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Itc E-Choupal: Presented by Amrin Beg Baishakhi Larma

ITC launched the e-Choupal initiative in 2000 to create virtual marketplaces connecting farmers directly to buyers. Over 6,100 e-Choupals now operate in 10 states, serving over 4 million farmers. The e-Choupal model addresses inefficiencies in Indian agriculture by providing farmers internet access, training, and price information to sell crops directly. Farmers benefit through higher prices and access to inputs, while ITC benefits from lower procurement costs. Future plans include expanding services like credit, insurance, and education through the existing e-Choupal infrastructure.

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Amrin Mim Beg
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650 views26 pages

Itc E-Choupal: Presented by Amrin Beg Baishakhi Larma

ITC launched the e-Choupal initiative in 2000 to create virtual marketplaces connecting farmers directly to buyers. Over 6,100 e-Choupals now operate in 10 states, serving over 4 million farmers. The e-Choupal model addresses inefficiencies in Indian agriculture by providing farmers internet access, training, and price information to sell crops directly. Farmers benefit through higher prices and access to inputs, while ITC benefits from lower procurement costs. Future plans include expanding services like credit, insurance, and education through the existing e-Choupal infrastructure.

Uploaded by

Amrin Mim Beg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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I T C E -CH O U PA L

PRESENTED BY
AMRIN BEG
BAISHAKHI LARMA
AN OVERVIEW : ITC

Imperial Tobacco Company of India Limited (1910–


1970)
India Tobacco Company Limited (1970–1974)
I.T.C. Limited (1974–2001)
ITC limited (2001–present)
Public company ( Industry: conglomerate)
Consumer goods, Cigarette, Apparel, Education, IT etc
ITC E - CHOUPAL
E-Choupal means “village meeting place”
Launched in June 2000
E -Choupal is a virtual market place where farmers can
transact directly with a processor and can determine the best
price for their product.
There are 6,100 e-Choupals in operation in 35,000 villages in
10 states
E- Choupal service has reach out to over 4million farmers
growing a range of corps such as soyabean, rice, pulses, coffee
E-CHOUPAL BUSINESS MODEL
The e-Choupal idea cuts through the basic and historic
problems crippling Indian agriculture.
E-Choupal makes use of the physical transmission strengths of
the current intermediaries .
Under e-Choupal, ITC has set up Internet kiosks in villages
managed by the famers known as ‘sanchalaks ’.
The farmers can order quality agricultural inputs online.
E-Choupal links the Indian farmer to the consumers in local and
global markets
CONT..
ITC is now restructuring the e-choupal model, version 3.0
Emerging areas like telemedicine, e-Governance,
education and entertainment will soon ride on the Internet,
web-casting and video conferencing infrastructure of e-
Choupal
E-choupal provides customized knowledge and real time
information.
PROJECT GOAL

The first of the e-choupal is delivery of real-time


information independent of the transaction
Providing an empowered choice to the farmer where
and when to sell their crop
The second goal is to facilitate collaboration
between the many parties required to fulfill the
spectrum of farmer needs
SANCHALAK
Sanchalak is a identified and trained farmer within the e-
choupal
Registered sanchalak has fully access to the e-choupal
portal
ITC provide training to the sanchalaks on basis how to run
computer, functions of the e-choupal website, basic
business skills and as well as quality inspection if crops
Sanchalaks have basic education about how to read and
write
SAMYOJAK

A local commission agent known as samyojak


Samyojak provides logistic support in to the system
Fulfil critical jobs like transportation and also gives
some inputs to village and Sanchalak selection when
a new e-choupal set up.
FUTURE PLANS WITH PARTNER BANKS

Insurance and Risk management service


Non-cash loans for firms inputs
Create entrepreneurs by giving loans to Sanchalaks
Based on sanchalaks recommendation provide direct loan
to the farmers
FUTURISTICS SERVICES OF E-CHOUPAL
Product and service distribution to the rural market:
Choupal sagar
Sanchalaks
Micro Marketing:
Product/service demons
Marketing and Brand building activities
Pilots:
Bhoomi
E-health service along with private health service providers
E-education
Rural BPO
ENCOURAGE LOCAL PARTICIPATION

Growth in rural income


Market led business
Win-Win situation
Cost reduction
WIN-WIN SITUATION
Farmers:
Helps to enhance farming productivity trough bundling knowledge
with deliveries of farm inputs

provide better prices for their produced and developed productivity of


firms
Farmers can save almost 2.5% over the mandi system.
The company:
 ITC benefits from the lower net cost of procurement
having eliminated costs in the supply chain that do
not add value.
 ensured more profits and larger share of commodity
exports
 Lower transaction cost pays only 0.5% commission
to the Sanchalak
 Ensuring a satisfied customed base by providing
quality agriculture inputs and purchasing quality
crops
COST OF E-CHOUPAL

Each e- Choupal costs between US$3,000 and


US$6,000 to set up and about US$100 per year to
maintain.
E-CHOUPAL SYSTEM SUPPORT
ITC has about 15 engineers who provides field
infrastructure support to e-Choupals
Each e-Choupals is visited about 2times in a month
for infrastructure support
The estimated support cost is rs300 for per visit
The average calls is about one or two in a day
PROBLEMS OF E-CHOUPAL

Power supply
Infrastructures
Bandwidth and Telecom connectivity
Less skills to run computer and internet usage for
first time
CONCLUSION
ITC has plan for the extension of the ‘e-Choupal' initiative
to altogether 15 states across India over the next few years
Plans to channelize other services like micro-credit, health
and education through the same 'e-Choupal' infrastructure.
Another initiative is 'Choupal Pradarshan Khet', brings
the benefits of agricultural best practices to small and
marginal farmers.

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