Thailand’s BAAC to launch blockchain-based e-commerce platform for farmers
The Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand announced its plans to establish an e-commerce platform. The platform will be built on the foundation of blockchain technology to ensure transparency and fairness, according to 42 year old Deputy Finance Minister Julapun Amornvivat.
The deputy finance minister highlighted the prevalent issue in the country where the majority of profits from crop exports are pocketed by vendors, leaving farmers incurring losses. The e-commerce initiative is primed to address this imbalance, aiming to create a fair profit-sharing system between farmers and vendors.
Upon the successful implementation of the system, it is expected to mitigate farmers’ losses through better control of production. Initially, the platform will focus on coffee, recognising Thailand’s position as a leading coffee producer, reported Bangkok Post.
BAAC’s vision is to promote high-value agricultural practices, encouraging the use of technology and innovation to enhance productivity and product quality. The goal is to meet global standards and bolster Thai competitiveness in the global market. In addition, the bank lends its support to local agro-tourism initiatives.
In its mission to become a sustainable rural development bank, BAAC supports farmers in all aspects, from production to value addition to products, and marketing support. The bank’s efforts are aimed at raising farming income to match that of urban occupations. Additionally, BAAC strives to enhance farmers’ skills to improve their quality of life.
In a related development, BAAC has set up an Office of Foreign Affairs to elevate Thai farmers’ productivity and connectivity to a global level. This includes the export of products in partnership with the Agricultural Development Bank of China (ADBC) via business-matching activities.
Furthermore, BAAC provides direct access to raw material sources and production at fair prices for ADBC’s customers, directly from upstream producers. This move underscores BAAC’s commitment to fair trade practices and sustainable development in the agriculture sector.
