The government in India’s Karnataka state is developing a new smart card-based system that would enable local silkworm farmers to sell their products directly to customers, potentially eliminating losses from middlemen and other corrupt channels.

The system would deploy smart card-equipped chips and ATM technology from NCR Corp., according to a government official in Karnataka.

Silkworm farmers using the new system would swipe a smart card in order to weigh and display their own produce for auction, later receiving payment via their smart cards, which they could convert to cash through ATMs.

The government developed the system after receiving complaints that certain officials were delaying payments or demanding commissions.

According to department data, Karnataka is the largest silk-producing state in India, accounting for 40% of the country’s 19,000 tons of raw silk produced annually.

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