records screened Records excluded based on
(n =16 ) eligibility.
Paper without Indian context (4)
Paper without DoI (3)
S
c
r Records excluded based on
e Reports sought for retrieval
(n =15) manual intervention after
e reading the full paper
n (n=1)
i
n
g
Reports assessed for eligibility
(n = 15)

I
n Studies included in review(n = 15)
c Other studies included from Google
l scholar database (n =8 )
u
Total studies in review (n=23)
d
e
d

3. Result and Discussion

Analysis of screened literature reveals that out of 23 selected documents, maximum
contribution lies in the conferences (table 1) which shows the emergence of the topic in its
nascent stage in line with the study of Dave et al. (2019). Further, table 2 reveals that
majority of the studies are qualitative in nature, two studies are having mixed method
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 25

approach and only one study is of quantitative in nature. Result depicts that majority of the
studies are in the conceptualization stage, and focusing on better agricultural supply chain
reported by Borah et al. (2020), Dutta et al. (2020), Eashwar and Chawla, (2021), Nayal et
al., (2021), Sudha et al.(2021), and Sharma et al. (2022). Further, fair and remunerative
prices for farmers produce as important aspects are found in the study of Harshavardhan et
al. (2019), Jaiswal et al., (2019), Yadav and Singh (2019), Madhu et al. (2021), and
Sharma and Singh (2022), farmers distress reported by Hari et al., (2021), Sharma and
Singh (2022), and provision of credit facilities are reported by Nadeem et al.(2020), Sathya
et al. (2021), and Shivendra et al., (2021). In addition, food quality, safety and traceability
are very important issued highlighted by Malarvizhi, (2019), Borah et al. (2020), Dutta et
al. (2020), Nadeem et al. (2020), and Shivendra et al. (2021).

Table 1: Main information about final documents selected for review

Document Types Number Document Types Number
Article 5 Conference paper 12
Book chapter 4 Review 2

Table 2: Brief details and major findings of selected studies

Author(s) Research Problems Research Research Major findings
name type approach
Eashwar and Architecture of agri Qualitative Literature “Blockchain integrates the production and
Chawla ecosystem to integrate review food distribution network, to ensure
(2021) agriculture with food transparency, security, customer
supply chain engagements, and satisfaction for different
stakeholders.”
Jaiswal et al. Issue of low returns among Qualitative Conceptual Proposed a conceptual framework for
(2019) farmers trustworthy and incentivized trading of food
grain for better returns to farmers.
Shivendra et Issues in agri supply chain Qualitative Conceptual Study provides a supply chain framework for
al. (2021) better crop and price traceability for
stakeholders and minimise intermediaries
Sathya et al. Issues of traceability wrt Qualitative Conceptual Study suggests a framework of uses of smart
(2021) origin, buyer, seller, contract on Ethereum platform for reducing
farmers etc of food supply chain inefficiencies.
products in the existing
system.
Madhu et al. Issues of lack of Qualitative Conceptual Blockchain based applications may become
(2021) remunerative returns frontline model for transparent and instant
transaction.
Dutta et al. Identification of emerging Qualitative Literature Food safety and quality, authenticity, and
(2020) sector Review identity are much focused sector
Nadeem et Issues related to food Qualitative Case based Innovation linked with blockchain in the
al.(2020) safety information, food agriculture cultivating process to
supply chain and crop comprehend
quality
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 26

Table 2 continued
Borah et al. Lack of efficient agri supply Qualitative Conceptual Proposed a model FARMAR for
(2020) chain amid large transparency to farmers, and food quality and
intermediaries and lack of safety for consumers in the agri supply chain
information
Yadav and Low per capital income of Qualitative Conceptual Integration of blockchain into agri practices
Singh (2019) farmers. to provide smart contract based monitoring
for better price realization and transparency
Malarvizhi Sustainability in Agriculture Mixed Content Use of blockchain can improve the entire agri
(2019) amid skewed monsoon method analysis value chain for sustainable system
Ahamed and Issues related to Counterfeit Qualitative Conceptual Use of Blockchain gives trustworthiness to
Vignesh market in traditional Agri producer and consumer.
(2022) supply chain
Mukherjeeand Lack of smart agricultural Qualitative Conceptual Blockchain can enhance crop quality, yield,
Pradhan practices irrigation management, transparency, and
(2021) trustworthiness in the system.
Sudha et al. Issues of poor agriculture Qualitative Literature Blockchain can ensure protection of farmers
(2021) supply chain. review from being cheated for low price and engage
them in a smart agri supply chain.
Reddy et Huge price gap between Qualitative conceptual “Blockchain in agriculture increase economic
al.(2019) farmer and retailer due to efficiency, manage supply chain, access of
intermediaries. information on a secure, shared and
transparent platform.”
Nayal et al. Issues of supply chain Quantitativ SEM Blockchain technology can enhance the
(2021) performance e sustainable supply chain performance of agri
food sector in India
Seranmadevi Lack of awareness on Mixed Factor Expanding agriculture business requires
et al. (2022) blockchain technology Method Analysis adoption of advance technology operations.
among farmers
Sharma and Supply of low quality and Qualitative Case study Blockchain can improve the agricultural
Singh (2022) spurious inputs are production vis-à-vis farmers condition, hence
increasing cost. plays key role in reducing the suicidal rates
among farmers in India.
Sharma et al. Issues in Agricultural supply Qualitative Interpretive Countries Policy are significant factor
(2022) chain structural enabling adoption of blockchain technology
modelling in agriculture supply chain.
Hari et al. Uncertain producers crop Qualitative Conceptual Suggested a framework where farmers will
(2021) production and earnings be able to fetch fair price to ensure
leads to loss and suicide in profitability.
some cases in India
Dave et al. Lack offacilitation to Qualitative Conceptual Blockchain may support in mobilization of
(2019) farmers in funding, funds, and other facilities promptly for
transportation, transactions efficient agri operations.
etc.
Shrivastava Lack of provision of Qualitative Conceptual Suggested “new generation agricultural
and Pal technologies for easy marketing system framework” which focuses
(2019) operations in agricultural on farm supply chain and marketing
marketing intelligence.
Khanna et al. Identification of problems in Qualitative Conceptual Blockchain enabled model ensure food
(2022), Agri supply chain model safety, traceability, efficient supply chain
management, and provides technical
solutions to the industry and academia.
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 27

3.1. Issues highlighted in the study

The major issues identified from analysis of the extant literature is categorised under three
heads:
a. Transparency issues: Transparency in supply chain has been identified as one of the
major issues across the literature synthesised by Dutta et al. (2020), Eashwar and Chawla
(2021), low awareness on crop insurance schemes and corruption in disbursement of
insurance to its beneficiaries is highlighted by Yadav and Singh (2019) in the literature
resulted unfavourable conditions to farmer. Studies conducted by Dutta et al.
(2020)suggest tracking of status, automated data analysis activities in the blockchain can
enhance the transparency. Study of and Yadav and Singh (2019) considered blockchain as
pre-requisite to a sustainable agro supply chain and thereby increase the performance of
farmer and other stakeholders in the supply chain.
b) Food quality and safety issues: Yadav et al. (2020) highlighted Food safety as a
concern among consumers as todays‟ consumer drives through sustainability. Khanna et al.
(2022) found food fraud, contamination and adulteration of food items as highly cited
issues in the news, Shivendra et al. (2021) in a study found that farm goods are exchanged
across the platforms, as a result increases the chance of contamination during multiple
handling of produce, and Yadav and Singh (2019) highlighted high demand of food
provenance among stakeholders to trace the origin of food products. `Therefore,
organizations are bound to incorporate interventions to reduce contamination in multiple
stages. Wadke, (2020) reported that Sahyadri Farmers Producer Company Ltd., one of the
largest farmers collective in India, has started implementing Blockchain technology for full
traceability of its products from farm to fork, hence from farmer to consumer, one can
trace the asset in line with the study of Borah et al. (2020), hence, blockchain is one among
other emerging technology having potential to reduce such issues and make supply chain
more efficient and flowless as per the consumer demand.

c) Farmers remuneration: The problem of low returns to farmer due to multiple

intermediaries is highlighted in the literature by Jaiswal et al. (2019), and Shivendra et al.
(2021). This is resulted due to lack of accessibility of market information among farmers,
as reported by Shrivastava and Pal (2019), farmers are not in the position to take decisions
of what to sell, when to sell, where to sell, and at what price, hence for them its difficult to
fetch remunerative prices. Therefore, various models have been suggested in the literature
to monitor crop price, price of selling produce to dealers, price of purchase by dealer or
sub dealer, and purchase by dealer for storing information and transaction for making
entire agriculture marketing system efficient thereby higher remuneration to farmers.
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 28

3.2. Emerging areas of Agribusiness Opportunities in Blockchain in Agriculture

Analysing the content of the qualitative data, three major domains are identified as most
contemporary from the systematic review. Fig 2 shows that Agri Supply Chain, Food
quality, and Farmers‟ distress are major domains constituting business opportunities.
Figure 2: Emerging domains identified in the literature

Agri Supply Chain Food quality Farmers' Distress

3.2.1. Agricultural Supply Chain and Blockchain Technology

Supply chain in agriculture is found as one of the centre themes in literature. Although,
existing agri-supply chain in India is highly fragmented due to large number of small and
marginal farmers, low level of value addition, inadequate market infrastructure, and lack of
warehouses and storage in line with study of Sudha et al.(2021), use of blockchain
technology can have potential to reduce the gap as reported by Alam and Khan (2021)
such as, in case of supply chain of wheat, rice and sugarcane, profits have gone upto 30
percent by the use of blockchain technology. Further, notable contribution in the
development of blockchain models have been found in the literature synthesised by
Shrivastava and Pal, (2019), Yadav and Singh (2019), Borah et al. (2020), Khanna et al.
(2020), Hari et al. (2021), Madhu et al. (2021), Mukherjee (2021), Sathya et al. (2021), and
Shivendra et al. (2021). These models focus on smart contracts that implement various
operations such as procurement, grading, processing, storage and selling as reported in the
study of Shrivastava and Pal (2019), and proposed for monitoring of crop insurance,
sharing of land, selling and buying, and sustainable production practices reported in the
study of Yadav and Singh (2019).

Figure 3: A simplified agriculture supply chain in India

Input supplier Aggregator/

Producer Mandi (Market)/
Seed/Chemicals Warehouses/ Consumer
etc. (Farmer/FPOs) Retailer
Processor

Figure 3 shows a simplified agri supply chain model, works under certain mandatory
government regulations and certification. In each activity, digital flow along with physical
movement can be connected with blockchain network for better coordination among all the
actors of the chain. The technology is very helpful while accessing transparent information
in a shared and transparent system which has much wider benefits in revolutionizing the
supply chain highlighted in the study of Harshavardhan et al. (2019).
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 29

3.2.2. Food quality, and Blockchain Technology

Yadav et al. (2020) highlighted Food quality as a big concern due to growing awareness
among consumers and other stakeholders across the supply chain. In case of identifying
contamination at source, it can be isolated at origin and further losses can be minimized in
the supply chain as suggested in the study of Shivendra et al. (2021).Further Yadav and
Singh (2019) recognized Traceability as one of the mechanisms to monitor the food safety.
Examination of these studies resulted topropose a model to address the issues of food
quality and safety using blockchain technology-based mobile application (fig 4) wherein
the app will monitor all agro-activities, provide information on farm activities, weather
forecast, will provide traceability feature and expert advice. At the same time the app will
be connected through APMC or market. Database thus created will provide information to
government department for strengthening market intelligence and policy advocacy.
Figure 4: Proposed framework for blockchain technology based mobile application

Mobile
Agri-Inputs, Package of APMC Market
Practices, Weather
Application
Traders/Exporters
forecasting, Expert
Processors/Consumers
advice, harvesting,etc.
Government
Control/eNAM

3.2.3. Farmers’ distress and blockchain technology

Farmers distress specially in the market information, market access, and underpaid prices
are identified as factors of farmers‟ distress by Dave et al. (2019), Yadav and Singh
(2019), Hari et al. (2021) and Sharma and Singh (2022). In order to curtail the farmers‟
distress, several blockchain technology-based applications are suggested in the literature.
4. Conclusion
Although, digital technologies are found to be least integrated in agriculture, Sendros et al.
(2022) highlighted that blockchain technology can play a promising role to bring
digitalization in agriculture and address several open issues such as product traceability,
trust among supply chain stakeholders, production sustainability etc. The review papers
were largely dominated by conceptual themes. Transparency in food ecosystem, food
quality and safety, and concern towards farmers‟ remunerative prices are found to be very
serious issues and need to further strengthen with the help of promising blockchain
technology along with artificial intelligence (AI) and data analytics. Role of blockchain
found to be highly significant while addressing the major identified issues suggesting that
public and private players in the field of blockchain, special, agri-startups have to be
Empirical Economics Letters, 22 (Special Issue 1): (January 2023) 30

promoted and incentivised at grass root level for promoting the technology among farmers.
Further, domain of agri-supply chain, food safety, and farmers‟ distress are significantly
found in most of the studies, provides a roadmap to the scholars, researchers, start-ups,
existing food business players and policy makers for further investigation in the identified
domain of the blockchain technology and agriculture, its use and scope. The study has its
limitations too such as the database of Scopus was only considered, although, it is known
to be largest database available for researcher, but other database such as ProQuest, ABI-
inform, WoS, etc. may be explored for further studies and interesting findings may be
drawn.

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