Reducing Intermediaries in Agricultural Supply Chains Using Blockchain: Enhancing Farmer Income, Transparency, and Market Access

Abstract

Purpose: This paper discusses how blockchain-enabled supply chain systems can help mitigate the excessive number of intermediaries in agricultural markets and increase value capture to smallholder farmers in developing economies, specifically India.

Methodology: The study uses an empirical method which is mixed in nature based on the primary data that was gathered on 420 farmers in three agro-climatic regions of Karnataka, and 68 agro-market intermediaries were surveyed. Also, five blockchain pilot projects that were implemented in the period between 2021 and 2025 were comparatively analyzed. The research combines field information with supply chain mapping and conceptual modelling using the suggested Decentralised Agricultural Value Realisation (DAVR) model.

Findings: According to the findings, the use of blockchain correlates with an average growth in farmer income by 38.4 percent and substantial time savings in the transaction time. The system increases transparency in price discovery, quality grading and payment settlement, thus lessening the reliance on intermediaries. Smart contracts are efficient replacements of crucial intermediary roles, which reduces inefficiencies and enhances trust throughout the supply chain.

Originality/Value: The paper introduces a new conceptual model, which is the DAVR, that highlights key intervention points whereby blockchain can replace intermediary functions. It gives empirical data on the pilot applications in the real world, and mentions the major obstacles to adoption, including evidence of digital illiteracy, lacking cold-chain infrastructure, and regulatory challenges. The results provide practical implications to policymakers, agri-fintech innovations, and cooperative institutions seeking to establish transparent and fair agricultural markets.