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    ITC's E-Choupal Transforming Lives of Farmers: Pooja Choudhary Priyanka Kejriwal

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    Amey Rambole
    The document summarizes ITC's E-Choupal initiative, which uses internet kiosks to transform the lives of Indian farmers. E-Choupal addresses issues with the traditional Mandi system like weather-dependent crop quality, fluctuating prices, and high transaction costs for farmers. The E-Choupal system provides farmers with real-time market prices and weather information. It allows direct marketing and quality testing of crops to get better prices. This benefits both farmers through higher incomes and ITC through lower supply chain costs and better quality/quantity of crops. Over 6,500 E-Choupals across 10 states have empowered 4.9 million farmers.

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    ITC's E-Choupal Transforming Lives of Farmers: Pooja Choudhary Priyanka Kejriwal

    Uploaded by

    Amey Rambole
    227 views22 pages
    The document summarizes ITC's E-Choupal initiative, which uses internet kiosks to transform the lives of Indian farmers. E-Choupal addresses issues with the traditional Mandi system like weather-dependent crop quality, fluctuating prices, and high transaction costs for farmers. The E-Choupal system provides farmers with real-time market prices and weather information. It allows direct marketing and quality testing of crops to get better prices. This benefits both farmers through higher incomes and ITC through lower supply chain costs and better quality/quantity of crops. Over 6,500 E-Choupals across 10 states have empowered 4.9 million farmers.

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    ITC e Choupal

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    The document summarizes ITC's E-Choupal initiative, which uses internet kiosks to transform the lives of Indian farmers. E-Choupal addresses issues with the traditional Mandi system like weather-dependent crop quality, fluctuating prices, and high transaction costs for farmers. The E-Choupal system provides farmers with real-time market prices and weather information. It allows direct marketing and quality testing of crops to get better prices. This benefits both farmers through higher incomes and ITC through lower supply chain costs and better quality/quantity of crops. Over 6,500 E-Choupals across 10 states have empowered 4.9 million farmers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    227 views22 pages

    ITC's E-Choupal Transforming Lives of Farmers: Pooja Choudhary Priyanka Kejriwal

    Uploaded by

    Amey Rambole
    The document summarizes ITC's E-Choupal initiative, which uses internet kiosks to transform the lives of Indian farmers. E-Choupal addresses issues with the traditional Mandi system like weather-dependent crop quality, fluctuating prices, and high transaction costs for farmers. The E-Choupal system provides farmers with real-time market prices and weather information. It allows direct marketing and quality testing of crops to get better prices. This benefits both farmers through higher incomes and ITC through lower supply chain costs and better quality/quantity of crops. Over 6,500 E-Choupals across 10 states have empowered 4.9 million farmers.

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    ITCs E-Choupal Transforming lives of farmers

    Pooja Choudhary Priyanka Kejriwal

    Agenda
    Mandi System
    Mandi Distribution System Mandi Operation Process Limitations of Mandi System

    E-Choupal

    E-Choupal System Benefit for ITC and farmers Technology Characteristics E-Choupal Services

    Scope

    Choupal saagar Efficiency and Sustainable solution Vision Challenges

    Mandi Distribution System


    Farmer Village trader Ghani

    Wholesaler

    Regulated markets/ Mandis Trader (Pukka adatiya)

    Producer Co-ops

    Commission Agents (Kachha Adatiya)

    Private oil miller

    Cooperative Mill

    Mandi Operation process

    Inbound Logistics

    Display and inspection

    Auction

    Bagging and Weighing

    Payment

    Outbound logistics

    Limitations of Mandi System


    System
    Crop quality subject to weather conditions as crop is displayed in open weather No proper way of monitoring crop quality Fluctuating prices favoring the buyer Prices set locally and reliably tracked and reported nationally No incentive for improving quality to farmers thus lowers quality Multiple handling points requires produced to be bagged increasing loading time by 4-5 times

    Farmers
    Bear the cost of transportation ,stay, bagging and weighing Loss of 1-2 kgs per quintal as weighers under-weigh Never receive the full purchase price Farmer has to make several return trips to receive entire amount costing them time and money

    ITC
    Agents control of market leads to distortions of price and quality Agents inflate prices to trading companies Agents mix superior and inferior quality produce together Agents are aware of intra-day prices and take advantage of that Officially agents margin : 1% , ITC estimates it to be upto 3%

    ITC e-Choupal
    Started in 2000 Target: 6500 kiosks, 10 states,40000 villages Designed to address issues like Fragmented farms Weak institutions Involvement of intermediaries Information asymmetry

    Transactions through ITC e-Choupal

    e-Choupal System
    Weighing and Payment
    Sample is taken for laboratory tests Bonus Points in case of better quality

    Pricing
    Previous days Mandi Closing Price Price Communicated through Sanchalak Commission agents at mandi enter daily mandi prices

    Inspection and Grading


    Farmer brings a sample of produce to e-Choupal Sanchalak inspects the product, performs the quality check and quotes the price

    Hub Logistics
    Farmer collects payment and get reimbursed for transport Samyojaks handle hub logistics, transport, bagging etc, 0.5% commission

    Model Choupal Nagar

    Whats in it for the farmer?


    Real time information despite Distances Increased yields Improved Quality Better price Reduction in Transaction costs Faster Transaction Electronic weighing scales More Transparent and reliable system

    Whats in it for ITC?


    Better supply chain for ITCs Food & Agri Businesses in terms of Costs, Quality Intermediary cost reduced from 2.5% to 0.5% Payment for transport cost reduced by half Long term relationship with farmers Supply Security Plan future operations based on information from Sanchalaks and Samyojaks

    Transaction Cost - Mandi

    Transaction cost - Choupal

    e-Choupal Services
    Relevant & Real-time Information
    Commodity prices, Local Weather, News

    Customised Knowledge
    Farm Management, Risk Management

    Direct Marketing Channel for Farm Produce


    Lower Transaction Costs

    Supply Chain for Farm Inputs


    Screened for Quality

    Education
    Basic training to Sanchalaks

    Financial services
    Life, General, Health & Crop Insurance Easy to capture credit history, lower transaction costs

    ITC Choupal Saagar


    Made-to-design agri-business hubs ITC agri-sourcing centre Shopping centre Facilitation centre 24 Choupal Saagar hubs are already in operation in 3 states, to grow to 100 by 2010.

    Sustainable solutions
    What are the solutions?
    Knowledge transfer Co-operative application of technology Mobilization and optimization of local resources

    How is it being implemented?


    Develop water and forest resources: Soil fertility Adopt soil and water management practices Superior farming methods: Farm yields

    Efficiency of e-Choupal network


    Crop Specific Intervention Inefficiencies in supply chain Magnitude and timing of e-Choupal Low cost last mile Penetrations into areas having population < 5000

    Intelligent first mile Avenue to see farmers ideas Farmers suggesting products and services
    Bi-directional demand and supply of goods and services Build a close relationship with farmers Data mining and data warehousing: consumer behavior

    Growth of e-Choupal

    ITC e-Choupal Scale

    e-Choupal States covered Villages covered No. of e-Choupals Farmers e-empowered

    Now 10 40,000 6,500 4.9 million

    Challenges faced by e-choupal


    Check the authenticity of information As power and numbers of sanchalaks increase, there is a threat of unionization The scope of operation: the diversity of activities required of every operative and the speed of expansion Increased expectations of the farmers

    Future Strategy
    Strategy Wave 2 (Post- Pilot) Wave 3 (Post Pilot) Value proposition Identity preservation ITCs intervention Food type Grade of grain determines its end use Perishable food products Food safety Example Procurement Wheat (UP)

    Traceability

    Production level

    Shrimp

    Wave 4 (Pilot)

    Creating institutions

    Market place for multiple buyers and sellers Knowledge of business, customer and prior experience

    Markets have reached high degree Coffee of efficiency Value added products to rural India

    Wave 5 (Conceptual)

    Rural marketing and distribution strategy

    Wave 6 (Conceptual)

    Sourcing IT enabled services from rural India

    Eco-tourism Traditional Crafts, medicine

    Thank You

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