Eka Software, an Indian digital commodity solutions provider has developed a blockchain based marketplace that will enable Coffee growers in the country to have a say in deciding the price for their beans.
The said blockchain-based marketplace is basically an app for the Coffee Board via which growers can directly transact with the buyers. Launched by Coffee Board on Thursday, the app will connect growers to buyers directly, eliminating middlemen. Commerce Secretary Anup Wadhawan from New Delhi and Executive Director of the International Coffee Organisation Jose Sette from Nairobi activated the app.
Srivatsa Krishna, Coffee Board Chairman stated:
“Growers will get the power to decide the price for their coffees.”
Besides helping fetch a premium, the app will also help address certain issues of the industry such as traceability, transparency in pricing and better price discovery. As of now, the app is being piloted with a limited number of growers, roasters, exporters, and traders.
The pilot will continue to go on for 4-5 months, as per Krishna “If this pilot succeeds, we will cover all the growers.” In India, there are close to 3.5 lakh growers, who produce over 3 lakh tonnes of coffee annually.
A farmer willing to sell his produce will have to register on the app and place his coffees along with the expected price. Buyers listed on the marketplace can make bids. If the farmer is satisfied with the quoted price, the buyer can conclude the deal. Currently, he has not addressed the logistics bit, however, the Coffee Board will be certifying the coffees placed on the marketplace for sale, Krishna added.
Krishna added, that there’s no cost for the grower to sell his coffees through the marketplace. “It depends on the numbers. Our hope is that the transaction cost should come down to below ?200 per transaction.”
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