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Yelles Kumar B.N. (DM-05011) Mahendra B (DM-05-010) Sataya Narayana (DM-05-014) Sai Nag (DM - 05-068)

1. The document describes ITC's e-Choupal initiative, which developed an Internet-based supply chain for rural farmers in India. 2. Launched in 2000, e-Choupal provides farmers with relevant market information through kiosks in over 40,000 villages, allowing them to get better prices for crops like soybeans. 3. The initiative aims to address challenges small farmers face and improve their competitiveness by reducing intermediaries and increasing access to information.

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81 views

Yelles Kumar B.N. (DM-05011) Mahendra B (DM-05-010) Sataya Narayana (DM-05-014) Sai Nag (DM - 05-068)

1. The document describes ITC's e-Choupal initiative, which developed an Internet-based supply chain for rural farmers in India. 2. Launched in 2000, e-Choupal provides farmers with relevant market information through kiosks in over 40,000 villages, allowing them to get better prices for crops like soybeans. 3. The initiative aims to address challenges small farmers face and improve their competitiveness by reducing intermediaries and increasing access to information.

Uploaded by

pratap_sivasai
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Yelles Kumar B.N.

(DM-05011)
Mahendra B (DM-05-010)
Sataya Narayana (DM-05-014)
Sai Nag(DM -05-068)
 Developed by ITC agri-business division
 Brainchild of S Siva Kumar
 Promoted by Y.C.Deveshwar, Chairman, ITC
 ITC’s Agri Business Division, one of India’s
largest exporters of agricultural commodities
 Launched in June 2000
 Largest Internet-based initiative in rural India
 E-Choupal as a more efficient supply chain
aimed at delivering value
 ‘e-Choupal’ makes use of the physical
transmission capabilities of current
intermediaries – aggregation, logistics, counter-
party risk and bridge financing –while
disintermediating them from the chain of
information flow and market signals.
 ‘e-Choupal’ ensures world-class quality in
delivering all these goods & services through
several product / service specific partnerships
with the leaders in the respective fields, in
addition to ITC’s own expertise.
 Reach out to over 4 million farmers growing a
range of crops - soyabean, coffee, wheat, rice,
pulses, shrimp
 In over 40,000 villages through 6500 kiosks
across ten states.
 Madhya Pradesh, Haryana, Uttarakhand,
Karnataka, Andhra Pradesh, Uttar Pradesh,
Rajasthan, Maharashtra, Kerala and Tamil
Nadu).
 To address challenges faced by small farmers
due to institution voids
 Low risk appetite
 Numerous intermediaries and infrastructure
bottlenecks
 To manage the intricate dynamics of multiple
agri-value chains for global competitiveness
 To suit the socio-economic character of
different regions
1. Relevant & Real-time Information
2. Customised Knowledge
3. Supply Chain for Farm Inputs
4. Direct Marketing Channel for Farm Produce
5. Marketing Services
6. Governance services
7. Health with Private Health Service Providers
8. Choupal Sagar services
 Helps in enhancing the competitiveness of Indian
Agriculture
 Farmers have more Knowledge of Process and could have
a much better control over the timing of making its trade.
 Reduces monopoly power of CAs(Commission Agents),
which cut the costs for both farmers and soybean
processor.
 Empowering rural India with the relevant information.
 Farmers can even use it for buying relevant supplies which
they need.
 Improvement in the productivity
 Social stability
 Payment on delivery
 Lower cost of input for farmers as well as ITC.
 Traditional Supply Chain
 Farmers had to travel 30-50kms to unload
their harvest.
 Transaction was between farmer and CA.
 Price discovery mechanism was auctioning
 Use of manually operated balance scale
 By every transaction farmers use to lose 0.5%
of his original lot.
 Old supply chain management –
Village A > Mandi B > Factory C (Old)
 Reorganized SCM-
Village A > ITC Hub > Factory C (New)
 Transparency – E-Choupal turned the Sanchalak into an
entrepreneur
 The web technology brought price discovery to the village
level
 The farmers could know what prices he would get at an ITC
Hub
 Reports on nearby Mandis
 By following the real time prices on the websites the farmers
could decide when to sell
 Computerized weighbridge
 The farmers received cash on delivery
 Reimbursement of transportation cost
 Commission agents became Samyojak
 ITC firstly launches e-choupal at the pilot stage
in a states(M.P.,U.P.,A.P.,Karnataka), this
amounts to 50 to 100 e-choupals.
 Stage of Product life cycle starts with
Soyabean Saturation stage
Coffee & aquaculture Pilot stage
Wheat Critical Mass stage
 Business model incorporated “E” into the age old
tradition village E-choupals.
 Reorganization of the Supply Chain.
Village A > Mandi B > factory C (Old)
Village A > Hub B > Factory C (New)
 It was developed with full involvement of Farmers.
 In depth knowledge of Rural Markets
 User friendly websites
 Improved logistic facility
 Selection of Sanchalak and Samyojaks
 Evolving an appropriate user interface
 Vast scope for rural development
 Creating market through improved farm income, whilst placing
ITC in a unique position to reap benefits through its closeness to
the potential consumer.
 Bring up IBD in ITC’s realm as well as in global commodities
exporting market
-Reach the goal of Rs.2000 corers in revenue by the year 2005
 Achieve full business potential.
- Increase the efficiency of Agricultural SC
-End unfair practices.
-Make the cycle productive for both farmers and soyabean
processors.
-Price discovery to the village level.
 Networking the villages the Internet
 Disintermediation
 To increase the export shares
 To create awareness about the unpredictable
weather in India
 To reach farmers quicker for matter related to
best practices
 Wider range of information
 To solve any kind of query by the farmers
 Avoiding farmers exploitation by the commission
agents
 Power is usually available for only a few hours a day at on a
sporadic schedule.
 e-choupal computer cannot always be accessed when
information is needed.
 Phase imbalances leads to damage of equipments.
 Telecommunication infrastructure in villages is poor.
 Illiteracy about computer in rural areas as well as rural
population has low trust on electronic system
 Improper knowledge about rural market.
 Vicious circle of intermediaries (Adatiya & Brokers)
 Lack of rules and regulation related to electronic choupal
 Mistrust about inspection, testing and weighing of produce
on centers.
 Last mile low cost solution
 Full Service approach
 Demand aggregation
 Third party seller
 Extensive use of technology
 Access to information about customers
 Pull based strategy

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