Author: Praneetha Komuravelli
While blockchain technology offers promising solutions for transparency, traceability, and seed quality assurance, its adoption in India’s seed industry is fraught with practical and structural challenges. The seed sector in India is vast and diverse, with a mix of large corporations, regional players, and smallholder farmers, making the implementation of advanced digital systems like blockchain a complex task.
1. High Implementation and Maintenance Costs
Developing and managing blockchain systems requires significant financial investment in infrastructure, technology, and training. For small and medium-sized seed companies, these costs can be prohibitive. Implementing blockchain requires integrating digital tracking tools, which is challenging given the fragmented nature of seed production and distribution in rural India.
👉 Example: Many regional seed producers in states like Andhra Pradesh and Telangana, which form the hub of hybrid seed production, struggle to adopt blockchain due to the high initial cost and ongoing maintenance expenses.
2. Limited Digital Literacy and Technical Expertise
Blockchain is a complex and emerging technology that demands specialized knowledge. Many stakeholders—particularly rural seed producers and smallholder farmers—lack the necessary technical skills to adopt and maintain blockchain-based systems. This digital literacy gap prevents the smooth integration of new-age technologies into the seed supply chain.
👉 Example: In Bihar and Uttar Pradesh states of India, where public-sector seeds play a major role, most seed cooperatives and farmers lack the necessary knowledge to understand and operate blockchain interfaces. This gap slows down the technology’s adoption.
3. Data Privacy and Intellectual Property (IP) Concerns
The Indian seed industry is highly competitive, with companies investing heavily in hybrid varieties and genetic innovations. Sharing sensitive data—such as genetic composition, breeding history, and proprietary formulas—on a decentralized and transparent blockchain raises serious concerns about intellectual property theft and data leaks.
👉 Example: Mahyco and Rasi Seeds, leading biotech and hybrid seed companies in India, are cautious about implementing blockchain because open-source records could potentially expose their breeding techniques to competitors.
4. Fragmented and Unorganized Supply Chains
India’s seed supply chain is highly fragmented, involving breeders, certification agencies, distributors, retailers, and farmers—many of whom operate independently without centralized oversight. Getting all stakeholders to adopt blockchain uniformly and update records at each stage is a logistical challenge.
👉 Example: In Maharashtra, hybrid cotton seeds pass through multiple intermediaries, making it difficult to ensure consistent blockchain record-keeping across the supply chain. This fragmentation increases the risk of data gaps and record inconsistencies.
5. Regulatory Uncertainty and Legal Frameworks
India’s regulatory landscape for digital technologies in agriculture is still evolving. There are no clear policies on how blockchain can be used for seed certification, traceability, and data ownership. This regulatory vacuum creates legal risks for companies trying to implement blockchain-based systems.
👉 Example: The Seed Bill 2019, which aims to regulate seed quality and certification, does not explicitly address the use of blockchain technology, leaving companies uncertain about legal compliance when adopting new digital platforms.
6. Farmer Adoption and the Digital Divide
Many Indian farmers, especially smallholders, lack access to digital infrastructure like smartphones, internet connectivity, and blockchain interfaces. Without reliable digital access, farmers cannot effectively engage with blockchain-based systems, limiting the technology’s reach and impact.
👉 Example: In Jharkhand and Chhattisgarh, where tribal farmers rely on public-sector seeds, there is minimal access to digital tools or stable internet connections, making blockchain-based seed tracking impractical.
7. Resistance to Change and Adoption Barriers
The seed industry in India has relied on traditional paper-based systems for decades. Seed producers, certification agencies, and distributors may resist the shift to blockchain due to concerns about disruption, complexity, and increased operational costs.
👉 Example: Krishi Vigyan Kendras (KVKs) and state seed corporations continue to rely on manual record-keeping, which slows the adoption of automated blockchain solutions.
The Way Forward:
Addressing these challenges requires:
- Government and Industry Collaboration: Policies supporting digital agriculture must evolve to incorporate blockchain frameworks.
- Infrastructure Investment: Increased investment in rural digital infrastructure to improve internet access and digital literacy.
- Pilot Projects: Launching localized blockchain pilots to test real-world feasibility before large-scale adoption.
- Farmer Education Programs: Training farmers and other stakeholders on the benefits and use of blockchain-based systems.
As India’s agriculture shifts toward digitalization, blockchain has the potential to revolutionize the seed industry by ensuring transparency, reducing fraud, and empowering farmers. With continued innovation, policy support, and industry collaboration, blockchain adoption could become a transformative force in strengthening India’s seed supply chain.
Read the other articles in this series:
- BLOCKCHAIN | PART I – Blockchain technology in seed industry
- BLOCKCHAIN | PART II – Real life examples of use of blockchain in seed industry
- BLOCKCHAIN | PART III – Challenges in implementation in Indian seed industry
- BLOCKCHAIN | PART IV – Costs And Limitations Of Blockchain Technology In Seed Industry
