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Indian tobacco company
1. Indian Tobacco company E-Choupal largest initiative in Internet-based interventions in rural India
2. The e-choupal system was introduced by ITC in June 2000. A choupal was converted into an e-choupal by setting up a computer and Internet connectivity. conceived to tackle the challenges posed by certain features of Indian agriculture that are:- fragmented farms, a weak infrastructure, the involvement of numerous intermediaries 'e-Choupal‘s services today reach out to more than 3.5 million farmers growing a range of crops soyabean, coffee, wheat, rice, pulses, shrimp - in over 31,000 villages through 5200 kiosks across six states (Madhya Pradesh, Karnataka, Andhra Pradesh, Uttar Pradesh, Maharashtra and Rajasthan) What is ITC E-choupal
3. Pakka adat [larger traders] Kachha adat [small traders] Mandi traders Traditional Mandi culture Farmers Companies like ITC
5. To established direct links between the rural farmers and the company for the procurement of agriculture and aquaculture products, such as soybeans, coffee, and prawns. OBJECTIVE OF ITC E-CHOUPAL
6. crop prices expert opinion on future price movements Weather information scientific farming practices farmer peer groups soil-testing services Services provided byITC E-Choupal
8. Although the prices offered by ITC are not higher than those at the mandi. the farmer chooses ITC because the transactions are done closer to home the practices of weighing and quality assessment are more efficient and transparent. Farmers save on travel time and costs and incur less wastage. Their savings have been estimated at Rs 400 to Rs 500 (US$8 to US$10) per ton of soybeans. It is important to note that the final decision to sell their crops to the mandi or to ITC rests with the farmers themselves. Choice between the E-choupal and mandi
10. First mover to rural India with internet Placed a role of intermediaries to eliminate any kind of resistance from them. Re engineering not re construction -Chose chouapal [a traditional gathering place] to connect it with the new IT techniques. Inclusion/ participation - farmers as sanchalak. Accountability – purchasing process of company. Address the whole not just the one part- provision of bundle of services. An IT- driven services Key success factors
11. The sanchalaks are ITCs partners in the community, and as their power and numbers increase, there is a threat of unionization and rent extraction. The scope of the operation: the diversity of activities required of every operative and the speed of expansion create real threats to efficient management. If ITC fails to fulfill the aspirations of farmers, they will look elsewhere for satisfaction. Risk and challenges
12. ITC e-Choupal, an innovative strategy which is elaborative and extensive in rural markets so far. Critical factors in the apparent success of the venture are ITCs extensive knowledge of agriculture, the effort ITC has made to retain many aspects of the existing production system, including retaining the integral importance of local partners, the company's commitment to transparency, and the respect and fairness with which both farmers and local partners are treated. Conclusion
