India’s Assam region has announced plans to use blockchain and artificial intelligence (AI) in the tea production industry. India is currently the second-largest tea producer after China globally, and the country is set to take this initiative, launching a blockchain-based auction system to increase transparency and streamline operations in its tea industry.

Assam, a state located in the North East of India will be driving this initiative, announcing its plan to collaborate with various stakeholders in the tea industry to establish the first of such platforms in the country. The innovative system is expected to change the outlook of the tea industry by ensuring secure transactions and fair pricing by sellers in the industry.

Assam is the largest tea-producing state in India, contributing more than 50% of the total output across the country. It makes the initiative a key step in establishing its dominance in the global tea trade. In addition, the decision to deploy blockchain and AI is not only going to help the country’s tea industry, it is also going to strengthen Assam’s reputation on the global scale.

India’s Assam wants to use blockchain and AI to push global status

Tea auction in India is a platform where tea growers, buyers, and sellers gather to bid and eventually purchase different types of tea. These auctions are held at specialized centers that are integral in setting the price and determining the supply of tea in the market. Producers present samples and buyers place bids with the winner eventually purchasing the quantity they bid on. The auction process is seen as pivotal because it ensures transparent and fair pricing for both buyers and sellers.

According to the state’s budget for the 2025-2026 fiscal year presented by Finance Minister Ajanta Neog, Assam intends to revolutionize the tea market. “Assam will work with tea industry stakeholders to introduce India’s first AI-driven, blockchain-based tea auction system to enhance transparency and efficiency,” the budget read. “This digital platform will revolutionize the tea trade by ensuring secure transactions and fair pricing. The initiative will strengthen Assam’s position as a global leader in the tea industry.”

Assam, known for its premium tea, has been one of the biggest contributors to India’s tea exports. However, the state has had issues like price manipulation and lack of transparency over the years. This new development will change the tea industry in India and also help the economy of Assam and the country. The digital move is also in line with Assam’s goal of using these technologies to help its development. By adopting these technologies, the state sets the pace for other states to follow.

Assam set to launch other AI-powered projects

According to reports, the new platform is expected to provide equal access to all farmers in the state, putting small-scale farmers in the same category as large-scale farmers. It will also offer data-driven pricing, a secure and decentralized system that will remove fraud and fair pricing. In terms of auctions, the blockchain systems will enhance the transparency of the supply chain, with AI expected to streamline the auction process by analyzing market trends, reducing delays, and improving efficiency.

Assam is also working on the launch of India’s first AI-powered anti-deepfake and cyber surveillance laboratory. “Assam Police will be encouraged to set up India’s first AI-based lab to combat deepfake threats and enhance cyber surveillance. This cutting-edge facility will strengthen cybersecurity, digital forensics, and online threat detection. The initiative will position Assam as a leader in AI-driven law enforcement and cybercrime prevention,” the provincial government said in the Budget document.

The Assam government also plans to modernize its land revenue collection, making it more accessible. According to the budget, the state intends to move to the National Generic Document Registration System (NGDRS) under the “One Nation, One Software” initiative. In addition, the state intends to use geospatial tools for accurate land valuation, implementing blockchain in NGDRS for secure and faster transactions.

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More