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E-Choupal: Transforming Rural Marketing

E-Choupal is an initiative by ITC Limited to directly procure agricultural products from farmers in rural India via the internet. Computers with internet access are installed in rural areas, managed by a local farmer "Sanchalak", to provide farmers information on prices and farming practices. This allows farmers to negotiate directly with ITC Limited rather than relying on intermediaries, increasing their incomes. The system also reduces procurement costs for ITC Limited while empowering farmers. There are currently 6,500 E-Choupals operating and plans to expand to 20,000, improving conditions for millions of Indian farmers.

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Archana Dash
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76 views11 pages

E-Choupal: Transforming Rural Marketing

E-Choupal is an initiative by ITC Limited to directly procure agricultural products from farmers in rural India via the internet. Computers with internet access are installed in rural areas, managed by a local farmer "Sanchalak", to provide farmers information on prices and farming practices. This allows farmers to negotiate directly with ITC Limited rather than relying on intermediaries, increasing their incomes. The system also reduces procurement costs for ITC Limited while empowering farmers. There are currently 6,500 E-Choupals operating and plans to expand to 20,000, improving conditions for millions of Indian farmers.

Uploaded by

Archana Dash
Copyright
© Attribution Non-Commercial (BY-NC)
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

E-CHOUPAL

PRESENTED BY
ARCHANA DASH
I.MBA DEPT.
ROLL.NO-208MBA003
RURAL MARKETING
Rural marketing are defined as those segments of
overall market of any economy, which are distinct
from the other types of market like stock market ,
commodity markets or labor economics.
INTRODUCTION
Rural products of India are unique, innovative and have
good utility and value. Large number of these products
like handicrafts item, food products, clothes, embroideries
and other products sustain a significant segment of the
population in the rural areas.
RURAL MARKET IN INDIA
E-Choupal
It is an initiative of ITC limited, a large multi-business
conglomerate in India, to link directly with rural
farmers via the internet for procurement of
agricultural and aquaculture products like soya
beans, wheat, coffee and prawns.
E-Choupal was conceived to tackle the challenges
posed by the unique features of Indian agriculture,
characterized by fragmented farms, weak
infrastructure and the involvement of numerous
intermediaries.
The program involves the installation of computers with
internet access in the rural areas of India to offer farmers
up-to-date marketing and agricultural information.
PROBLEMS OF E-CHOUPAL
Traditionally, commodities were procured in
Mandies( major agricultural marketing centre in rural
areas of India) where the middleman used to make most
of the profit through the use of unscientific and
sometimes outright unfair means to judge the quality of
the product to set the price. The difference in price
between good quality and inferior quality was little, &
therefore there is no incentive for the farmers to invest &
produce good quality output. With e-choupal the farmers
have a choice & the exploitative power of the middleman
is neutralized.
EFFECTS OF E-CHOUPAL
ITC ltd has now provided computers and internet
access in rural areas across several agricultural regions
of the country, where the farmers can directly negotiate
the sale of their products with ITC ltd.
This online access enables farmers to obtain information
on mandi prices & good farming practices & to place
orders for agricultural inputs like seeds & fertilizers.
This helps farmers improve the quality of their products
& helps in obtaining a better place.
PROCESS OF E-CHOUPAL
Each ITC ltd kiosk having internet access is run by a
“Sanchalak” (a trained farmer). The computers is housed
in the Sanchalak’s house & is linked to the internet via
phone lines. Each installation serves an average of 600
farmers in the surrounding ten villages within about a 5
km radius. The Sanchalak bears some operating cost but
n return earns a service fee for the e-transactions done
through his e-choupal.
HOW IT IS ADVANTAGEOUS TO FARMERS AND COMPANIES?
Since the introduction have seen a rise in farmers income levels
because of a rise in yields, improvement in quality of output & a
fall in transaction costs, even small have gained from the initiative.
Customized & relevant knowledge is offered to the farmers despite
heterogeneous cultures, climates & scale of production.
The system saves procurement costs for ITC ltd. The farmers do not
pay for the information & knowledge they get from E-choupals; the
principle is to inform empower & composite. At the same time ITC
ltd has obtained benefits from the program.
: Elimination of no value added activities.
: value added products traceable to farm practices.
CONCLUSION
There are presently 6500 E-choupals in operation,
ITC ltd plans to scale up to 20000 E-choupals by
2012 covering 100,000 villages in 15 states,
servicing 15 million farmers.
U…
K YO
TH AN

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