ITC e-Choupal

BACKGROUND

Agriculture produces 23% of Indias 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(Adatiyas)
Commission 2.5% to 3%

Role Of e-Choupal

e-CHOUPAL

Information
and Prices

Payments,
Labor,
Transportation
and Storage

0.5%

WORKING MODEL
Sanchalak

Kiosks
Information

Information to Farmer
Input
Output

Sell 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

States Covered

10

15

Villages Covered

40000 100000

No. of e-Choupals

6500

Farmers e-empowered

4 Mn. 10 Mn.

Years

20000

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

Lower cost of products

Social Stability
Check Migration to Cities

Improvement in Productivity
Reduction in Disparity
Reduction in Hoarding &
Blackmarketing

Better Returns
Education
Social Security

Lower Cost of Inputs

Better Relations
Supply Security

Thank You