On the 75th Indian Independence Day, Samunnati stepped into a new world powered by Blockchain technology. On this special day, Samunnati was privileged to be part of the launch of an integrated Blockchain, AI, and ML platform centered around the FPOs and Farmer members. The platform would enable the redistribution of value chain gains to farmers. The blockchain is co-powered by the University of Hyderabad, Samunnati, Synchrony, and Social Education Economical Development Society.
Mr. Anil Kumar SG, founder and CEO Samunnati, opened the virtual event with the welcome speech. He explained how the information asymmetry in the value chain is not on account of lack of data but rather from the end of the institutions not having the capability to understand the information that is already available.
The event was graced by the presence of eminent personalities from the Agri ecosystem. The keynote address was provided by Dr. G.R. Chintala, Chairman of the National Bank for Agriculture and Rural Development (NABARD). Dr. Chintala expressed how the launch also brought up a new spirit of collectivization in making farmers realize that every investment in their farms does not need to be made at a very high cost. Dr. Chintala in his keynote speech said “The BlockChain technology is going to be a game-changer and it integrates the input suppliers, the farmers, pesticide and fertilizer suppliers, the credit suppliers, insurance and logistics, equipment hirers, the processors, warehouse managers and so many more. Everybody in the supply chain can log into the platform and gain benefits from the initiative. The FPO need not to go anywhere, the data is available on the platform, which makes it very easy for them to submit all the returns. Also, the people who want to know who is producing/supplying what and the quality controls can also happen the moment everybody is logged into the platform.”
Professor Vijay Marisetty from the University of Hyderabad and the co-founder of Inclusive Growth Chain launched the blockchain at the event. Blockchain platform would bring transparency, reliability by reducing the risk of bias and corruption between Agricultural intermediaries. It is a one-stop solution for a farmer looking for easy and faster financial support with minimal/no paperwork, from the comfort of one’s own home (Farmer Financial Inclusion).
Through blockchain technology, the transparency for all involved stakeholders improves, and it also facilitates the collection of reliable data. From the beginning till the end of the product’s life, blockchain can record every step in a product’s value chain. The reliable data of the farming process is essential for developing data-driven facilities for making farming more efficient and less vulnerable. From the beginning till the end of the product’s life, blockchain can record every step in a product’s value chain.
Blockchain would connect farmers with vendors, food processors, and packaging firms, allowing buyers and sellers to interact without an intermediary in a secure and trusted environment. It also eliminates the requirement for intermediaries to be paid out of farmers’ margins, thereby increasing their profit portion. It will improve asset traceability, accurate data on farmers’ input requirements to input suppliers, and inventory data to output providers. This will help in increasing the future cash flow predictions, enabling lenders to purchase inputs on behalf of the farmers and provide trade finance to farmers. During the launch prof also demonstrated the simple steps to application and sanction of loan via the platform.
The event was graced by the presence of Mr. Meghanath Reddy, IAS, District Collector, Virudhunagar District, TN.
Mr. Pravesh Sharma, Director of Samunnati Agro, closed the event with the message that the technologies like blockchain will help structure various financial services products which can bring a lot of comprehensiveness to engage with the FPOs. The role of tools like blockchain would be to beef in to reduce the information asymmetry by the markets and then, eventually make the markets work for smallholder farmers.
Watch the video of the entire event of the Launch of Agri Blockchain here:
Watch the address speech of Dr. Chintala, the Chairman of National Bank for Agriculture and Rural Development (NABARD) at the launch event here:
Access the session by Prof. Vijaya Marisetty, professor of Finance/Fintech and Analytics, about how the integrated blockchain can help in redistribution of value chain gains to farmers here:
Leave A Comment