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Itc-Echoupal: Presented By: Ashish Goyal

ITC's e-Choupal initiative aimed to address problems in the traditional agricultural supply chain like long distances to markets, price manipulation, and lack of timely payments. The initiative set up internet kiosks called e-Choupals in villages run by local farmers called sanchalaks. This allowed farmers to get real-time market prices, place orders, and receive payments directly. Key benefits included reduced costs, increased profits for farmers, and expanded markets for ITC. The initiative saw strong growth, reaching over 4 million farmers across 10 states through 6,500 e-Choupals by now.

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303 views

Itc-Echoupal: Presented By: Ashish Goyal

ITC's e-Choupal initiative aimed to address problems in the traditional agricultural supply chain like long distances to markets, price manipulation, and lack of timely payments. The initiative set up internet kiosks called e-Choupals in villages run by local farmers called sanchalaks. This allowed farmers to get real-time market prices, place orders, and receive payments directly. Key benefits included reduced costs, increased profits for farmers, and expanded markets for ITC. The initiative saw strong growth, reaching over 4 million farmers across 10 states through 6,500 e-Choupals by now.

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ashishmission2020
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© Attribution Non-Commercial (BY-NC)
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ITC-eChoupal

Presented By:
Ashish Goyal
Contents:
 Choupal: Tradition
 Traditional supply chain
 Problems faced by traditional supply chain
 Discuss the business benefits of echoupal Initiative
 Discuss the success factors for the ITC Initiative “E-
choupal”
 Changes bought in the supply chain through e-choupal
 Role of samyojak
 Network
Choupal: Tradition
 Followed traditional way
of harvesting crops and
selling in the local market.
 The word choupal is a
Hindi word which
constituted an informal
assembly or a meeting
place where knowledge
could be shared and
captured.
Traditional supply chain:
 After harvest, farmers hauled their loads to closest mandi which
was around 30 to 50kms.

 Price discovery mechanism through auctioning.

 Auction process: Government appointed bidder sets the


initial bid
 Then govt licensed bidders i.e commission agents (CA) bid
upwards until the crop was sold.
 After auction, transaction was between

transaction Commission agents


farmers (CA)
ITC

Commission agents Crops sold


ITC
(CA)
Payment received
Problems faced by traditional supply
chain:
 Distance to each mandi was 30-50kms.
 Adulteration by CA’s.
 After the auction, the weight of the crop was
manipulated by inaccurate scales by CA’s.
 Farmers had to wait 2-3 days in the crowded market
place.
 Sometimes payment was not immediate.
 No storage facility for the crops and hence had to be
sold because of it was perishable.
Changes
bought in the
supply chain
through e-
choupal:
farmer1
farmer2

farmer3
Internet
sanchalak
ITC processing facility

farmer4

farmer5
ITC hubs
 These are nothing but the
processing units where farmer
could bring crops and have
direct transaction with ITC.

i) computerized weighbridge
ii) immediate payment
iii) reimbursement of
transportation cost
iv) soil testing lab
Role of Samyojak
 The commission agents (CA) are entitled with the
new name as ‘‘samyojak’’.

 They comprised major responsibilities


like
i) Setting up the echoupals.
ii) Facilitating ITC’s purchasing transactions
iii) Helping with ITC’s selling transaction.
iv) Assisting in the selection of sanchalak
Key components of ITC e-choupal
implementation that lead to success
 Use of digital technology ( retain many
aspects of existing production system)
 customer designed supply chain
 “one-stop-shop” feature.
 User friendly website.
 Advanced transportation facility
 Significance of sanchalak and samyojak.
contd..
 “ideal price” for the crops produced
 Insurance facility
 Credit facility
 Superior product
 Relationship benefits.
 Transparency
 Warehouse facility.
Role of technology
 Provided certain key information areas like
- Weather page:
It provides localized forecasts about the weather to the farmer.

- Best practices page:


 Will get to know about different practices followed by other farmers.
 Comparisons between “ideal” practices and “actual” practices are
also described.
 Webpage is in Hindi vernacular.

- Crop Information page:


 Information about the requirement of soil testing.
 Also the required action that has to be taken after testing.
Business benefits of e-choupal Initiative
 Growth in customer network i.e
In mid-2003, e-Choupal services reached more than 1
million farmers in nearly 11,000 villages, and the system is
expanding rapidly.

 Direct contact with farmers enabled knowledge sharing.


 Increase in profits
 Expansion into other potential markets.
 Higher quality led to more competitive pricing in
International market.
 Disintermediation (no middleman)
Network
e-Choupal Now

States covered 10

Villages covered 40,000

No. of e-Choupals 6,500

Farmers e-empowered 4 million

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