The agricultural supply chain is plagued by significant challenges including a lack of transparency, traceability issues, and inefficiencies. Stakeholders often operate in silos, leading to information asymmetry, trust deficits regarding organic or sustainable claims, and financial inequities where farmers receive low prices while consumers pay a premium. Furthermore, complex, paper-based processes are vulnerable to fraud, increase costs, and hinder the tracking of perishable goods, making it difficult to ensure food safety and authenticity.

Blockchain technology emerges as a transformative solution to these systemic problems. As a decentralized, immutable ledger, blockchain offers unparalleled transparency and security by creating a tamper-proof record of every transaction and movement from farm to consumer. This paper explores the integration of blockchain into the agricultural supply chain, detailing its core components—distributed ledger technology, cryptographic hashing, and smart contracts—that work together to ensure data integrity and automate agreements. Key benefits include enhanced traceability for swift contamination response, reduced fraud, streamlined logistics, and the empowerment of all participants with real-time, accessible information.

The analysis is supported by case studies such as AgriDigital, which enables real-time payments for farmers, and initiatives in Telangana and the dairy sector, which combat counterfeit seeds and ensure product provenance. Despite its potential, adoption faces hurdles like transaction processing speed, scalability, high energy consumption in some consensus mechanisms, and regulatory uncertainty. Nevertheless, the market for blockchain in agriculture is projected to grow significantly. The conclusion affirms that blockchain technology holds the potential to revolutionize the agricultural sector by fostering a more efficient, transparent, and trustworthy supply chain that benefits every stakeholder, from producer to consumer.

Keywords: Blockchain Technology, Agricultural Supply Chain, Traceability, Transparency, Smart Contracts, Food Safety, Sustainability, Supply Chain Efficiency