Bengaluru, August 18, 2025: TraceX Technologies, an AgriFood and ClimateTech startup, has introduced an Agentic AI Tool designed to automate and simplify compliance with the European Union’s Deforestation Regulation (EUDR), which will take effect in December 2025.
The EUDR requires that products exported to the EU be legally sourced and deforestation-free. Exporters and importers of commodities such as coffee, cocoa, palm oil, soy, rubber, cattle products, and wood-based products must submit traceability proofs, verified geolocation data, a Due Diligence Statement (DDS), and digital records for audits. Non-compliance may result in shipment rejections, financial penalties of up to 4% of annual turnover in the EU, and reputational risks.
According to the Global Trade Research Initiative (GTRI), Indian exports worth USD 1.3 billion—primarily agriculture and forest-derived products such as coffee, oil cake, paper, wood furniture, and leather—are expected to be impacted. Small and medium exporters face challenges due to high compliance costs and the complexity of proving traceability.
Currently, DDS submissions rely on manual, error-prone processes involving field agents, spreadsheets, and time-intensive workflows. TraceX’s AI tool seeks to reduce these burdens by introducing features such as automated parsing of supplier documents, AI-validated geolocation, risk assessment using global earth observation datasets, automated DDS generation matching EU TRACES formats, and real-time EU regulatory updates. The tool is expected to cut DDS preparation time by up to 80%.
Commenting on the launch, Srivatsa Sreenivasarao, Founder and CEO, TraceX, said, “While some of this functionality existed in our legacy platform, we have further added more capabilities to it by integrating advanced AI technologies to make the experience more seamless and efficient for non-EU exporters and EU Importers. The EU Deforestation Regulation presents significant economic implications for Indian exporters due to complex compliance requirements that currently need manual intervention. Managing this across fragmented, smallholder-heavy supply chains often results in data silos, manual bottlenecks, inconsistent assessments, and missed regulatory updates. Our Agentic AI Tool automates all the processes, cuts down on turnaround time, improves accuracy and reduces compliance costs.”
TraceX’s platform combines AI, blockchain, satellite monitoring, and reporting tools to help businesses improve efficiency, meet global sustainability standards, and comply with regulations such as EUDR, CSRD, and CS3D.
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