Erika M.

Lorenzo
Case study on ITC e-Choupal
1. What is the innovation of the e-Choupal?
e-Choupals provides the use of internet to connect different farmers with large
firms. It also provides information regarding the current agricultural research, and
the global market.
2. Discuss the paradox of Indian Agriculture?
Agriculture contributes 23% of Indias GDP, and it employs 66% of their
workforce.
3. Why is soya an important innovation in the Indian oilseed complex?
40% of the increased output was attributable to the introduction of new crops
(soya and sunflower). Soya therefore represents an important innovation in the
Indian oilseed complex that is resulting in better utilization of scarce resources
and greater cropping intensity.
4. Describe the marketing processes before the introduction of e-Choupal.
there are three commercial channels for the products: manis, traders, or
eventual resale to crushers, and producer-run cooperative societies for crushing
in cooperative mills. The farmers traditionally keep a small amount for their
personal consumption and get the produce processed in a small-scale job-shop
crushing-plant called ghanti.
5. Why is the mandi not an optimal procurement channel?
For every process in the mandi operations, there are always sources of
inefficiency.
6. What were the advantages of ITC's competitors? How did ITC address
them?
When ITC entered the industry, produce was brought and crushed by small
crushers who were also traders. ITC began with buying and exporting DOC in
product dynamics. ITC then began renting processing plant time and buying
soya from mandis. ITCs procurement has grown rapidly since, and its initiative
has seen the introduction of professional practices, transparency, and formal
contractual relationships between agents and buyers.

7. How did ITC "re-engineer as opposed to reconstruct"?

When the current ITC system failed, they did not just reconstruct it, they reengineer it. ITC get all the good things about the failed system and dispose those
that made it wrong.
8. How did ITC "address the whole, not just a part"?
The farmers universe consists of many activities, ranging from procuring inputs
to selling produce. Today the village trader services the spectrum of the farmers
needs. He is a centralized provider of cash, seeds, fertilizers, pesticides, and
marketing.
9. Was it wise for ITC to install an IT-driven solution where most people
would not?
There must be a reason for them to install IT-driven solution where most people
wouldnt.
10. Why does the ITC insist that the sanchalaks NOT give up farming?
ITC insists that at no time should the sanchalaks give up farming, for this would
compromise the trust the sanchalak commands. The fact that the sanchalak
works on commission could undermine hi credibility.
11. Why did the samyojaks introduce the ITC to the sanchalaks?
It will give them a good feedback, thus it will help their image look positive. Also,
they will earn revenue in helping sanchalaks.
12. Describe the new ITC value chain. How different is it from the former
value chain?
The chain is lessened by one. From 6 processes, it is now only 5. There are also
no sources of inefficiency indicated.
13. What is the social impact of the e-Choupals?
The introduction of e-Choupals in the society made them improve in agriculture,
have a better way of living, and have a brighter future.

14. Describe Wave 6 of the e-Choupal. Do you think it is feasible?

The first wave tells about acquiring the right crops. The 2 nd wave talks about the
safeguarding of identity inside the chain. The third talks about traceability. The
fourth deals with creating institutions. The fifth talks about marketing strategy and
distribution strategy. And the last talks about the other services. Yes it is feasible.
It is taken step by step from the identification of crops to the additional services it
can offer.
15. Can something similar to an e-Choupal be implemented in the
Philippines?
Yes. Chain management and procurement system is very popular here in the
Philippines.