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
CONTD…

 Lack of Information
 Local Mandis
dominated by
Commission Agents
 Commission Agents
major link between
Farmer and Buyers.
 Spoilage, Wastage
further hamper Net
Productivity
FARMER  MANDI  BUYER
 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%
Role Of e-
Choupal
 e-CHOUPAL

Informatio
n and
Prices

Payments, 0
Labor, .5%
Transportation
and Storage
WORKING MODEL
Kiosks Sanchalak

Information

Information to Farmer

Input
Sell Output
Output
e-CHOUPAL PLATFORM
FARMER  e-CHOUPAL  BUYER
TRANSACTION COSTS
CONTD…
INFORMATION AVAILABLE (e-CHOUPAL)
TRAINING THROUGH ICT
 CURRENT NETWORK SIZE
• 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 4000 10000

0 0
No. of e-Choupals 6500 20000

Farmers e-empowered 4 Mn. 10 Mn.

BENEFITS OF e-CHOUPAL

 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

CHALLENGES FACED BY e-CHOUPAL
SOCIAL IMPACT OF e-CHOUPAL

•Better Returns
•Education
•Social Security
•Lower cost of products
•Social Stability
•Check Migration to Cities

•Lower Cost of Inputs

•Better Relations
•Improvement in •Supply Security
Productivity
•Reduction in Disparity
•Reduction in Hoarding &
Blackmarketing
Thank You