ITC e-Choupal

BACKGROUND Agriculture produces 23% of India’s GDP Provides employment to about 66% of

workforce in India Extensive dependence on Monsoon Illiteracy and black-marketing prominent

FARMER MANDI BUYER

Lack of Information Local Mandis

dominated by Commission Agents

Commission Agents major link between Farmer and Buyers.

Spoilage, Wastage further hamper Net Productivity

CONTD…

Inspection by Sight or Moisture meter Crops affected by Wastage and Spillage Malpractices by Agents Multiple points of handling Untimely Payments Mixing of Premium quality produce with

inferior to inflate prices No Direct interaction with farmers High dependence on Commission

Agents(Adatiya’s) Commission 2.5% to 3%

FARMER MANDI BUYER

Role Of e-Choupal

Information and Prices

Payments, Labor, Transportation and Storage

0.5%

e-CHOUPAL

Sanchalak

Information

Information to Farmer

Input

Output

Sell Output

Kiosks

WORKING MODEL

e-CHOUPAL PLATFORM

FARMER e-CHOUPAL BUYER

TRANSACTION COSTS

CONTD…

INFORMATION AVAILABLE (e-CHOUPAL)

TRAINING THROUGH ICT

• 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

On time Information Payment on Delivery Transportation Costs are reimbursed No Malpractices Reduction in transportation cycle Reduction in wastage and spillage Lower Cost of Inputs for Farmer as well as ITC Supply Security Save of US$6(Rs 270) per metric tonne

BENEFITS OF e-CHOUPAL

CHALLENGES FACED BY e-CHOUPAL

•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

Thank You