Author: Praneetha Komuravelli
In addition to the previous discussion , now let’s discuss how block chain technology can help in real life with real life examples-
How Can Blockchain Transform the Seed Industry?
The seed industry is plagued by critical challenges such as counterfeit seeds, supply chain inefficiencies, and a lack of transparency and trust among farmers, suppliers, and seed companies. Counterfeit seeds, which are poor quality seeds that are often sold under false branding, can result in poor yields, financial losses for farmers, and potential agricultural risks. Additionally, the complex seed supply chain—which involves multiple intermediaries, including breeders, distributors, and retailers—makes it difficult to track seed authenticity and quality.
Blockchain technology offers a secure, decentralized, and tamper-proof digital ledger that records and verifies every step of the seed’s journey, from production to final use by farmers.By implementing blockchain, stakeholders can benefit in the following ways
1. Ensuring Seed Traceability, Authenticity, and Quality
A significant challenge in the seed industry is the prevalence of counterfeit or substandard seeds, which leads to poor yields, financial losses, and reduced farmer confidence. Farmers frequently encounter situations where they purchase seeds marketed as high-yielding or disease-resistant, only to receive low-quality or entirely fake substitutes. This lack of transparency affects farm productivity and market trust.
Blockchain technology can resolve this issue by tracking and verifying every step of the seed’s journey—from breeding and testing to certification and distribution. Each seed variety is assigned a unique digital identity (or QR code), which is stored securely on a blockchain ledger. This record is immutable, meaning it cannot be altered or falsified.
At every stage—breeding, testing, certification, packaging, and sale—data is logged in real time. Farmers, suppliers, and regulatory bodies can access these records to ensure the seed’s authenticity and quality standards. By scanning a QR code on the seed packet using a smartphone, farmers can instantly verify crucial information such as:
✅ Seed origin (location and producer)
✅ Genetic purity (variety-specific traits)
✅ Certification details (compliance with regulatory standards)
✅ Date of production and shelf life
👉 Example: A farmer in Europe considering the purchase of high-yield hybrid seeds can simply scan the QR code on the seed packet. In seconds, they receive a complete history of the seed’s journey—ensuring it meets European regulatory standards and reducing the risk of purchasing poor-quality or fake seeds.
This transparency and traceability foster trust between seed producers and farmers, ensuring that genuine seeds reach the market while reducing the prevalence of counterfeiting and fraud.
2. Enhancing Supply Chain Efficiency
The seed industry operates through a multi-layered supply chain that includes breeders, seed producers, distributors, retailers, and ultimately farmers. Any disruption—such as delayed shipments, improper handling, or poor storage conditions—can directly impact seed viability and quality, leading to reduced germination rates and financial losses for both companies and farmers.
Blockchain technology, especially when combined with smart contracts, can significantly improve supply chain efficiency by offering real-time tracking, automated processes, and data transparency across all stakeholders.
How Blockchain Enhances Supply Chain Efficiency:
✅ Real-Time Tracking:
Blockchain enables companies to track the movement of seeds from the moment they are produced to when they reach the farmer. Each stage—processing, packaging, shipping, and delivery—is logged on the blockchain ledger, allowing real-time monitoring of temperature, humidity, and handling conditions. This ensures that seeds remain within optimal storage conditions, preserving their quality.
✅ Automated Payments with Smart Contracts:
Smart contracts can automate payments based on predefined conditions. For instance, if a seed batch meets specific storage criteria or delivery timelines, payments are automatically released to the supplier. This reduces manual errors, enhances payment accuracy, and fosters faster transactions between parties.
✅ Minimizing Losses through Rapid Issue Identification:
Blockchain records allow for immediate detection of inefficiencies or breaks in the supply chain. This helps companies pinpoint issues like delayed shipments or compromised storage conditions and implement corrective measures in real-time to minimize product losses.
👉 Example: If a batch of tomato seeds is exposed to excess heat during transport, blockchain logs will record the temperature spike, allowing the company to identify and isolate the compromised batch. Future shipments can be optimized by adjusting logistics protocols and improving cold-chain storage, reducing the likelihood of seed spoilage.
By improving transparency, automating transactions, and enhancing traceability, blockchain helps the seed industry reduce operational inefficiencies, optimize logistics, and guarantee product quality—ultimately delivering better outcomes for both producers and farmers.
3. Protecting Breeder Rights and Intellectual Property
Seed innovation is a time-consuming and resource-intensive process. Companies invest millions of dollars and years of research to develop hybrid seeds, genetically improved varieties, and biotech innovations. However, the unauthorized reproduction, piracy, and patent infringement of seed varieties pose serious threats to breeders’ intellectual property (IP) rights. Blockchain technology can play a transformative role in protecting these rights by offering a tamper-proof, transparent, and immutable record of every stage of seed development.
How Blockchain Secures Intellectual Property in the Seed Industry:
- Immutable Seed Patents and Traceability:
Blockchain can be used to register new seed varieties with detailed records of their genetic profiles, breeding processes, and testing outcomes. Once recorded, this information cannot be altered or falsified, ensuring that companies and breeders maintain exclusive ownership over their innovations. - Proof of Ownership and Automated Licensing:
By documenting every step of the breeding process on a blockchain ledger, companies can prove original ownership of new seed varieties. This system can also automate licensing agreements using smart contracts, ensuring that third parties cannot sell or reproduce seeds without compensating the rightful owner. - Cross-Border IP Protection:
For multinational seed corporations and research institutions, blockchain ensures that breeder rights are protected across international markets. This is particularly critical in countries where seed piracy is common, allowing legal recourse and data-backed evidence to defend against IP infringement.
Example:
In India, where hybrid seed piracy is a significant issue, companies like Nuziveedu Seeds and Mahyco face challenges with unauthorized replication of their genetically modified (GM) cotton. Implementing a blockchain-based registry would ensure that all seed data, from genetic markers to breeder credentials, is securely recorded. This would allow these companies to enforce IP rights more effectively and prevent unauthorized producers from distributing counterfeit seeds.
In Europe, companies like BASF and Syngenta developing advanced climate-resilient seeds could benefit from blockchain by securing intellectual property and ensuring that every licensed distributor and farmer pays the appropriate royalties through automated smart contracts.
👉 Example: If Syngenta develops a new drought-resistant maize variety, blockchain can document the entire R&D process, including genetic sequencing, field trials, and patent data. If a third party attempts to replicate or sell the same variety without authorization, the blockchain record provides undeniable evidence to protect their ownership and claim legal remedies.
By using blockchain to safeguard breeder rights, seed companies can protect their investments, foster innovation, and ensure fair compensation for their intellectual contributions.
4. Strengthening Seed Certification
Seed certification is a critical process which is done to ensure that seeds meet quality standards, including germination rates, genetic purity, and regulatory compliance. However, traditional certification methods often rely on paper-based documentation, which is time-consuming, prone to errors, and vulnerable to tampering. Blockchain technology can revolutionize seed certification by offering a secure, transparent, and tamper-proof digital system where seed breeders, certification agencies, and regulatory bodies can verify and track seed quality at every stage.
How Blockchain Improves Seed Certification:
- Transparent and Tamper-Proof Certification Records:
Blockchain provides a time-stamped, immutable ledger where seed testing data—such as germination results, disease resistance, and genetic purity—is securely recorded. This prevents data manipulation and ensures authenticity throughout the supply chain. - Faster Verification and Compliance:
With blockchain, certification bodies can digitally record test results and regulatory approvals, allowing farmers and distributors to access verified seed information instantly. This reduces the time lag between testing and market access, improving seed availability during critical planting seasons. - Global Compliance with Regulatory Standards:
Different countries have strict regulations regarding seed certification, especially for hybrid and genetically modified (GM) seeds. Blockchain helps companies meet international standards by providing real-time, traceable data that regulatory authorities can verify without relying on manual documentation.
Example
India’s National Seed Corporation (NSC):
In India, seed certification is mandatory under the Seed Act, 1966, but manual processes often cause delays and errors. Blockchain could allow certification agencies like the NSC to upload germination results directly, enabling farmers to verify the authenticity of seeds through a QR code on the seed packet.
👉 Example: If a farmer in Punjab buys Bt cotton seeds, blockchain records would allow them to verify the seed’s genetic purity, certification number, and testing date instantly, ensuring they receive approved seeds with guaranteed performance.
5. Fairer Access and Improved Farmer Trust
Smallholder farmers, especially in developing countries like India, often face issues such as price manipulation, delayed payments, and limited access to genuine seeds. These problems arise due to the lack of transparency and the presence of multiple intermediaries in the supply chain. Blockchain technology can help by creating transparent, tamper-proof systems where every transaction is recorded, ensuring fair pricing, timely payments, and access to verified seeds.
How Blockchain Enhances Fair Access and Trust:
- Transparent Seed Procurement:
Blockchain creates a direct link between farmers and seed companies, reducing dependence on middlemen who often inflate prices. This peer-to-peer system ensures that farmers receive genuine, high-quality seeds at fair market rates while also giving seed producers a direct channel to reach their customers. - Timely and Automated Payments:
By integrating smart contracts, blockchain can automate payments once agreed conditions are met (e.g., seed delivery confirmation). This ensures immediate compensation for farmers, reducing the risk of delayed payments which is a common issue in traditional systems. - Blockchain-Backed Credit Systems:
Farmers with a verified transaction history on blockchain can access microloans or credit facilities more easily. This is especially beneficial in rural areas where farmers often lack formal credit access. By recording their purchase and repayment history, blockchain enables financial institutions to assess creditworthiness fairly and transparently.
Examples:
- JHARKHAND STATE GOVERNMENT – The Directorate of Agriculture in the state is distributing quality seeds to the farmers through a blockchain based traceability platform, which is ensuring timely availability and quality of seeds to the farmers.
With this, Jharkhand has become the first state in the country to distribute seeds through the blockchain system.
Link- https://atmagumla.org.in/seed.php
- Telangana Seed Traceability Initiative[ Pilot Project ] : The Telangana government, through its IT Department in coordination with the Agriculture Department and Professor Jayashankar Telangana State Agricultural University (PJTSAU), has introduced blockchain technology to monitor the supply and quality of seeds.
This initiative aims to combat the issue of spurious seeds entering the market by ensuring traceability from production to the end farmer. AgHub-incubated startup TraceX developed the solution, enabling farmers to scan QR codes on seed packets to validate their authenticity and source.
Link- https://tracextech.com/seed-traceability-telangana-agriculture-university/
