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Digitizing Mandi Procurement with QR Code Traceability

In India’s agri-value chain, mandis (agricultural markets) serve as critical nodes for procurement of crops like paddy. However, traditional mandi procurement systems suffer from poor transparency, inefficient recordkeeping, and lack of traceability once the crop moves downstream. To solve this, a digital traceability solution was implemented across the procurement workflow—from farmer purchase to warehouse storage and mill site dispatch—ensuring traceable, efficient, and auditable transactions.

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Digitizing Mandi Procurement, Mandi Procurement with QR Code Traceability, mandi Procurement

About the Company

A major agribusiness exporter spearheaded the digitization of its Sustainable Rice Project, with a focus on Basmati paddy cultivation across regions  in Haryana.  Collaborating with 32 farmer groups, comprising around 200 farmers, the project aimed to track 3000MT of Basmati paddy adhering to the standards laid down by the Sustainable Rice Platform. The primary goal was to streamline the entire supply chain, leveraging the TraceX solutions, by digitizing cultivation practices, implementing sustainable practices, and optimizing resource utilization 

Industry

Agribusiness

Region

Haryana, India 

Use Case

Tracking of Sustainable Rice Cultivation practices 

Features Used

  • Farmer profiling 
  • Farm Mapping 
  • Crop Master 
  • Harvest Procurement 
  • Post Harvest Processing 
  • GRN and Sales 

Challenges

  • Fragmented Paper-Based Records: Procurement details (price, farmer identity, volume) were manually recorded and difficult to validate. 
  • No Batch-Level Traceability: Once grains were bagged, there was no system to track which lot came from which farmer or mandi. 
  • Inventory Management Gaps: Stock inflows and outflows at warehouses lacked real-time visibility. 
  • Sales vs. Procurement Disconnect: Mill sites often had no reliable data trail linking their supplies to source-level procurement.

Solutions

A step-by-step traceability workflow was introduced at the mandi and procurement site using QR-code-based tagging and digital data capture: 

Digitizing Mandi Procurement, Mandi Procurement with QR Code Traceability, mandi Procurement
  1. Procurement List Digitization: 
    Mandi Managers received digital procurement plans, including rates and quality benchmarks (Rate / QL). 
  2. Farmer Purchase Logging: 
    On-ground procurement from farmers was logged digitally at the mandi gate with rate and volume details. 
  3. Grain Bagging and QR Tagging: 
    As grain was filled and packed, unique QR code tags were printed and affixed to each paddy bag, linking it to farmer, mandi, and lot details. 
  4. Warehouse Storage with Traceability: 
    QR-coded bags were scanned into the warehouse inventory system, allowing traceable tracking of each bag. 
  5. Logistics and Dispatch to Mill Site: 
    Trucks were loaded based on tagged inventory. Sales teams had access to digital trail of each shipment—including source, quantity, and timestamp.

The Results

  • 100% Batch-Level Traceability: Each paddy bag now carried verifiable procurement and farmer identity data. 
  • Faster Truck Loading and Dispatch: Real-time inventory visibility enabled faster sales operations and shipment planning. 
  • Streamlined Audit Readiness: All transactions—from mandi to mill—were digitally logged, enabling audit trails for traceability certifications. 
  • Enhanced Procurement Governance: Reduced leakage, price disputes, and duplication in records through digital proof of origin. 

Key Takeaways

  • Digital tagging bridges the trust gap between procurement teams and downstream buyers. 
  • QR codes offer low-cost but high-impact traceability for bulk commodities like paddy. 
  • Real-time inventory updates create better alignment between procurement, storage, and sales functions. 
  • Mandi digitization is a foundational step toward EUDR, organic certification, and sustainability reporting readiness. 

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