e choupal presentation
TRANSCRIPT
PRESENTED BY: -
SECTION G, MBA CLASS OF 2011
AMITY BUSINESS SCHOOL
SCENARIO OF INDIAN AGRICULTURE
Agriculture is the mainstay of the majority of the
villagers & provides employment to about 66% of
workforce in India
Agriculture produces 23% of India’s GDP services.
Despite green revolution Indian agriculture sector has
not been able to achieve the world level productivity.
Close to 33% of arable land is held in units of less than
2 hectares per owner
Extensive dependence on Monsoon
The State of Indian Farmer Small Landholdings
Low literacy , Low Income
Weak Infrastructure : Physical , Social
Underserved on supply side
Over dependence on intermediaries
Low productivity – Low share of consumer spend
They do not have bargaining power
They do not have access to real time information
They cannot get customized knowledge advise
FARMER MANDI BUYER
Information and Prices
Payments, Labor, Transportation and Storage
0.5%
e-CHOUPAL
Sanchalak
Information
Information to Farmer
Input
Output
Sell Output
Kiosks
WORKING MODEL
THE CONCEPT
Choupal is a Hindi word which means “village meeting place”. Market is a meeting place where vendors and customers come together to do transactions.
E-Choupal is a virtual market place where farmers can transact directly with a processor and can realize better price for their produce.
E-choupal, the unique web based initiative of ITC’s Agri Business Division, offers the Farmers of
India all the information , products and services they need to enhance
farm productivity, improve farm-gate price realization and cut
transactions costs.
E-Choupal, a new business model
INFORMATION AVAILABLE (e-CHOUPAL
Sanchalak
Farmers
Interface
VSAT
Includes ITC server, database and connections to partner sites.
TECHNICAL AND APPLICATION ARCHITECTURE
Allows ITC to communicate with a million farmers
Enables real time information access
Price discovery
Captures farm-level intelligence
Improves productivity through agricultural education
Orchestrates network that makes e-Choupal possible
IT enabled network of partnerships:
Agricultural research centers, input providers, banks,
agents, and farmers
• Market Adding Six New Choupals every day•Intend Scaling up to 100,000 in 15 states by 2010
E- Choupal Now Next 5 Years
States Covered 10 15
Villages Covered 40000
100000
No. of e-Choupals 6500
20000
Farmers e-empowered
4 Mn.
10 Mn.
CURRENT NETWORK SIZE
Farmers’ Gains Access to information
Empowered decisions
Improved agriculture
Economic benefits through
lower transaction costs and
process efficiencies
Served with dignity
Knowledge bundled sale of
goods and services
Hope for a brighter future
50
50
70
100
00000
50
100
150
200
250
300
Cost
s (Rs
./ Me
tric T
on)
Mandi e-Choupal
Handling and Transit Losses Labor Costs
Bagging and Weighing Transportation
ITC’s Gains Lower procurement costs
Direct interaction with
farmers - Control on
quality & supply security
Low cost distribution
channel
Access to market
intelligence
1070
75
250
0850
100
0
100
200
300
400
500
600
Cos
ts (R
s./ M
etri
c To
n)
Mandi e-Choupal
Commission Handling and Transit Losses
Labor Costs Bagging and Weighing
Transportation
•Better Returns•Education•Social Security
•Lower Cost of Inputs•Better Relations•Supply Security•Improvement in
Productivity•Reduction in Disparity•Reduction in Hoarding & Blackmarketing
•Lower cost of products•Social Stability•Check Migration to Cities
SOCIAL IMPACT OF e-CHOUPAL
CONCLUSION
THANK YOU