Food industry officials in the United Arab Emirates may soon have a blockchain-based supply chain to obtain agricultural products directly from India.
According to an Aug. 31 report, officials in the United Arab Emirates (UAE) will be using Agriota E-Marketplace, a new platform that employs blockchain technology to bridge the gap between farmers in India and the nation’s food industry. Agriota reportedly provides transparency by verifying the food supply chain from Indian farms to food processing companies, traders and wholesalers in the UAE.
Essentially, the platform will allow Indian farmers to connect directly with food industry firms in the UAE to offer cereal, seeds, fruits, vegetables, spices and condiments. India exported more than $1 billion of food products to the UAE in 2019, according to data from the country’s Agricultural and Processed Food Products Export Development Authority.
“The UAE has a comprehensive plan in place to ensure food security and champion agribusiness trade facilitation, with the ultimate goal of positioning our nation as a world leading hub in innovation-driven food security,” said Pavan Kapoor, the Indian Ambassador to the UAE.
Backed by the Dubai Multi Commodities Centre (DMCC) and developed with Indian company CropData Technology, Agriota will also reportedly offer secure transactions through a multi-tier escrow structure. The DMCC was formed in 2002 by the government of Dubai to provide financial infrastructure and stimulate interest in the global commodities trade.
A number of blockchain firms are working with the agriculture industry to increase efficiency and help farmers earn better revenue. Cointelegraph reported in July that one of India’s largest farm producer organizations would be integrating blockchain to help rural farmers receive higher pay. In May, another blockchain-based startup signed an agreement with the Indian government to create a peer-to-peer marketplace for farmers and buyers.