India-based Sahyadri Farmers Producer Co is adopting blockchain for food traceability from farm to fork, The Hindu Business Line reported. Sahyadri Farms aims to increase the payout to farmers by improving efficiency and transparency in supply chains.
A farmer producer company (FPO) is a hybrid between cooperative societies and private limited companies. The idea is to organize farmers to improve their bargaining power while ensuring efficient business practices are implemented. Over half of India’s population depends on agriculture for their livelihood.
Sahyadri Farms is one of the largest FPO’s in the country, with FY2019-20 revenue of Rs. 4.6 billion ($61.8 million). Currently, the FPO promises farmers a 25% share of the final price of goods sold by the firm. Using blockchain to save friction costs, the company aims to increase the farmer’s share to 50%, Sahyadri Farms’ Chairman Vilas Shinde told BusinessLine.
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