Blockchain Shapes The Supply Chain Industry As India Uses It For Tea Trade
Blockchain for supply chains has been the trend currently as we see Reliance using Blockchain to ensure transparency to goods transport. Next in line is Tea Board India, as they are looking forward to implementing Blockchain to ensure complete traceability of tea produced and supplied in the country.
The tracking by the board will be right from the stage of tea production to the plantation stage and finally to when the buyer buys it.
Blockchain has the potential to identify and help in the elimination of issues that revolve around adulteration of tea, ensuring preservation of Indian tea identity, and also helping tea farmers get a fair price of the products. The board is also of the opinion that the new-age technology could help with increasing consumption of tea in the domestic market.
The Tea Board has put forward an expression of interest (EOI) while releasing the tender. It is inviting companies to bid for designing, developing, and commissioning end-to-end technology to make sure the tea supply chain is traceable.
Reportedly, the company or startup selected through the bidding process will be adopting technologies like Blockchain that shape the future of industries to integrate various online systems to make tea trade traceable.
Vivek Goenka, chairman at the Indian Tea Association, told Business Standard that the implementation of traceability could help the consumers with information on the origin of teas down to the garden and region. He further mentioned how this could even help in blocking adulteration.
Bijoy Gopal Chakraborty, president of the Confederation of Indian Small Tea Growers Association, added that traceability could bring to light the areas where sub-standard teas are being manufactured or procured. The tea price rise can also be halted.
In India, adulteration of tea is done by the mixing of colors. These colors leave a glossy effect on tea. Black teas are mixed with a plant, the use of which is made in the making of lead pencils named Plumbago, whereas the blue ones in few cases are treated with Prussian Blue, a toxic substance.
As per a Blockchain Report 2019 by NASSCOM, India has become more welcoming towards Blockchain as there is a significant growth in the adoption of Blockchain technology in the country. Commitments in blockchain-based projects have reportedly touched over $20 Bn across various industries.
The Indian government in Union Budget 2019 had mentioned its willingness to adopt Blockchain for the secure digital future that the world wants to step into. Back in July, the research wing of Reserve Bank of India in July mentioned how it is working towards developing a blockchain model that focuses on fulfilling the needs of Indian banks.
Earlier, the National Payments Corporation of India (NPCI) has also put forward an EOI to enable bidders to propose their capability for developing distributed ledger technology/ blockchain in the payment domain.