The commerce ministry launched a blockchain-based coffee e-marketplace on Thursday to help farmers integrate with markets. The platform is aimed to reduce the number of layers between coffee growers and buyers and help farmers double their income, the ministry said in a statement.

"This pilot project will help integrate the farmers with markets in a transparent manner and lead to realization of fair price for the coffee producer," Commerce Secretary Anup Wadhawan said in the statement.

The initiative is in its pilot stage and was activated simultaneously by the executive director of the International Coffee Organisation from Nairobi and Anup Wadhawan in New Delhi.

Indian coffee is highly valued for being the only country in the world where entire coffee is grown under shade, handpicked and sun-dried. However, the returns of the nearly 366,000 across the country (mostly small farmers) are meager.

The blockchain-based marketplace app, that was developed in coordination with Eka Software Solutions is intended to bring in transparency in coffee trade and maintain the traceability of Indian coffee from bean to cup so as the consumer tastes real Indian coffee and the grower is paid fairly for his produce, it added.

The platform allows producers to directly transact with multiple buyers and cut the role of middlemen.

Blockchain technology, that started with powering cryptocurrencies, is now being used to improve supply chains in various sectors like healthcare and banking.