ITC e-Choupal

Presented By:-
Pritish Baruah (UR18017)
Arjya Pragyan Mohanty (UR18033)
Daivakari Kapoor (UR18036)
About ITC e-Choupal
● World’s largest rural digital infrastructure- empowering 4 million farmers
● Tackles the issues of weak infrastructure, fragmented farms and
numerous intermediaries
● Is a virtual marketplace where farmers can transact directly with a
processor and realize better prices for their produce
● Bottom up model
● Virtual vertical integration
Description
● Objective of e-choupal
- Creating shareholder value with the social aim of alleviating poverty
- Involvement of farmers designing and management of e-choupal, sense
of ownership among the farmers , e-choupal as new age cooperative
● Infrastructure-
- Hardware - computer, printer, VSAT (very small aperture terminal), solar
panels, and batteries
- Software - Web portals, training and communication
- Telecommunication - upgraded BSNL exchanges with RNS kits

● Stakeholders Involved- ITC (International Business Division),

Meteorological Deptt, Agri Universities, Farmers, Sanchalaks, Sanjoyaks
Business Model
● Leverages IT to cluster all value chain participants
● Blend of click and mortar
● Village internet kiosks managed by sanchalaks
● Real time and customised information provided to farmers to take
decisions and align their farm output - control over better quality,
productivity
● Benefits from lower net procurement costs
● Efficient transaction processing system and a low-cost distribution
channel - Earns service charges from all participating companies
● Disintermediation savings, Freight costs, Quality Control and Risk
Management through virtual vertical integration and horizontal spread
integration
e-choupal Supply Chain Model
Digital Divide Framework
Digital Divide Components
● Physical access to ICTs: sets up physical service support at choupal
through sanchalak
● Technology illiteracy: sanchalak (able to read and write) has access to
functional computer
● Information illiteracy:
❖ sanchalaks access the information (about market prices, weather and soil
conditions, modern farm practices and farm inputs) and facilitate its
dissemination to farmers
❖ enhance the ability of farmers to take decisions and align their farm
output with market demand and secure quality and productivity
Digital Divide Dimensions
CONTD.
● Economic: using e-commerce to bring farmers and rural producers to the
mainstream markets
● Political: govt regulated markets, APMC, PACS. Traders have a say and
not farmers
● Social: both small and large farmers have access to information, price
and market means
● Cultural: timely real time and customised information in local language
provided to both small and large farmers
● Spatial: generally located within walking distance or a 5 km radius

Note: there was no mention of caste and class but only large and small farmers
 ICTD Evolution Framework
ICTD 1.0 to ICTD 2.0 :

1. Passive consumer to active (involved) consumer

2. Key Application : Content driven to Services driven
3. Supply driven approach to centralized and demand driven
4. ICT 1.0 early and mid 2000s : Internet kiosks as main instrument with
infomediary
5. ICT 2.0 : Choupal Pradarshan Khet ( Technology in Use)
6. ‘Community Based’ to ‘Individual’ Service Delivery : Shift from desktop based
interface to mobile platform (no sanchalak required)
7. Business Model Innovation : ITC e Choupal 4.0 Hand holding of Agri
Startups Tech provider to Digital platform provider
8. Pro poor to Para poor
9. Development Paradigm : Between human development and development 2.0
Innovation
● Blockchain for SCM couples with IoT for monitoring and tracking of
produce from choupal to marketplace, ensure transparency
● Power backup through solar panels to deal with erratic power supply
● Inclusion of mobile based choupals will reduce dependence on
sanchalaks however India being digitally literate is a rosy picture
● Use of VSAT for studying weather conditions, initially relying on
Meteorological Deptt for information
● Use of sensors to examine soil health and nutrients
● Equipments for quality assessment check of farm produce
● Use of Blockchain also for agricultural finance, will have access to credit
history, helps farmer and institution in planning agriculture and also crop
insurance claims
Conclusion

1. Covering 35000 villages serving 4 million farmers

2. Hand holding of 20 agri tech start-ups
3. High dependance on electricity and telecommunication
4. Economic Sustainability : Rs. 30 lakh in mid 2000 to Rs. 1.5 at present per
kiosk set up cost
5. Reduced information asymmetry
6. Scalability : Expansion beyond 21 States ; challenges in north east
7. Replicable with necessary customization
8. Farmers productivity and incomes improved
Thank You