Blockchain For Supply Chain Management Explored By Indian State Of Kerala

News | June 20, 2018 By:

The government of the South Indian state of Kerala has undertaken two blockchain initiatives to streamline operation in food distribution and farm insurance.

Kerala, a state on India’s tropical Malabar Coast, has nearly 600km of Arabian Sea shoreline. With 33,387,677 inhabitants as per the 2011 Census, Kerala is the thirteenth-largest Indian state by population. It’s known for its palm-lined beaches and backwaters, a network of canals.

The blockchain projects is headed by Keralan think-tank the Development and Innovation Strategic Council (K-DISC). The food distribution project will reportedly use radio frequency identification (RFID) tags to track circulation of milk, vegetables and fish through the state.

“The project will ensure speedy delivery of high quality milk by continuously monitoring production, procurement and distribution through an electronic ledger,” said K M Abraham, Chairman of K-DISC. “Each component of the supply network will have a separate ID number, using which the source and quality of the product can be checked at every point of the chain.”

Abraham added that the whole system will be coordinated using the tags, the Internet of Things (IoT) and mobile applications designed to monitor such things as the movement of trucks and refrigerated tanks and the assurance of optimal temperatures. The technology will also be introduced in vegetables and fish supply. Farms and fish-landing spots will be linked with packaging centers using geo-coded images, in a system that will allow, “continuous monitoring and verification.”

The state of Kerala will also use blockchain for its crop insurance scheme. Abraham said the technology would help avoid time-lag in the assessment and delivery of compensation to farmers who suffer losses due to natural calamities. The technology can further serve to disintermediate disputes between insurance firms and beneficiaries, eliminating the need for third party representatives.

In addition to Kerala, a number of Indian states has been embracing blockchain technology. In December 2017, the West Bengal government revealed plans to use blockchain technology to protect its documents from cyber attacks. In January of this year, the government of Maharashtra announced that it be implementing the technology for data security in various departments. In March, the government of Andhra Pradesh partnered with blockchain firm ConsenSys to boost the state’s blockchain ecosystem.