Can Blockchain Technology Help Address Bangladesh’s Food-Supply Crisis?

Bangladesh is an agricultural country and the economy is largely dependent on agriculture. But the existing supply chain process in agriculture is not efficient and updated enough to bring out enough profitability for the farmers or end users.

It is causing the prices of the products going up to a great extent and creating severe food crisis in the country. Blockchain technology could serve as a modern supporting tool by improving price transparency, traceability and accountability throughout the supply chain It will ensure price transparency in the market and will also make the entire process more traceable and accessible. There will be more accountability within the stakeholders through an established Blockchain technology.

Before discussing its necessity in Bangladesh, it is important to understand what blockchain technology actually refers to. Blockchain is a shared digital ledger in which verified transactions are recorded in interconnected blocks and distributed among participants in a network. Once information is added, it becomes extremely difficult to alter without detection, making the system comparatively transparent and tamper-resistant (Yaga et al., 2018). In an agricultural supply chain, blockchain could record a product’s origin, quantity, price, ownership and movement at different stages—from the farmer and local collector to the wholesaler, retailer and final consumer. The United Nations Development Programme notes that blockchain’s decentralized structure, data immutability and smart-contract capabilities can support end-to-end traceability in complex agri-food supply chains (UNDP, 2021). Therefore, when reliable information is entered and made accessible to relevant stakeholders, blockchain can help reduce information gaps, identify irregularities and establish a more accountable relationship among farmers, traders, regulators and consumers.

Baralla et al. propose a blockchain-based traceability system built on Hyperledger Sawtooth, with an emphasis on the “farm-to-fork” (F2F) concept already in use in the European Union. The solution enables consumers to trace product origins and verify quality via QR codes, while limiting access to legitimate participants via permissioned blockchain membership. Cocco et al. investigated the decentralized management of food certifications using Self-Sovereign Identity (SSI) in conjunction with blockchain and the Interplanetary File System (IPFS). Another case study by Cocco et al. focuses on the integration of blockchain and IoT to provide traceability in Italy’s Carasau bread supply chain. The system uses RFID tags and sensors to automate data collecting, maintaining product quality and reducing data tampering threats.

The current state of Bangladesh’s agricultural supply chain highlights the need for such a system. Food insecurity in the country is caused by more than just insufficient production; significant amounts of food are lost between harvesting and ultimate consumption due to poor storage, transit, handling, and market coordination. A recent policy brief by the General Economics Division of the Bangladesh Planning Commission estimates yearly post-harvest losses at over US$2.4 billion, involving approximately 16 million tons of food.

The reported loss rates are 12 percent for rice, 20 percent for potatoes, 25 percent for vegetables and onions, and 35 percent for mangoes (GED, 2026). The Food and Agriculture Organization has also recognized insufficient transportation and storage facilities, poor post-harvest management, and low value-chain efficiency as important sources of food loss in Bangladesh (FAO, 2023). These issues lower farmers’ revenues while reducing the amount of food that reaches consumers, adding to increased retail costs. A blockchain-based record could assist regulators and market participants in determining where products are being lost, delayed, withheld, or subjected to anomalous price spikes across the supply chain.

Bangladesh, on the other hand, should gradually deploy blockchain rather than attempting to digitalize the whole agriculture industry all at once. A permissioned blockchain pilot program may start with extremely perishable or price-sensitive items like onions, potatoes, tomatoes, and other vegetables. Farmers’ cooperatives, wholesalers, transporters, cold-storage operators, retailers, and appropriate government organizations would be eligible to participate in this system. Each batch of produce might be allocated a QR code or RFID tag that captured information about its origin, quantity, farm-gate pricing, quality, storage conditions, and movement between stakeholders.

The method could be used by regulators to monitor price changes and spot irregularities, while customers might scan a QR code to access selected information about a product’s origin and journey. Smart contracts might also be used to distribute payments automatically upon delivery and quality verification, decreasing payment delays for farmers. A permissioned network would be ideal since it limits participation to approved institutions and provides greater control over commercially sensitive data (Yaga et al., 2018).

Nonetheless, blockchain should not be promoted as a comprehensive or standalone solution to Bangladesh’s food-supply challenges. It cannot replace cold-storage facilities, improved roads, refrigerated vehicles, effective market regulation or accurate and accountable data collection. NIST cautions that blockchain is not a “silver bullet,” as technological, operational and governance limitations must still be addressed (Yaga et al., 2018). Moreover, the UNDP notes that blockchain does not have an independent mechanism for determining whether raw data entered into the system are correct (UNDP, 2021). Incorrect or manipulated information recorded at the beginning of the process may therefore remain within the system and require additional effort to correct.

Furthermore, blockchain implementation would require substantial investment in digital infrastructure, technical expertise, cybersecurity and training. Many small-scale farmers may lack smartphones, reliable internet connections or sufficient digital literacy to participate independently. Issues concerning data protection, system maintenance, institutional coordination and the cost of QR codes, sensors and other technologies must also be addressed. Blockchain should therefore be introduced through carefully supervised pilot projects alongside investments in physical infrastructure, farmer education and stronger regulatory oversight.

Finally, Bangladesh’s food crisis is caused not only by insufficient agricultural production but also by post-harvest losses, inefficient distribution, information gaps, price manipulation, and a lack of accountability across the supply chain. Blockchain technology has the potential to make agricultural transactions more transparent, traceable, and dependable by tracking the movement, ownership, quality, and price of food goods from farm to market. It has the potential to help farmers earn fair pricing, regulators identify inconsistencies, and consumers make more informed purchase decisions.

However, its success will depend on the veracity of the data entered, the cooperation of essential parties, and the availability of suitable digital and physical infrastructure. Bangladesh should therefore adopt blockchain not as a replacement for existing agricultural reforms, but as a supporting tool within a broader strategy involving improved storage, transportation, market supervision and farmer empowerment. If implemented gradually and inclusively, blockchain could contribute significantly to building a more efficient, accountable and resilient food-supply system in Bangladesh.

References
Baralla, G., Pinna, A., & Corrias, G. (2019). Ensure traceability in European food supply chain by using a blockchain system. In 2019 IEEE/ACM 2nd International Workshop on Emerging Trends in Software Engineering for Blockchain (WETSEB) (pp. 40–47). IEEE. https://doi.org/10.1109/WETSEB.2019.00012

Cocco, L., Mannaro, K., Tonelli, R., Mariani, L., Lodi, M. B., Melis, A., Simone, M., & Fanti, A. (2021). A blockchain-based traceability system in agri-food SME: Case study of a traditional bakery. IEEE Access, 9, 62899–62915. https://doi.org/10.1109/ACCESS.2021.3074874

Cocco, L., Tonelli, R., & Marchesi, M. (2021). Blockchain and self-sovereign identity to support quality in the food supply chain. Future Internet, 13(12), Article 301. https://doi.org/10.3390/fi13120301

Food and Agriculture Organization of the United Nations. (2023, May 8). Food loss reduction resources. https://www.fao.org/platform-food-loss-waste/food-loss/food-loss-reduction/food-loss-reduction-resources/en
General Economics Division. (2026). Agricultural transformation in Bangladesh: A strategic framework for sustainable development (GED Policy Brief No. 01-2026). Bangladesh Planning Commission. https://gedkp.gov.bd/wp-content/uploads/2026/03/Policy-Brief_Agricultural-Transformation_Final.pdf

United Nations Development Programme. (2021). Blockchain for agri-food traceability. https://www.undp.org/publications/blockchain-agri-food-traceability

Yaga, D., Mell, P., Roby, N., & Scarfone, K. (2018). Blockchain technology overview (NIST Interagency or Internal Report 8202). National Institute of Standards and Technology. https://doi.org/10.6028/NIST.IR.8202

Ahamad Ar Rafi Thakur: MPSM (Brac University). Post Graduate Student (Applied Economics) at University of Vienna.