Blockchain tech promises to streamline agribusiness operationsBreaking

April 29, 2024

The emrgence of blockchain technology promises to revolutionise transparency and traceability in operations of modern agribusiness. “Blockchain technology is the future and in every sector of life, it is becoming increasingly important. As a country that heavily relies on agriculture, it is vital for Pakistan to adopt technological advancements that can revolutionise traditional practices. Among these advancements, blockchain technology emerges as a powerful tool, offering unparalleled transparency and efficiency,” said Khan Muhammad Wazir, a former director to the minister of science and technology In an interview with WealthPK, he said Pakistan’s agricultural sector is facing a significant issue of lack of transparency in the supply chain. “With blockchain technology, every stage of the production process, from farming to distribution, can be recorded in a secure and transparent manner.” Additionally, he said farmers could monitor their produce, consumers could verify its origin, and stakeholders could confirm adherence to quality standards.

“This transparency not only builds trust and protects consumers from substandard products but also promotes fair trade practices, supporting market growth and encouraging a more sustainable future.” Wazir said smallholder farmers often faced challenges in receiving fair compensation for their produce due to intermediaries and opaque pricing mechanisms. “Blockchain-enabled smart contracts can facilitate direct transactions between farmers and buyers, eliminating middlemen and ensuring fairer prices. This direct interaction not only empowers farmers economically but also fosters a more equitable distribution of profits within the supply chain.” Wazir said inefficiencies in logistics and inventory management contributed significantly to food wastage in Pakistan. “By integrating blockchain into supply chain operations, stakeholders can streamline processes, optimise inventory management and reduce wastage. Smart contracts can automate inventory tracking, temperature monitoring and delivery schedules, thereby minimising losses and enhancing overall efficiency.”

However, he pointed out that implementing blockchain technology in Pakistan's agribusiness faces several challenges. “One major hurdle is the limited technological infrastructure in rural areas, where many farms and agricultural operations are located.” “Access to reliable internet connectivity and digital tools is essential for blockchain systems to function effectively, but these resources are often lacking in remote agricultural regions,” he mainained. “Additionally, there is a need for widespread education and training on blockchain technology among farmers, producers, and other stakeholders to ensure smooth adoption and utilisation. Furthermore, regulatory frameworks and standards for blockchain implementation in the agricultural sector must be developed and enforced to address legal and compliance issues,” he added. Wazir said overcoming these challenges woud require collaborative efforts between the government, tech companies, financial institutions and agricultural organisations to create a conducive environment for blockchain innovation in Pakistan's agribusiness sector.

Credit: Independent News Pakistan