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ITC's Agri-Business ,[object Object],[object Object],[object Object]
Problem in agri-business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
To enhance rural incomes, there is a need for a system which can… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
3 Key Principles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Execution isn’t Easy! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Production Channel Prior to e-Choupal Farmer Regulated Markets (15-75%) Trader Commission Agent Wholesaler (20-80%) Village Trader Ghani Producer Coop (3-5%) Cooperative Mill
The e-Choupal Business Model Farmer Regulated Markets (Fair Market Price) Private Miller Commission Agent (hired by ITC) Village Trader Ghani Producer Coop (Negotiated Price) Cooperative Mill E-Choupa l ITC ITC Commission
Transaction Costs in Mandi Chain Soybeans Example Farmer Incurs Trolley Freight to Mandi  = 120 Labour    =  50 Kacchha Adat  = 150 Handling Loss  =  50 Rs per MT 370 Processor Incurs Commission to Agent  = 100 Cost of Gunny Bags (net)  =  75 Freight to Factory  = 120 Handling at Mandi  =  40 335 Total Chain 705
Transaction Costs in Choupal Chain Soybeans Example Farmer Incurs Trolley Freight to  ITC Hub  = 120 Labour    =  50 Kacchha Adat  = 150 Handling Loss  =  50 Rs per MT 370 Processor Incurs Commission to  Sanchalak   = 100 Cost of Gunny Bags (net)  =  75 Freight to Factory  = 120 Storage & Handling at Hub =  40 335 Total Chain 705 120 50 Cash Disbursement Costs  =  50 215 335
e Choupal benefits the farmer, by ,[object Object],[object Object],[object Object],[object Object],[object Object]
e Choupal benefits ITC, by ,[object Object],[object Object],[object Object],[object Object],[object Object]
Thank you

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ITCs Agri Business

  • 1.  
  • 2.
  • 3.
  • 4.
  • 5.  
  • 6.
  • 7.
  • 8. Production Channel Prior to e-Choupal Farmer Regulated Markets (15-75%) Trader Commission Agent Wholesaler (20-80%) Village Trader Ghani Producer Coop (3-5%) Cooperative Mill
  • 9. The e-Choupal Business Model Farmer Regulated Markets (Fair Market Price) Private Miller Commission Agent (hired by ITC) Village Trader Ghani Producer Coop (Negotiated Price) Cooperative Mill E-Choupa l ITC ITC Commission
  • 10. Transaction Costs in Mandi Chain Soybeans Example Farmer Incurs Trolley Freight to Mandi = 120 Labour = 50 Kacchha Adat = 150 Handling Loss = 50 Rs per MT 370 Processor Incurs Commission to Agent = 100 Cost of Gunny Bags (net) = 75 Freight to Factory = 120 Handling at Mandi = 40 335 Total Chain 705
  • 11. Transaction Costs in Choupal Chain Soybeans Example Farmer Incurs Trolley Freight to ITC Hub = 120 Labour = 50 Kacchha Adat = 150 Handling Loss = 50 Rs per MT 370 Processor Incurs Commission to Sanchalak = 100 Cost of Gunny Bags (net) = 75 Freight to Factory = 120 Storage & Handling at Hub = 40 335 Total Chain 705 120 50 Cash Disbursement Costs = 50 215 335
  • 12.
  • 13.