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eChoupal: Transforming Rural Farming

This document summarizes ITC's eChoupal initiative to connect farmers in rural India to market information and supply chains. The key points are: 1) eChoupal provides internet access in villages, allowing over 4 million farmers to access real-time commodity prices, best practices, and sell directly to ITC, eliminating middlemen. 2) Previously, farmers faced issues like weight and price manipulation by commission agents at local markets. eChoupal establishes a new supply chain where farmers can weigh and sell produce directly to ITC for immediate payment. 3) While eChoupal created benefits for farmers and ITC, issues around technology reliability, sanchalak conflicts of interest, and

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Jessica Miller
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49 views13 pages

eChoupal: Transforming Rural Farming

This document summarizes ITC's eChoupal initiative to connect farmers in rural India to market information and supply chains. The key points are: 1) eChoupal provides internet access in villages, allowing over 4 million farmers to access real-time commodity prices, best practices, and sell directly to ITC, eliminating middlemen. 2) Previously, farmers faced issues like weight and price manipulation by commission agents at local markets. eChoupal establishes a new supply chain where farmers can weigh and sell produce directly to ITC for immediate payment. 3) While eChoupal created benefits for farmers and ITC, issues around technology reliability, sanchalak conflicts of interest, and

Uploaded by

Jessica Miller
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Presented by

Zainab Salman
Hammas Ali Naik
Muhammad Mudassir
Iqbal

INTRODUCTION
Developed by ITC Agri-business division
The word Choupal means village
meeting place
Launched in 2000
Benefits 4000 villages and 4 million
farmers

INTRODUCTION
Rural India's largest internet-based
intervention
Farm linkages in 14 states covering
soya, wheat, marine products, coffee
etc. Focus on value added
commodities.
Over 40,000 villages linked through
6500 eChoupals servicing over 4
million farmers.

OLD VALUE CHAIN


Farmers

Harvest
Load on
Tractors or
Bullocks
Mandi

30-50
Kilometers

Commissio
n agent

Buy from
Farmers(Credit)
Corruption in
weighing/prices
ITC

Reimburse th
money paid

Mandi Process

Government
Appointed
Bidder Sets
Initial Bid

CA bids on Tractor to
behalf on CAs shop
company
in Mandi

Issues With Old System


Farmer
Weight
Disparity
Credits
Price
Uncertainty
Actual Weight
Manipulated

CA
Pocketed price
difference
Bought at
lower price
from farmers

New Supply Chain


Village

Informed Choice
Real time prices
available

ITC Hub

Beans Weighed
Immediate Payment

Factory

Cutting MiddleMen
Decreasing
Procurement

New Supply Chain


Sanchalak, Samyojak turned
profits
2 to 5 % per transaction
Added Value to Supply
Chain

E Choupal
Welcome
Made
d Farmers farmers
Into
their
Communi customer
ty
s

Value
Creation

E Choupal- How did they


do it?
Agri Supply
Chain

Farmers
come
directly

No
Commissio
n

No
MiddleMen

Testes for
Quality

Benefits of eChoupal
Farmer
Weather
Forecasts
Best Practices
Soil Samples
Cheating of CA
No Credits
Access to
Fertilizers and
Herbicides

ITC
Elmination of
intermediaries
High Quality
Crops
Sales of
Fertilizers and
Herbicides
ITC as a sense
of Pride

Flaws With eChaupal


INFORMATION
AUTHENTICITY

PROBLEMS
WITH
INTERNET
CONNECTIVITY

OBSOLESCENC
E OF THE
TECHNOLOGY

SAMYOJAKSHIRING THE
OLD CORRUPT
ONES

UNIONIZATION
BY
SANCHALAKS

CONFLICT OF
INTEREST

Recommendation
3G enabled
mobile
NEW AND
phones
CHEAPER

Lesser
TECHNOLOG
investment
Y
Reduced
dependence
on
sanchalaks

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