MBA(MM)2014-16

INSTITUTE OF MANAGEMENT STUDIES, DAVV

RURAL MARKETING

(e-Choupal Model of ITC)

Submitted To:Ms. Bhavana Saun

Submitted By: Aditi Kothari

Sanket SomaniShivangi Shukla

Agriculture

23 per cent of the GDP

feeds a billion people

employs 66 per cent of

the workforce

The Agricultural System

Vital to

india

an initiative of ITC Limited

links directly with rural farmers via the InternetProcurement of agricultural productstackles the challenges posed by Indian agricultureoffer farmers up-to-date marketing and agricultural information

INTRODUCTION

E-choupal

E-Choupal

Traditionally • The commodities( soyabeans, wheat) were procured

in 'mandis' • The middleman used to make most of the profit.• Middlemen used unscientific means to judge the

quality of the product to set the price.• Difference in price for good quality and inferior quality

was less.• There was no incentive for the farmers to invest and

produce good quality output.

With e-Choupal, the farmers have a choice and the exploitative power of the middleman is neutralized.

E-Choupal Model

E-Choupal Model• centered on a network of e-Choupals.• Information centers equipped with a computer connected to

the Internet, located in rural villages.• A local farmer acting as a sanchalak(coordinator) runs the

village e-Choupal with the help of computer usually located in the sanchalak's home.

• ITC also incorporate a local commission agent, known as the samyojak (collaborator), into the system as the provider of logistical support.

• ITC has plans to saturate the sector in which it works with e-Choupals, as a farmer has to travel no more than five kilometers to reach at one.

• The company expects each e-Choupal has to serve about 10 villages within a five kilometer radius.

• Today its network reaches more than a million farmers in nearly 11,000 villages through 2,000 e-Choupals in four states like Madhya Pradesh, Karnataka, Andhra Pradesh, and Uttar Pradesh and the network is expanding rapidly.

• The e-Choupals in Madhya Pradesh serves about  about 500-700 farmers in 10 villages while another such e-Choupal serve about 5,000 farmers in 10 villages.

• The average usage is about 600 farmers per e-Choupal in the soy cropping area, with fewer in wheat, coffee, and shrimp areas.

Working

• ITC Limited has now established computers and Internet access in rural areas across several agricultural regions of the country, where the farmers can directly negotiate the sale of their produce with ITC Limited.

• Each ITC Limited kiosk having an access to Internet is run by a Sanchalak-a trained farmer.

• The computer housed in the sanchalak's house is linked to the Internet via phone lines and serves an average of 600 farmers in the surrounding ten villages within about a 5 km radius.

Benefits

Development Benefit:• Gives farmers more control over their choices, a

higher profit margin on their crop and access to information that improves their productivity.

• The system links farmers and their families to the world.

• Increases trust and fairness.• Potential for improving crop quality contributes in

making Indian agriculture more competitive.• sanchalaks track future prices on the Chicago

Board of Trade as well as local mandi prices.• Significant step toward rural development.

RE-ENGINEERED SUPPLY CHAIN SYSTEM OF E-CHAUPAL

Supply

Chain

2. Q & C Grading

3.Procurement

4. Payment

5. Hub logistics

1.FAQ Pricing

Thank You