Leveraging blockchain technology to improve smallholder farmers’ access to commercial markets in Bangladesh
The agriculture sector contributes about 11% to Bangladesh’s GDP and employs more than 31 million workers. Women’s labor force participation in agriculture has increased significantly in the past decade, partly due to the expansion of the agricultural subsectors (e.g., poultry, dairy, and commercial vegetables) in rural areas. The 2022 Labour Force Survey of the Bangladesh Bureau of Statistics shows that female labor participation in agriculture has increased significantly, rising from just 8% in 1996 to 58% in 2022.
Despite their contributions, women farmers have less access to markets, credits, and technology and face wage discrimination. Lack of resources and opportunities significantly impacts agricultural productivity, incomes, and the livelihoods of smallholder farmers. They are at a greater risk of falling prey to exploitative informal intermediaries, paying higher prices for agricultural inputs, particularly in remote areas, due to limited purchasing power and market knowledge. Over 76% of Bangladesh’s farmers are estimated to sell their agricultural products to local middlemen at a much lower market price. As a result of these traditional agrarian supply chains, smallholder farmers are losing a fair share of their earnings, and consumers are exposed to higher possibilities of adulterated and unsafe food.
Bangladesh-based startup Krishi Shwapno is helping farmers connect directly to businesses to ensure fair prices and safe food for consumers with food traceability. The startup uses blockchain technology to provide a one-stop solution for farmers to monitor their produce from the field to markets. Through a digital dashboard system, Krishi Shwapno creates a farmers’ network in specific regions and elects micro-entrepreneurs to represent the network and communicate with them. They can then book the marketplaces digitally, and based on real-time notifications, products are collected directly from farmers, allowing them to access markets directly.
Since its establishment in 2019, the startup has supported smallholder farmers across various stages of the harvesting cycle – from providing financial literacy and access to capital to supporting pre-harvest and post-harvest assessment and monitoring. In 2021, Krishi Shwapno had 40 micro-entrepreneurs and more than 6500 affiliated farmers. Currently, their services range from offering on-demand quality checks, and real-time farming advice, alongside ensuring zero wastage policy from farms to markets, reliable delivery, and fair prices. During the COVID-19 pandemic, Krishi Shwapno launched its ‘Digital Feriwala Program,’ which also delivered commodities to individuals and households through GPS-trackable devices.
Krishi Shwapno’s whole-of-community approach to improving market access to smallholder farmers, particularly women, through blockchain technology serves as an example of the expansive potential of solutions in the region. Innovative utilization of technology can play an important role in agricultural supply and value chains and also enhance climate resilience and food security.
