INDIA — Agri-food and climate technology company TraceX Technologies has introduced an AI-powered compliance platform to help Indian exporters prepare for the European Union’s Deforestation Regulation (EUDR), which takes effect in December 2025.
The new Agentic AI Tool automates the preparation and submission of Due Diligence Statements (DDS), documents required to prove that exported goods are legally sourced and free from deforestation.
The platform also integrates traceability checks into existing business systems, aiming to reduce compliance preparation time by up to 80 percent.
EUDR: What exporters must comply with
Under the EUDR, commodities such as coffee, cocoa, palm oil, soy, rubber, cattle products, and wood-based items must come from land that has not been deforested after a specified cut-off date.
Exporters to the EU must provide verified geolocation data of production sites, traceability documents linking products back to their source, and a signed DDS in the EU TRACES system format.
Non-compliance can lead to shipment rejections, fines of up to 4 percent of a company’s EU turnover, and reputational risks.
According to the Global Trade Research Initiative (GTRI), Indian exports worth about US$1.3 billion are potentially affected. The most exposed sectors include agricultural products like coffee and oil cake, along with leather, paper, and wood furniture.
Challenges for Indian exporters
Many small and medium-sized exporters rely on manual data entry, spreadsheet tracking, and field-based document collection. These methods are time-consuming, prone to human error, and difficult to scale across fragmented supply chains involving numerous smallholder farmers.
Compiling a single DDS can take compliance teams weeks. In some cases, exporters have reported spending more than 200 hours gathering and verifying supplier data for one shipment. This increases costs and risks delays, particularly when working with multiple intermediaries.
How the Agentic AI tool works
TraceX’s new platform automates key compliance steps, from capturing Know Your Customer (KYC) data through supplier communications to validating geolocation tags that ensure farm and plot boundaries are accurately mapped.
The system also uses satellite imagery and earth observation datasets to assess the deforestation risk of suppliers before shipments are made.
In addition, the platform provides real-time updates from EU regulatory bodies, enabling exporters to respond quickly to any policy changes, and integrates seamlessly with existing enterprise resource planning (ERP) and certification systems.
The system auto-generates DDS reports that meet the EU TRACES format and stores all supporting documentation for the mandatory five-year audit period.
According to TraceX, the goal is to help exporters avoid costly delays, maintain market access, and meet growing consumer expectations for sustainable sourcing.
“Our latest platform extends beyond our previous capabilities by embedding advanced AI functions to simplify compliance for exporters,” said Srivatsa Sreenivasarao, Founder and CEO of TraceX Technologies.
“The EUDR brings complex requirements, particularly for supply chains with many small-scale producers. Automating these workflows removes bottlenecks and improves readiness for inspections.”
Growing demand for tech-driven compliance
The launch comes as global supply chain regulations tighten around environmental and sustainability criteria.
In recent months, exporters across Asia, Latin America, and Africa have been seeking technology solutions that can provide verifiable data quickly, both to meet EUDR requirements and to strengthen buyer confidence.
Industry observers note that while some larger exporters already use digital traceability platforms, adoption among small and mid-sized companies remains limited due to cost and technical barriers.
With the EUDR deadline approaching, market demand for affordable, scalable compliance tools is expected to rise.