TraceX Technologies, an AgriFood and ClimateTech startup, has launched an Agentic AI Tool to automate and simplify end-to-end compliance with EU’s Deforestation Regulation (EUDR) that comes into effect from December 2025.

EU Deforestation Regulation (EUDR) mandates that any product exported to the EU should be legally sourced and deforestation-free. Non EU Exporters and EU Importers of commodities such as coffee, cocoa, palm oil, soy, wood and wood based products, rubber and cattle products, have to submit traceability proofs, verified plot-level geolocation data, Due Diligence Statement (DDS), and digital records for audits. Failing to do so can lead to shipment rejections, financial penalties of up to 4% of annual turnover in the EU and reputational damage.

A report by Global Trade Research Initiative (GTRI) indicates that Indian exports worth USD 1.3 billion are likely to be impacted due to the new regulations. Among the most affected are agriculture products such as coffee, oil cake, and forest-derived products that include paper, wood furniture, leather hides, etc. Many exporters, particularly small and medium sized companies, are struggling with high compliance costs, challenges in providing traceability proofs, and supply chain complexities.

The existing process for the submission of the Due Diligence Statement (DDS) is done through manual procedures that require field agents, spreadsheet entries and time-intensive workflows that are prone to errors. TraceX’s agentic AI tool automates these processes through interventions such as auto-parsing of supplier emails and documents for KYC, AI-validated geolocation, risk assessment via global earth observation data sets flagging high-risk suppliers or non-compliant plots before shipment, integration with the existing legacy applications, auto-generated Due Diligence Statements (DDS) that match EU TRACES formats, and Real time EU regulatory and technical updates. It cuts down DDS preparation time by up to 80%.

Commenting on the new tool, 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”