Blockchain has emerged as a global supply chain management tool with several benefits including traceability which helps build consumer trust
Supply chains are becoming increasingly global and complex. This often leads to issues related to product safety, quality, sourcing, and movement, hampering India’s competitiveness as an exporter. Blockchain has emerged as a global supply chain management tool and is one component of a broader traceability system. Blockchain-based applications provide proof—or an audit—of a transaction that has happened. They also help to show that data has not been altered.
The role of blockchain is crucial in food and beverage, healthcare and cosmetics, agri-input, and apparel industries, especially when consumers seek high-quality, authentic, and ethically sourced products. Taking a cue from the demand for traceability, India must embrace blockchain-enabled systems to build consumer trust and become an export leader. To understand the urgency, let’s discuss how technology is transforming the supply chains of different industries.
Enhancing Safety in the Food and Beverage Industry
The Indian food and beverage industry is under constant scrutiny as issues related to chemicals and pesticides in food products, counterfeit products, and substandard food items are increasing. A large percentage of pesticide residue in fruits, grains, vegetables, and soft drinks, in particular, has become a challenge, with many products falling short of domestic and global safety standards.
Due to rising awareness about quality, modern consumers demand transparency about food origin, ingredients, and safety before purchasing them. In this regard, traceability systems supported by blockchain help trace product origins by offering a verifiable digital trail of products. This boosts accountability at each stage and enhances food safety. Moreover, the stored records about safe farming and processing practices ensure food products and beverages meet quality standards.
Similarly, blockchain can use standards-based unique identifiers to verify the authenticity and sourcing of food products. This insight will further prove effective in curbing counterfeit products by ensuring compliance with global safety standards and allowing recalls.
Quality Assurance in the Livestock and Dairy Industry
Our country is the highest milk producer in the world, contributing 25% of global milk production. India produced approximately 230.58 million metric tonnes of milk during 2022–23. Despite being an integral part of our diet, quality issues such as pesticide contamination in livestock feed and milk, and adulteration of dairy products like ghee have affected consumer trust.
Integrating blockchain could reduce the impact on livestock and dairy products by enabling real-time tracking across the supply chain. For instance, in the case of livestock, blockchain systems can monitor feed quality and animal health. On the other hand, in the dairy segment, the technology can track products and their handling process, which could prevent adulteration and help identify sources of contamination.
Blockchain technology provides an immutable and transparent ledger of all transactions, which ensures that every step in the dairy supply chain, from farm to consumer, can be recorded and verified. Consumers can trust the information about the origin and quality of dairy products
By enabling real-time tracking of dairy products, blockchain can help quickly identify and isolate sources of contamination. This can significantly reduce the risk of foodborne illnesses and ensure that only safe products reach consumers.
Ensuring Transparency in the Apparel & Cosmetic Industry
India is the second-largest producer of textiles and garments, and the industry contributes approximately 2.3% to our nation’s GDP, 13% to production, and 12% to exports. However, the industry faces increasing scrutiny over sustainability and ethical sourcing. The State of Consumer Spending: Gen Z Shoppers Demand Sustainable Retail report found that 62% of Gen Z consumers prefer sustainable brands, and 73% would pay more for sustainable products. Since the new generation’s purchasing decisions are closely based on personal, social, and environmental values, businesses should adapt to sustainability norms.
Similarly, the $1.35 billion Indian cosmetics products market faces similar concerns about quality, ethical sourcing, and sustainability. By enabling consumers to track the origin of products and ingredients, brands can meet safety standards and attract buyers who seek cruelty-free, eco-friendly, and safe cosmetic products.
Blockchain systems can address these issues by boosting transparency across the supply chain and helping trace the origin of products and raw materials.
Proving Authenticity in the Pharmaceutical Industry
Our country’s pharma sector meets 40% of the US’s generic drug demand and 25% of all medicines in the UK. Being a key exporter, India cannot risk being associated with counterfeits or substandard medicine. This is why the government has introduced the Track and Trace system, which mandates unique identifiers to authenticate product batches. The Unique Device Identification (UDI) system is another initiative that aims to create a unique identity for each product in the medical supply chain for enhanced traceability.
Integrating UDI and blockchain systems can help build a transparent digital record of a medical device’s movement, handling, and use. Furthermore, by storing UDI data, the technology can help ensure compliance with regulatory standards such as the Drugs and Cosmetics Act and Good Manufacturing Practices (cGMP). Similarly, tamper-proof records for clinical trials can improve future outcomes and lower the risk of counterfeit products in transit. This dual approach could position India as a trusted supplier of medicines and medical devices in the global healthcare market.
Through these ways, blockchain could revolutionize Indian supply chains and enhance consumer safety. Blockchain solutions and their implementation on a broad scale can help overcome common supply chain concerns and improve India’s reputation as an exporter and commercial hub. Companies must start exploring the benefits of blockchain-based traceability by conducting pilot projects and based on the same should move towards full-scale deployment. Grassroots-level efforts backed by government support and industry participants to integrate blockchain-backed traceability systems would be crucial in this journey.
