A Study

On

Role of block chain in ethically constrained industries: macro level

Of

Leadership, Ethics and Corporate Governance

Under The Supervision

Of

Mr. Gaurav Ashesh

By

Rubal Garg

(MBA-2018-20)
A. Introduction

Gems industry-:

The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 7 per
cent of the country’s GDP and 15 per cent to India’s total merchandise exports. It also employs over 4.64
million workers and is expected to employ 8.23 million by 2022.

Based on its potential for growth and value addition, the Government of India has declared the Gems and
Jewellery sector as a focus area for export promotion. The Government has recently undertaken various
measures to promote investments and to upgrade technology and skills to promote ‘Brand India’ in the
international market. [1]

India is deemed to be the hub of the global jewellery market because of its low costs and availability of
high-skilled labor. India is the world’s largest cutting and polishing centre for gems, with the cutting and
polishing industry being well supported by government policies. India's Gems and Jewellery sector has
been contributing in a big way to the country's foreign exchange earnings (FEEs)[2]. The Indian
government presently allows 100 per cent Foreign Direct Investment (FDI) in the sector through the
automatic route.

Chocolate industry-:

Chocolate is a usually sweet, brown food instruction of roasted and ground cacao seeds that is made in the
form of a liquid, paste, or in a block, or used as a flavoring ingredient in other foods. The earliest proof of
use traces to the Olmecs (modern day Mexico), and proof of chocolate drinks relationship to 1900
BC.The word "chocolate" is derived from the Classical Nahuatl phrase chocolātl.[3]

The seeds of the cacao tree have a severe bitter style and have to be fermented to improve the flavor.
After fermentation, the beans are dried, cleaned, and roasted. The shell is removed to produce cacao nibs,
which are then ground to cocoa mass, unadulterated chocolate in tough form. Once the cocoa mass is
liquefied through heating, it is known as chocolate liquor. The liquor also may also be cooled and
processed into its two components: cocoa solids and cocoa butter. Baking chocolate, also called bitter
chocolate, consists of cocoa solids and cocoa butter in various proportions, without any delivered sugar.
Powdered baking cocoa, which contains greater fiber than it incorporates cocoa butter, can be processed
with alkali to produce Dutch cocoa. Much of the chocolate bump off today is in the structure of sweet
chocolate, an aggregate of cocoa solids, cocoa butter or added vegetable oils, and sugar. Milk chocolate is
sweet chocolate that moreover consists of milk powder or condensed milk. White chocolate contains
cocoa butter, sugar, and milk, however no cocoa solids [4].

Coffee industry-:

The coffee enterprise has lengthy records that can be traced as some distance as the fifteenth century,
when Ethiopia, the beginning of coffee exported coffee to Yemen. The coffee alternate soon accelerated
to Egypt and the Ottoman Empire. With the developing of change between the Republic of Venice and
the Ottoman Empire, coffee was once delivered to Europe, spreading to England, France, Germany,
Austria and the Netherlands [5]. With European colonial expansion, coffee used to be brought to the
Americas and Asia, and quickly grew to be a vital industry in a number of colonies, especially in South
America and India. The coffee industry additionally spurred slavery in South America. Today the leading
espresso producing countries are nevertheless on the South American continent. Coffee exports is a $20
billion dollar enterprise making it the second-most-traded commodity, by and large ate up through
industrialized countries whilst being produced by way of less developed nations. Arabia and Asia [6]

B. Literature Review

Gems and jewellery sector is an integral part of the nation’s economy with its huge potential. A report
released by the Gem & Jewellery Export Promotion Council and KPMG states that the global Jewellery
industry has the potential to grow to USD 280 billion by 2015. In India, the gems and jewellery industry
has been growing at a good pace and it accounted for 14% of India’s total merchandise exports in 2011-
2012. is also the world's largest diamond processing (cutting and polishing) country with an 80 per cent
share in world market. The most significant aspect contributing towards the growth of this sector is
India’s favorable trade policies. (Ficci Ladies Organization Survey 2012).[7]

FDI may lead to export diversification in the host country if it positively affects the export intensity of
industries that have a low share in world exports. Indirectly, FDI may encourage export diversification
through spillover effects: that is, the presence of FDI in an industry may increase the export intensity of
domestic firms. The empirical results for the Indian economy in the post-liberalization period show that
FDI from the US has led to diversification of India's exports, both directly and indirectly. However,
Japanese FDI has had no significant impact on India's exports. (Rashmi Bang (1997). [8]

The export of gem and jewellery has shown steady growth in the month of June 2012 which registered a
growth of 7.5% which amounts to $4.2 billion on a yearly basis which is comparatively than the previous
year which was $3.9 billion. There is no doubt that India’s export in terms of gems and jewellery is rising
but demand is still sluggish in European market. As India’s major export is to Europe. US, UAE and
Hongkong. So it is an area of great concern for India’s export prospects. (Press Trust of India, New Delhi,
July 26th, 2012).[8]

Suresh D. Wells (1998)28 inferred that, Stones have been around longer than civilization has been.
Primitive men have been interested in colorful rocks that they thought held powers. Gold, silver and
copper were the preferred materials in making jewelry and statuettes representing Gods because they were
easy to melt and cast. Ancient seals were decorated with these colorful stones with unusual shapes to
mark ownership of certain objects. Diamonds and gemstones have become symbols of mysticism and
power [9].

Mike Rockwell (2002)29 summarized that, Crystals and gems have held a special place in our lives since
ancient times. Their majesty and mystery have inspired artists, kings, and commoners alike. Part of their
allure is their ability to heal the heart and soul. Citrine gemstones are no exception, and offer a great deal
to those who possess them. Their name comes from the old French word citrine, meaning lemon, because
of their yellow color. Crystals and gems have held a special place in our lives since ancient times. They
have inspired artists, kings, and commoners alike with their majesty and mystery. Their ability to heal the
heart and mind is part of their allure. Garnet gemstones are no exception, and offer a great deal to those
who possess them. This name for these attractive gems is derived from the Latin word for pomegranate,
granatum. [10]

VK Singh (2002)30 stated that, gemstone is also known as a semi precious or precious piece of stone that
is cut and then polished to make them into jewelry or other ornaments. Gemstones are generally hard, and
are used as decorative pieces on jewelry because of its luster and visual value. Another characteristic of
gemstones is that they are rare. Because of all the reasons they are available at high costs and used by a
few people [11].
A study on consumer’s preference and perception towards Patanjali product by S. ANUPRIYA Conclude
that Consumer satisfaction is derived when he compares the actual performance of the product with the
performance he expected out of the usage. If the perceived benefits turned out to be almost the same as
expected, customer is highly satisfied and that is how the company achieves loyalty of the customer
towards the product [12]

Syeda Quratulain Kazmi (P.A.F Karachi Institute of Economics and Technology, Karachi, Sindh,
Pakistan) Customer perception is basically an organism which describes an individual’s perceived image
which he expects from any product or service. Observation can be changed or influenced by numerous
factors behavior, children who are in their teenage prefer food with respect to food nutritious as well as
three factors plays a very important role, home environment, school and social gatherings.[13]

Lipp (1998) in his view states that his work reviews the literature on the compositional data of vegetable
fats used or proposed as alternatives to cocoa butter in chocolate and confectionery products. Cocoa butter
is the only continuous phase in chocolate, thus responsible for the dispersion of all other constituents and
for the physical behavior of chocolate. Unique to cocoa butter is its brittleness at room temperature and its
quick and complete melting at body temperature. There were, and are, strong efforts to replace cocoa
butter in part for chocolate production for technological and economic reasons [14]

In order to understand the current state of research into sustainable coffee logistics, I conducted a
literature review of both theoretical and practical articles on sustainable logistics and sustainability in the
coffee industry. Using the keywords “sustainable logistics”, “coffee logistics”, “sustainable coffee”, “fair
trade coffee”, and “coffee life cycle assessment”, I reviewed forty-seven articles from nine accredited
logistics and development journals. First, I wanted to understand the theoretical underpinnings of
sustainable logistics practices and their origins. Then, I began to focus specifically on the coffee industry
and the current research into sustainable logistics and practices within the industry. I searched for life
cycle assessment in the coffee industry to understand measures used to calculate resource use and
environmental impacts of the entire coffee industry, from bean to cup.[15]

Based on a study by Sathish and Venkatesakumar (2011), the coffee industry comprises of a combination
of individual cafes, hotel cafes and retail cafe chains. These three types of coffee shops contribute to the
entire coffee industry in a balanced manner. For example, kopitiam or known as the local coffee shop was
once popular in Malaysia ages ago. However, since the evolution of the individual coffee shops and the
International Coffee Chains, the local coffee shop is now on the falling state.[16]
(CBK,1994) noted that the coffee industry in Kenya is highly considered for its cooperative system of
milling, marketing, and auctioning, as well as its high percentage of production from small farms. Kenya
is one of the best coffee producing countries in the world. It is estimated that six-million Kenyans are
employed directly or indirectly in the coffee industry. The major coffee growing regions in Kenya are the
High Plateaus around Mt. Kenya, the Aberdare Range, Kisii, Nyanza, Bungoma, Nakuru and Kericho. He
argued that the high plateaus of Mount Kenya and the acidic soil provide excellent conditions for growing
coffee plants. Coffee from Kenya is well known for its intense flavor, full body, and pleasant aroma [17].

Monika Daniel Penkar (2006) stated that the recovery of the world economy from the financial crisis has
been slow and fragile. Chances of robust economic recovery in the immediate future seem remote. The
developed countries may aim at realizing recovery through fiscal consolidation and export led growth.
This will pose a challenge to Indian exports in assessing overseas market. The paper attempts to throw up
some major stumbling blocks and establishes the need for fast growing export trade and highlights two
core products namely Agriculture and Leather. The relevant keywords are: Import, Export, Core products
and Strategy. [18]

In the 19th century, coffee cultivation spread from the West Indies to Latin America. Brazil quickly
emerged as one of the main producers providing for 75% of the global harvest at the turn of the century.
Colombia started to harvest coffee in the 1920s. Around the same time, African countries entered the
global coffee trade with the British colonies Uganda and Kenya being forerunners on the continent.
Eventually, Asia became a player in the global coffee market with Vietnam experiencing a production
boom in the beginning of the 21st century (Daviron and Ponte 2005).[19]

Coffee is made from beans that are found in the cherries of the coffea plant. There are many different
coffea species, but today only two of them are traded: Coffea Arabica (Arabica) and Coffea canephora
(Robusta). While Arabica grows best in the highlands of tropical zones, Robusta can be grown at lower
altitudes. Robusta tolerates hotter and drier climates and is more resistant to pests and diseases than
Arabica. The share of Robusta beans in global coffee trade has been growing steadily with Indonesia,
India and later Brazil and Vietnam focusing on the cultivation of this species. Today, Robusta makes up
around 45% of the world coffee production (United States Department of Agriculture (USDA) 2014). The
share of Robusta coffees of global coffee trade is likely to increase further, curtsey of climate change.
With global warming the number of droughts and unusual weather conditions that favor coffee plagues
like the fungus coffee rust is expected to increase (International Coffee Organization 2014; Leber 2014).
[20]

In general, Robusta is bitterer, less refined in taste and has more caffeine than Arabica. Some of the
harshness of Robusta varieties can be weakened through processing, i.e. steam cleaning. However, few
roasted coffees are made up of pure Robusta. Traditionally, roasters blend beans of diverse characteristics
and quality to reduce the dependency on a specific region or supplier. By adjusting the composition of
different coffees, skilled roasters can create the signature aroma of a specific coffee brand even when
inputs change (Daviron and Ponte 2005). [21]

C. Research Objectives-:

1. Primary objectives-:
A) To study the sourcing of the raw materials and / or human resources as an ethically questionable
phenomenon in certain industries-:

Gems industry-:
a) Imports in the gems industries-:
The import of raw substances for gems and jewellery has distinct place in this industry. In India two 90
per cent of raw material is imported. The uncooked material is processed and manufactured into saleable
gadgets for world market. In 12 months 2012-13 total import was once US$ 37551 million showed a limit
of 12.1 p.c as compared to 2011-12. India was key importer of cut and polished diamond in 2011-12. In
case of tough colored gemstone, import accelerated to Rs.1740 crore in 2014-2015 from Rs.1445 crore in
2013-14. The government has hiked import duty on gems thrice to 10 percent, banned inward shipments
of gems and medallions and made it mandatory for importers to export 20 percent of their shipments
before buying more of gems from overseas two [22]. However, after two the imposition two of two the
duty, two imports two of two reduce and polished gems dipped 80% from Rs.14, 472 crore to Rs.2771
crore in ultimate five years. Total import additionally lowered through 22% in 2015-16 as compared to
remaining 12 months [23].
2. Exports in gems industries-:
Global two gemstones two and two jewelry industry two is two on two the way two to two big
transformation. Two India has too many two herbal benefits to two emerge as two Gems two & two
Jewellery hub two of the world. A two prime element of two rough, uncut two diamonds two is processed
in India two in two the form of two either polished two diamonds or finished diamond jewelry and then
two exported [24]. The report two of two exports of gemstones two and two jewellery from India two
during the yr two 2008-09 two was 24894 million, in year 2009-2010 was US$ 29442 million, for the
duration of 12 months 2010-2011 used to be US$ 43048 million, so in year 2012- 2013 amounted two to
two US$ 39137 two million as two compared to US$ two 43211.19 two million carried out two in 2011-
2012; two indicating a limit of 9.43%. [25]. Economic uncertainty, government regulations and
fluctuation in the exchange charge and imposition of 2% import obligation on reduce and polished
diamond resulted in the decline of country’s gems and jewelry exports. Gross Exports of Cut and Polished
gems throughout 2014-2015 at US$ 23160.18 million indicates a decline of 5.46% in contrast to US$
24498.48 million during 2013-14. Colored two gems two exports two at US$ two 453.25 two million two
in the course of 2014- 15 suggests a two decline two of 29.89% in contrast two to US$ 646.52 million
two at some stage in 2013-2014. From India, gemstones and jewellery are typically exported to UAE,
Hong Kong, USA, Thailand, UK, Africa, Israel, Belgium and Switzerland etc. U.A.E remained two the
single two biggest two importer in the course of two 2015-2016 accounting for around 32% of the total
gems two and jewelry followed by using Hong Kong, USA, Belgium and Israel etc.[26]

b) Human resources as an ethically questionable phenomenon in gems industries-:

The gems corporation faces a number of challenges in relation to safety, trust and transparency.
Traditionally, the gems enterprise has struggled to preserve real right statistics about the supply and
provenance of diamonds, as properly as classifying lab grown diamonds fraudulently provided as natural
mined gems, and transactions between traders and buyers. In these varieties of regions, the gems
corporation can deeply acquire from block chain technology. [27]

Block chain is a digitally two disbursed ledger two technological know-how that can assist chain of
custody through a machine that makes documentation tamper-proof two and, potentially, presents new
possibilities for traceability in the rather complex and fragmented sectors of diamonds, colored stones two
and pearls two. Data introduced to the block chain (e.g. by means of cellular phone, pill or computer) at
every recorded transaction step are verified, ownership is attributed, two and two the two records two is
time stamped, encrypted, and saved permanently in an allotted and decentralized two manner, imparting
two an immutable two report two that is shaped like a single, but shared, source of information about a
gem’s trip from supply to quit consumer[28] As such, block chain can be used to report the starting place
and direction of a gem from mine to market, as nicely as confirm possession (and probably possession,
e.g. when a gem is out on memo). Block chain technological know-how has especially grabbed the
attention of the artwork world as a way to authenticate artwork lower back to its artist, and to record
ownership and two authenticity two of two artwork along a two permanent two and doubtlessly
anonymised chain of custody (O’Neill, 2018).

Role of block chain in gems industries-:

If the gem’s total history is saved at the block chain, it can't be interfered with, nor can the diamond be
sold with a pretend or extra ideal record. The diamonds provide from a selected mine is secured, which
ought to aid inside the strategies used to combat the hassle of ‘blood diamonds’. Resolving these
problems requires integration of revolutionary options into the exchange consisting of Block chain in
jewelry industry. The transparency and the verification structures furnished via way of this technology,
corroborate agree with and fairly reduce frauds whether or not or no longer in insurance realm or
counterfeits. Via developing immutable tune data and guard the treasured objects through Block chain
technology, producers and kinds set the seal on the authenticity & moral change. Ultimately developing a
contemporary world in which all of us is a winner. Tokyo Techie presents you the Block chain offerings
in Diamond Industry with support and platforms guide the disruptive technology promotes socially
sincere transactions, prevents compromising popularity, and establishes private connections amongst the
company and customer [29]. The company is warming up, leveraging Block chain technological know-
how to generate cost for its clients and limit expenses. One of the generation groups, offering solutions
underpinned with Block chain science for earrings enterprise is TokyoTechie. An international start-up
developing thumbprints all through the supply chain pipeline to shield the possession, authenticity,
reputations and the challenges that undergo a heavy price no longer easiest for the proprietors, insurers,
however to all events concerned[30].
Chocolate Industry-:

a) Exports in the chocolate industries-:

Andhra is the top cocoa-producing state in India. It adds the cocoa farmers are being provided a subsidy
of Rs 20,000 per hectare for the first three years since 2005, under the National Horticulture Mission of
the central government.

Venkatesh Hubballi, director, DCCD, says while the objective under the mission is to add around 20,000
hectares in cocoa cultivation every year, only a fourth of that is realized [31]. "The horticulture
department has many crops to focus on and their staff. Cocoa is an export oriented commodity. In India,
at present there are 10 multinational agencies engaged in the subject of cocoa industry and exports
products like Beans, chocolates, cocoa butter, cocoa powder and cocoa based products to other countries.
India earns foreign change well worth Rs. 849 cores through exports of cocoa bean and its merchandise
[32].

b) Imports in the chocolate industry-:

Cocoa, a tropical crop native to components of South and Central America, is now also grown in West
Africa, where Ghana is second to the Ivory Coast in production, and Southeast Asia, where Indonesia is
the biggest producer. The tree starts off evolved yielding pods from its fifth 12 months and is productive
for 25-30 years. KP Magudapathy, senior manager, cocoa operations, Mondelez India, says south India's
geographical proximity to the Equator potential it has best climatic prerequisites suitable for cocoa
cultivation. The top exporters of Chocolate are Germany ($4.51B), Belgium ($3.06B), Italy ($1.96B), the
Netherlands ($1.66B) and the United States ($1.57B). The top importers are the United States
($2.78B),Germany ($2.3B), France ($2.17B), the United Kingdom ($2.02B) and the Netherlands
($1.29B)[33].

b) Role of block chain in the chocolate industry -:

It seems logical (and fairer) that block chain technology could resolve this tricky grant chain issue and
make the journey from Bean to Bar more transparent. What would want to be tracked would be all the
farmers and what they’re providing into the chain. This data should be entered through a rural farmer’s
mobile phone and/ or an RFID or QR code added to the order [34]. We’d additionally be in a position to
derive how those farmers sourced those beans and an experience of their reputation (i.e., do they use child
labor?). The location of the plot of land would be registered too. This batch of cocoa would then be
tracked through middlemen at the co-op and once more entered into the chain and tracked in addition as
the full shipment worked its way up via West Africa to Europe. A full history of the experience of this bar
could be built up and reachable by the impenetrable block chain [35]. All information of payments can be
tracked too, and it would be clear whether or not the bad farmer acquired honest compensation for his
beans. The economic document should be observed proper through to the merchant who buys to promote
to give up consumer. All relevant records would be seen throughout.

Coffee industry-:

a) Imports in the coffee industries-:

About seventy five per cent of the total espresso produced in the United States is exported to over 88
nations of the world. As such, the import of espresso has been insignificant. In order to discourage import
of coffee of other origin, the import duty @100 per cent is payable [36]. The top five export markets for
Indian Coffee are the Russian Federation, Italy, Germany, Belgium, and Spain. The Coffee Board has
stepped up its efforts to keep the Indian brand a float via keeping “Fine Cup Awards Flavor of India” in
one-of-a-kind world espresso markets commencing 2003 as an annual event [37]. Two during 2007‐08, a
total extent of 2, 49,030 tones of espresso (including re‐exports) was exported from India valued at
Rs.2007.90 crore. During the 12 months 2008‐09, a total quantity of 1, 24,534 tones (including
re‐exports) has been exported as on 30.11.2007 earning an overseas change of Rs. 1097.47 crore[38].

Exports in the chocolate industry-:

Coffee shipments from India, Asia's third-largest producer and exporter, rose 13.26 per cent to 48,330
tones throughout the first two months of this calendar year, in accordance to the Coffee Board [39].The
United States of America had exported 42,670 tons in the year-ago period. India ships each Robusta and
Arabica varieties, without on the spot coffee. As per the Board's ultra-modern data, the shipment of
Robusta coffee jumped 28.42 per cent to 34,090 tones all through January-February 2019, from 26,545
tons in the equal period last year[40].Similarly, the export of Arabica coffee multiplied with the aid of
14.39 per cent to 11,156 tones, from 9,752 tons in the said period. The quantity of espresso re-exported
also remained higher at 13,392 tones, as towards 11,516 tones in the said period. However, the export of
Instant coffee confirmed a decline as volumes remained at 3,047 tones for the duration of January-
February of 2019, when in contrast with 5,704 tons in the year-ago period[41].Italy, Germany and Russia
were the principal export destinations for Indian coffee at some point of the period[42].

Coffee production in India is dominated in the hill tracts of South Indian states, with Karnataka
accounting for 71%, followed by means of Kerala with 21% and Tamil Nadu (5% of overall production
with 8,200 tones). There are about 250,000 coffee growers in the country; 98% of them are small
growers. As of 2009, Indian espresso made up simply 4.5% of the world production. Almost 80% of
Indian coffee is exported 70% is certain for Germany, Russia, Spain, Belgium, Slovenia, United States,
Japan, Greece, the Netherlands and France. Italy money owed for 29% of the exports. Most of the export
is shipped through the Suez Canal. Andhra Pradesh and Orissa in the eastern coast of the country and with
a third region comprising the states of Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland and
Arunachal Pradesh of Northeastern India, popularly recognized as “Seven Sister States of India [43].

b) Role of block chain in the coffee industry-:

Fascinatingly enough, block chain’s chances in the espresso price chain transcend the traditional trope of
visibility and trust ability. Coffee cultivation is still caught up in the clutches of compelled and baby labor
throughout giant swathes of Africa and South America, the likes of which should be brought to light with
the aid of adopting block chain. It additionally can help to limit the lopsided financial equation of the
coffee fee chain, as research shows coffee farmers earn as little as 7 percent of the retail price of
coffee[44].

Across the world, quite a few block chain pilots exist within espresso provide chains, normally to
recognize its provenance and thereby assure high-quality to consumers. This March, the Indian authorities
approved the ‘Coffee Block chain Initiative’ that is predicted to help combine espresso farmers with the
markets in a greater transparent manner. The authorities expects block chain to delete quite a few layers
of redundant middlemen and helps bridge the gap between buyers and producers.

“This initiative will assist in growing a brand photograph for Indian Coffee through traceability, via
decreasing growers dependency on intermediaries and having direct get admission to buyers for a fair
price for their produce,” stated the Indian Ministry of Commerce & Industry in its statement[45].

“Block chain helps in discovering the proper espresso suppliers for exporters and inside the stipulated
time to meet developing demands and in constructing better have faith and long-term relationships.”
“The best 360 platform offers all its stakeholders – farmers, roasters and buyers – get admission to
records throughout the entirety of the supply chain. This facts allows whole evaluation of the furnish
chain to become aware of grant chain efficiencies,” stated the startup in a write-ups [46]. “For consumers,
bext360 presents unprecedented levels of transparency round beginning and quality; and allowing, for the
first time, an espresso drinker in Europe to pull up these facts and verify precisely where their coffee was
sourced.”

For example-:Starbucks had been one of the earliest adopters of block chain within the espresso
ecosystem, launching its two-year pilot challenge across its sourcing farms in Costa Rica, Colombia and
Rwanda. Starbucks’ involvement in block chain is heartening due to the fact the company, the world’s
biggest coffeehouse chain through far, can create a seismic fear-of-missing-out (FOMO) strain for
organizations inside the ecosystem to attempt block chain out. This May, Starbucks announced that it is
partnering with Microsoft’s Azure Block chain Service to tune its espresso shipments and deliver real-
time traceability to its grant chains [47].

C. Secondary objectives

1. Study of the SCM of these industries, especially the RM and WIP

Gem industry-:
Transparent Supply Chain, RM and WIP of gems industries-:
 Making the Supply Chain Transparent
 To make sure that all the gems we promote have been dealt with in accordance with Fair Trade
Gems protocols, Columbia Gem House maintains entire chain of custody documentation on each
and every gemstone.
 This capability that:
 All global transactions and the switch of all goods and monies are treated in a legal and
transparent manner.
 All import and export is carried out in accordance with all local laws.
 We request that all shipments into the United States encompass an official consignment that
shows actual and accurate values.
  The respectable invoice is used to remit charge by using wire or financial institution test to a
legitimate financial institution account furnished by using the supplier.
 Transparency of the furnish chain and all transactions is necessary to forestall any opportunity of
money laundering or funds being transferred out of the producing country. The U.S. Patriot Act
now additionally requires tremendous additional documentation of import and export transactions
involving treasured items like gemstones.[48]

2. Raw materials-:

With negligible domestic production of gold, diamonds, and other gemstones, India has to import almost
all its entire requirements. The Indian GJ relies upon totally on imported raw materials. Over the
remaining a number of years, imports of pearls, precious & semi-precious stones have accounted for 8-
10% of India's complete imports. An estimated 67% of India's GJ imports throughout FY2006 had been
of rough diamonds (which are then reduce & polished for re-export), observed by way of CPDs (23%)
[49].

3. Work in progress
1. Elective 1 - Supervisor - Rough Cutting: The Rough-cutting Supervisor is in-charge of
supervising the day-to-day workflow and processes of the rough cutting department.
2. Elective 2 - Supervisor - Shaping: The Shaping Supervisor is in-charge of supervising the day-to-
day workflow and processes of the pre-forming or pre-shaping and final shaping departments.
3. Elective 3 - Supervisor – Faceting & Polishing: The Faceting and Polishing Supervisor is in-
charge of supervising the day-to-day workflow and processes of faceting and polishing
department.[50]

Chocolate industry-:

1) The supply chain for cocoa beans is a series of activities that are imperative to convert raw
materials into the closing product (chocolate) that is supposed to be for consumers. Just like many
other manufacturing industries, growing chocolate merchandise entails a chain of manufacturing
that has many links. The grant chain is broken up into two fundamental parts: the producing
nations and the eating countries.[51]
 2) The beans start in producing nations where there are the small farmers; who develop the cocoa
beans. The local traders then alternate cocoa beans amongst other nearby merchants and finally
the exporters distribute the cocoa beans.
3) The cocoa beans then enter the worldwide market where there are global merchants who
exchange the cocoa beans amongst different worldwide traders. This is called integration
trading/processing.
4) Cocoa beans finally make their way to ingesting nations the place there are cocoa processors and
covertures manufacturers. Chocolate producers such as Cadbury and Nestle then manufacture the
cocoa beans into chocolate. Retailers such as supermarkets then promote the many one of kind
types of chocolate to us, the consumers, who buy and eat the chocolate.
5) These furnish chains are very complicated and there would be additional services that assist
producers inclusive of banking and insurance plan services, packaging firms and transport
specialists produce the chocolate.[52]

Raw materials and work in progress -:

Essentially the solely uncooked fabric you need for making chocolate is cocoa beans, which are the beans
of the cocoa fruit. To make acceptable chocolate these beans must be fermented, dried, roasted, shelled
and floor up, leaving you with a liquid cocoa mass to be quenched and tempered earlier than being poured
into moulds to turn out to be chocolate bars. This is what can be known as a bean-to-bar one hundred
percent chocolate.

Usually a one hundred percent chocolate is a bit too bitter and strong tasting for most people, so it is
anticipated to add 20%–60% of sugar in the grinding process to make the chocolate style milder and
sweeter. If you solely do these two steps you get what is known as no-additive or two-ingredient
chocolate. [53]

It is then again also frequent to add some vanilla for some flavor balancing, as well as up to 10% more
cocoa butter to make the liquid chocolate easier to work with. For industrial production one also
frequently adds soy or sunflower lecithin to manage viscosity. None of these are strictly necessary
however. To make milk chocolate you observe the specific same procedures as above, solely adding 5%-
10% dried milk powder as well at some stage in the grinding process[54].
Coffee industry-:

Supply chain of the coffee industry-:

1. The furnish chain system of espresso beans usually includes seven levels: growing, harvesting,
hulling, drying and packing, bulking, mixing and roasting. The complete supply chain is further
prolonged by way of quite a few intermediaries, which include world transporters as properly as
exporters and retailers.[55]
2. But let's start with the origin: the coffee seed grows best in a humid climate, with a secure
temperature of approximately 25 ranges Celsius (approximately 77 tiers Fahrenheit), making
Brazil, Vietnam, Colombia, Peru and other comparable areas foremost developing locations.
After roughly ten weeks, the seed sprouts, however it takes around four to seven years for the tree
to mature and produce its first crop.

3. The purple cherries are ordinarily picked with the aid of hand, and for the reason that no longer
all cherries are ripe at the equal time, one tree need to be inspected countless times. This manner
requires a full-size quantity of human resources, and is not the only guide work that goes into
harvesting coffee. Apart from disposing of the hull and dust from the cherry, as nicely as isolating
the two beans embedded in the fruit, the employees have to lay out all the beans in the solar to
absolutely dry them.

4. After the coffee beans are dried out, sacks containing about 60kg (130 pounds) of beans are
exceeded on to exporters. These intermediaries gather together large amounts of beans from
exclusive farmers to cowl the requirements of the global gamers in the coffee sector, who have
their roasting houses and distribution centers worldwide.

5. The complete provide chain is linked by several intermediaries. Transportation is a necessary

thing in the espresso grant chain, representing a sizable world network, which ends with various
shops ranging from small and relaxed cafés to massive field shops all over the world. But the
espresso beans make a number of stops earlier than arriving at their ultimate destination, be it
from crop to drying station, or from character farmers to processors and roasters. The increased
the wide variety of intermediaries, the greater tricky and steady the furnish chain desires to be.
Raw material and work in progress-:

Coffee comes from the seed, or bean, of the espresso tree. Coffee beans incorporate more than one
hundred chemical substances consisting of fragrant molecules, proteins, starches, oils, and bitter phenols
(acidic compounds), every contributing a one-of-a-kind characteristic to the unique flavor of coffee[56].
The coffee tree, a member of the evergreen family, has waxy, pointed leaves and jasmine-like flowers.
Actually greater like a shrub, the coffee tree can grow to extra than 30 toes (9.14 meters) in its wild state,
however in cultivation it is generally trimmed to between 5 and 12 feet (1.5 and 3.65 meters). After
planting, the typical tree will not produce espresso beans till it blooms, generally about 5 years. After the
white petals drop off, crimson cherries form, each with two green espresso beans inside. (Producing mass
quantities of beans requires a giant range of trees: in one year, a small bush will yield solely adequate
beans for a pound of coffee.) Because espresso berries do not ripen uniformly, careful harvesting requires
picking only the crimson ripe berries: such as unripened green ones and overly ripened black ones will
affect the espresso taste.[57]

Coffee timber grows fine in a temperate climate barring frost or high temperatures. They also seem to
thrive in fertile, well-drained soil; volcanic soil in particular looks conducive to flavorful beans. High
altitude plantations placed between 3,000 and 6,000 feet (914.4 and 1,828.8 meters) above sea degree
produce low-moisture beans with greater flavor. Due to the nice influences of volcanic soil and altitude,
the best beans are often cultivated in mountainous regions. Today, Brazil produces about half of the
world's coffee. One quarter is produced somewhere else in Latin America, and Africa contributes about
one sixth of the global supply.

Currently, about 25 types of coffee trees exist, the variant stemming from environmental factors such as
soil, weather, and altitude.[58] The two foremost species are coffea Robusta and coffea Arabica. The
Robusta pressure produces much less costly beans, mostly due to the fact it can be grown under much less
perfect prerequisites than the Arabica strain. When served, coffee made from Arabica beans has a deep
reddish cast, whereas Robusta brews tend to be darkish brown or black in appearance. The coffees made
from the two normally used beans fluctuate significantly. Robusta beans are commonly grown on large
plantations the place the berries ripen and are harvested at one time, thereby increasing the proportion of
under- and over-ripe beans. Arabica beans, on the different hand, contain the bulk of the top rate coffees
that are typically offered in complete bean shape so consumers can grind their personal coffee. Whether
served in a coffee residence or prepared at home, coffee made from beans provides a greater delicate and
less acidic flavor.[59]
2. Roles and responsibilities of the stakeholders in coffee, chocolate and gems industries-:

Stakeholders Roles & Responsibilities

1. End Consumers The Responsibility to be aware of the quality and safety of goods
and services before purchasing.[60]

2. Wholesalers a wholesaler sources and stocks bulk goods and sells them to
retailers at a low price[61]

3. Retailers The retailers provide important services and solve the problems
of the manufacturers and wholesalers on one hand and the
consumers on the other hand.

4. Suppliers The role of a supplier in a business is to provide high-quality

products from a manufacturer at a good price to a distributor or
retailer for resale.

5. Manufacturers & Manufacturer assembles, pack, process or label ready-made

Roasters products and place them on the market under your own name or
trademark, then you’re the manufacturer.
Roast and blend coffees following strict protocols for correct
operation of roasting equipment.[62]

6. Importers It is important for the importer to check the valuable CE marking

stamp and printing of the safety information in a language where
the product is being put into use including the point of
contact.[63]

7. Distributors Distributors are the wholesalers, retailers and other merchants

that make the products available in the market. A distributor
acquires products for further distribution either from a
manufacturer, from an importer, or from another distributor.[64]

8. Non-Government NGO activities include, but are not limited to, environmental,
Organizations social, advocacy and human rights work .Helping citizens to
voice their aspirations, concerns and alternatives for
consideration by policy makers

9. Certifications It’s highly impossible for the manufacturers, producers,

Organizations importers and designers to carefully and adequately accomplish
all the necessities for CE marking.
 10. Labors They may split, saw, cut, shape, polish, or drill gems, coffee and
chocolates to prepare them for use for the further processes.

3. Ethical dilemma-:

1) Excessive Energy consumption is increasing and labor is getting unemployed.

2)The signature verification is the challenge of the Block chain, because each transaction
must be signed with cryptographic scheme, the big computing power is necessary for the
calculation process to the sign. It is one of the reasons to the high energy consumption which led data
privacy issues.
3)The problem of the Block chain is the opportunity to split the chain. The nodes, which are
operating to the old software, won’t accept the transactions in the new chain. This
chain is creating with the same history as the chain, which is based on the old software. Block-
chain requires re-organizing of tasks but in the old software there will be less-organization.
4) The high costs are big disadvantage of the Block chain. The average cost of the transaction is
between 75 and 160 dollars and most of it is covered by the energy consumption. Whereas labor‘s
employment will be cheaper on those days.
5) Without block chain break even could be achieved early since block chain is very expensive because of
competitive organizations needs to adopt it.
6) The investment in technology or investment in people is a big ethical dilemma.
7) The technology made the system and processes transparent so it eliminates the middle -men
arrangements.
8) Block chain technology involves an entirely new vocabulary which involves specialist in the beginning
that involves costs.
9) If a block chain is used as a database, the information going into the database needs to be of high
quality. The data stored on a block chain is not inherently trustworthy, so events need to be recorded
accurately in the first place [65]
10) Block chain protocols offer an opportunity to digitize governance models, and because miners are
essentially forming another type of incentivized governance model, there have been ample opportunities
for public disagreements between different community sectors [66].
4. Ethical Alternatives Generated by Block chain industry-:

1) Beyond sectoral specific applications, Block chain opens multifaceted cross-cutting opportunities.
Block chain could help build trust and enhance the transparency of supply chains.
2) Block chain holds interesting promises to enhance government procurement processes, manage public
contracts more efficiently, and fight fraud, but it remains to be seen whether current proofs of concept are
conclusive and whether the use of Block chain can bring e-government procurement systems to a more
secure and automated level at a cost that justifies the transition to a block chain-based scheme.
3)By increasing transparency and making it possible to automate processes and payments, Block chain
has the potential to reduce trade costs significantly, including verification, networking, processing,
coordination, transportation and logistics, as well as financial intermediation and exchange rate costs[67]
4) Block chain opens up new opportunities for micro, small and medium sized enterprises (MSMEs) and
small producers from developing countries
5) Block chain could help administer intellectual property (IP) rights in a more efficient and transparent
way, and help fight counterfeits.
6) Beyond Block chain’s pilot projects related to trade finance, an increasing number of startups are
developing products and block chain applications to provide for quicker, easier and cheaper cross-border
payments, putting pressure on well-established financial institutions to rethink the way they have been
doing business.
7) Block chain is seen by many as an interesting tool to improve the efficiency of trade processes and help
move towards paperless trade. However, the challenges to overcome are equivalent to the opportunities
offered by the technology.
8) The technology opens interesting opportunities to enhance the efficiency of a number of processes and
cut costs in these areas, it is not a panacea. Carefully weighing the costs and benefits is essential.
9) Block chain: a tamper-proof, decentralized and distributed digital record of transactions that creates
trust and is said to be highly resilient.[68]
10) Block chain’s first implementation as the technology underpinning Bit coin has led many to associate
Block chain with Bit coin. However, the potential use of Block chain goes well beyond the world of
crypto currencies. [69]
Data Analysis-:
1) Primary Analysis-:

 The top exporters of Chocolate are Germany ($4.51B), Belgium ($3.06B), Italy ($1.96B), the
Netherlands ($1.66B) and the United States ($1.57B). The top importers are the United States
($2.78B),Germany ($2.3B), France ($2.17B), the United Kingdom ($2.02B) and the Netherlands
($1.29B)[33]. b) Role of block chain in the chocolate industry -: It seems logical (and fairer) that
block chain technology could resolve this tricky grant chain issue and make the journey from
Bean to Bar more transparent.
 “For consumers, bext360 presents unprecedented levels of transparency round beginning and
quality; and allowing, for the first time, an espresso drinker in Europe to pull up these facts and
verify precisely where their coffee was sourced.” For example-:Starbucks had been one of the
earliest adopters of block chain within the espresso ecosystem, launching its two-year pilot
challenge across its sourcing farms in Costa Rica, Colombia and Rwanda.
 Exports in the chocolate industry-: Coffee shipments from India, Asia's third-largest producer and
exporter, rose 13.26 per cent to 48,330 tones throughout the first two months of this calendar
year, in accordance to the Coffee Board [39].The United States of America had exported 42,670
tons in the year-ago period.
 Data introduced to the block chain (e.g. by means of cellular phone, pill or computer) at every
recorded transaction step are verified, ownership is attributed, two and two the two records two is
time stamped, encrypted, and saved permanently in an allotted and decentralized two manner,
imparting two an immutable two report two that is shaped like a single, but shared, source of
information about a gem’s trip from supply to quit consumer[28] As such, block chain can be
used to report the starting place and direction of a gem from mine to market, as nicely as confirm
possession (and probably possession, e.g. when a gem is out on memo).
 Role of block chain in the coffee industry-: Fascinatingly enough, block chain’s chances in the
espresso price chain transcend the traditional trope of visibility and trust ability.
 Role of block chain in gems industries-: If the gem’s total history is saved at the block chain, it
can't be interfered with, nor can the diamond be sold with a pretend or extra ideal record.
 Coffee cultivation is still caught up in the clutches of compelled and baby labor throughout giant
swathes of Africa and South America, the likes of which should be brought to light with the aid
of adopting block chain.
 This March, the Indian authorities approved the ‘Coffee Block chain Initiative’ that is predicted
to help combine espresso farmers with the markets in a greater transparent manner.
 Tokyo Techie presents you the Block chain offerings in Diamond Industry with support and
platforms guide the disruptive technology promotes socially sincere transactions, prevents
compromising popularity, and establishes private connections amongst the company and
customer [29].
 [27] Block chain is a digitally two disbursed ledger two technological know-how that can assist
chain of custody through a machine that makes documentation tamper-proof two and, potentially,
presents new possibilities for traceability in the rather complex and fragmented sectors of
diamonds, colored stones two and pearls two.
 Block chain technological know-how has especially grabbed the attention of the artwork world as
a way to authenticate artwork lower back to its artist, and to record ownership and two
authenticity two of two artwork along a two permanent two and doubtlessly anonymised chain of
custody (O’Neill, 2018).
 “Block chain helps in discovering the proper espresso suppliers for exporters and inside the
stipulated time to meet developing demands and in constructing better have faith and long-term
relationships.” “The best 360 platform offers all its stakeholders – farmers, roasters and buyers –
get admission to records throughout the entirety of the supply chain.
 Imports in the coffee industries-: About seventy five per cent of the total espresso produced in the
United States is exported to over 88 nations of the world.
 Across the world, quite a few block chain pilots exist within espresso provide chains, normally to
recognize its provenance and thereby assure high-quality to consumers.
 Developing immutable tune data and guard the treasured objects through Block chain technology,
producers and kinds set the seal on the authenticity & moral change.
 In these varieties of regions, the gems corporation can deeply acquire from block chain
technology.
 It additionally can help to limit the lopsided financial equation of the coffee fee chain, as research
shows coffee farmers earn as little as 7 percent of the retail price of coffee[44].
 However, the export of Instant coffee confirmed a decline as volumes remained at 3,047 tones for
the duration of January-February of 2019, when in contrast with 5,704 tons in the year-ago
period[41].Italy, Germany and Russia were the principal export destinations for Indian coffee at
some point of the period[42].
 U.A.E remained two the single two biggest two importer in the course of two 2015-2016
accounting for around 32% of the total gems two and jewelry followed by using Hong Kong,
USA, Belgium and Israel etc. [26]. Human resources as an ethically questionable phenomenon in
 gems industries-: The gems corporation faces a number of challenges in relation to safety, trust
and transparency.
 Starbucks’ involvement in block chain is heartening due to the fact the company, the world’s
biggest coffeehouse chain through far, can create a seismic fear-of-missing-out (FOMO) strain
for organizations inside the ecosystem to attempt block chain out. (83)
 Resolving these problems requires integration of revolutionary options into the exchange
consisting of Block chain in jewelry industry. (83)
 The report two of two exports of gemstones two and two jewellery from India two during the yr
two 2008-09 two was 24894 million, in year 2009-2010 was US$ 29442 million, for the duration
of 12 months 2010-2011 used to be US$ 43048 million, so in year 2012- 2013 amounted two to
two US$ 39137 two million as two compared to US$ two 43211.19 two million carried out two in
2011-2012; two indicating a limit of 9.43%. [25].
 The company is warming up, leveraging Block chain technological know-how to generate cost
for its clients and limit expenses.
 The authorities expects block chain to delete quite a few layers of redundant middlemen and
helps bridge the gap between buyers and producers.
 Coffee production in India is dominated in the hill tracts of South Indian states, with Karnataka
accounting for 71%, followed by means of Kerala with 21% and Tamil Nadu (5% of overall
production with 8,200 tones).
 Economic uncertainty, government regulations and fluctuation in the exchange charge and
imposition of 2% import obligation on reduce and polished diamond resulted in the decline of
country’s gems and jewelry exports.
 Almost 80% of Indian coffee is exported 70% is certain for Germany, Russia, Spain, Belgium,
Slovenia, United States, Japan, Greece, the Netherlands and France.
 The Coffee Board has stepped up its efforts to keep the Indian brand a float via keeping “Fine
Cup Awards Flavor of India” in one-of-a-kind world espresso markets commencing 2003 as an
annual event [37].
 “This initiative will assist in growing a brand photograph for Indian Coffee through traceability,
via decreasing growers dependency on intermediaries and having direct get admission to buyers
for a fair price for their produce,” stated the Indian Ministry of Commerce & Industry in its
statement[45].
 As per the Board's ultra-modern data, the shipment of Robusta coffee jumped 28.42 per cent to
34,090 tones all through January-February 2019, from 26,545 tons in the equal period last
 year[40].Similarly, the export of Arabica coffee multiplied with the aid of 14.39 per cent to
11,156 tones, from 9,752 tons in the said period.
 This batch of cocoa would then be tracked through middlemen at the co-op and once more
entered into the chain and tracked in addition as the full shipment worked its way up via West
Africa to Europe.
 A full history of the experience of this bar could be built up and reachable by the impenetrable
block chain [35].
 One of the generation groups, offering solutions underpinned with Block chain science for
earrings enterprise is TokyoTechie.
 An international start-up developing thumbprints all through the supply chain pipeline to shield
the possession, authenticity, reputations and the challenges that undergo a heavy price no longer
easiest for the proprietors, insurers, however to all events concerned[30].

2. Secondary Analysis-:
 The Faceting and Polishing Supervisor is in-charge of supervising the day-to-day workflow and
processes of faceting and polishing department.[50]
 Chocolate industry-: The supply chain for cocoa beans is a series of activities that are imperative
to convert raw materials into the closing product (chocolate) that is supposed to be for consumers.
 Producing mass quantities of beans requires a giant range of trees: in one year, a small bush will
yield solely adequate beans for a pound of coffee. Because espresso berries do not ripen
uniformly, careful harvesting requires picking only the crimson ripe berries: such as unripened
green ones and overly ripened black ones will affect the espresso taste.[57] Coffee timber grows
fine in a temperate climate barring frost or high temperatures.
 These furnish chains are very complicated and there would be additional services that assist
producers inclusive of banking and insurance plan services, packaging firms and transport
specialists produce the chocolate.[52] Raw materials and work in progress -: Essentially the
solely uncooked fabric you need for making chocolate is cocoa beans, which are the beans of the
cocoa fruit.
 To make acceptable chocolate these beans must be fermented, dried, roasted, shelled and floor up,
leaving you with a liquid cocoa mass to be quenched and tempered earlier than being poured into
moulds to turn out to be chocolate bars.
 The grant chain is broken up into two fundamental parts: the producing nations and the eating
countries. [51] .The beans start in producing nations where there are the small farmers; who
develop the cocoa beans.
 The furnish chain system of espresso beans usually includes seven levels: growing, harvesting,
hulling, drying and packing, bulking, mixing and roasting.
 These intermediaries gather together large amounts of beans from exclusive farmers to cowl the
requirements of the global gamers in the coffee sector, who have their roasting houses and
distribution centers worldwide.
 Coffee beans incorporate more than one hundred chemical substances consisting of fragrant
molecules, proteins, starches, oils, and bitter phenols (acidic compounds), every contributing a
one-of-a-kind characteristic to the unique flavor of coffee[56].
 Chocolate producers such as Cadbury and Nestle then manufacture the cocoa beans into
chocolate.
 The local traders then alternate cocoa beans amongst other nearby merchants and finally the
exporters distribute the cocoa beans.
 After the coffee beans are dried out, sacks containing about 60kg (130 pounds) of beans are
exceeded on to exporters.
Findings-:

The aim of the study was to identify if the sourcing of the raw materials and / or human resources
as an ethically questionable phenomenon in gems.
1) Gross Exports of Cut and Polished gems throughout 2014-2015 at US$ 23160.18 million
indicates a decline of 5.46% in contrast to US$ 24498.48 million during 2013-14.
2) The U.S. Patriot Act now additionally requires tremendous additional documentation of import
and export transactions involving treasured items like gemstones.
3) Tokyo Techie presents you the Block chain offerings in Diamond Industry with support and
platforms guide the disruptive technology promotes socially sincere transactions, prevents
compromising popularity, and establishes private connections amongst the company and
customer.
4) Block chain technological know-how has especially grabbed the attention of the artwork world
as a way to authenticate artwork lower back to its artist, and to record ownership and two
authenticity two of two artwork along a two permanent two and doubtlessly anonymised chain of
custody.
5) All information of payments can be tracked too, and it would be clear whether or not the bad
farmer acquired honest compensation for his coffee beans.
6)Starbucks had been one of the earliest adopters of block chain within the espresso ecosystem,
launching its two-year pilot challenge across its sourcing farms in Costa Rica, Colombia and
Rwanda.
7) Coffee timber grows fine in a temperate climate barring frost or high temperatures. They also
seem to thrive in fertile, well-drained soil; volcanic soil in particular looks conducive to flavorful
beans
8) Excessive Energy consumption is increasing and labor is getting unemployed.
9)The signature verification is the challenge of the Block chain, because each
transaction must be signed with cryptographic scheme, the big computing power is
necessary for the calculation process to the sign. It is one of the reasons to the high energy
consumption which led data privacy issues.
10)The problem of the Block chain is the opportunity to split the chain. The nodes,
which are operating to the old software, won’t accept the transactions in the new chain. This
chain is creating with the same history as the chain, which is based on the old software.
Block-chain requires re-organizing of tasks but in the old software there will be less-organization.
11) The high costs are big disadvantage of the Block chain. The average cost of the transaction
is between 75 and 160 dollars and most of it is covered by the energy consumption.
Whereas labor employment will be cheaper on those days for industries.
12) Without block chain break even could be achieved early since block chain is very expensive
because of competitive organizations need to adopt it.
13) The investment in technology or investment in people is a big ethical dilemma.
14) The technology made the system and processes transparent so it eliminates the middle -men
arrangements.
15) Block chain technology involves an entirely new vocabulary which involves specialist in the
beginning that involves costs in industries.
Conclusion-:

Based on the findings we can conclude the dilemmas and problems being faced and to provide an
alternative to the same we give the following alternative suggestions:

Beyond sectoral specific applications, Block chain opens multifaceted cross-cutting opportunities. Block
chain could help build trust and enhance the transparency of supply chains. Also, Block chain holds
interesting promises to enhance government procurement processes, manage public contracts more
efficiently, and fight fraud, but it remains to be seen whether current proofs of concept are conclusive and
whether the use of Block chain can bring e-government procurement systems to a more secure and
automated level at a cost that justifies the transition to a block chain-based scheme. By increasing
transparency and making it possible to automate processes and payments, Block chain has the potential to
reduce trade costs significantly, including verification, networking, processing, coordination,
transportation and logistics, as well as financial intermediation and exchange rate costs. It has been
observed that Block chain opens up new opportunities for micro, small and medium sized enterprises
(MSMEs) and small producers from developing countries. Block chain could help administer intellectual
property (IP) rights in a more efficient and transparent way, and help fight counterfeits. Further, it has
been observed and found that Beyond Block chain’s pilot projects related to trade finance, an increasing
number of startups are developing products and block chain applications to provide for quicker, easier and
cheaper cross-border payments, putting pressure on well-established financial institutions to rethink the
way they have been doing business. Block chain is seen by many as an interesting tool to improve the
efficiency of trade processes and help move towards paperless trade. However, the challenges to
overcome are equivalent to the opportunities offered by the technology.
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56)http://www.madehow.com/Volume-3/Flavored-Coffee-Bean.html
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58)http://www.ncausa.org/about-coffee/coffee-around-the-world
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67)https://www.ibm.com/downloads/cas/KJDPQKBE
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