I.T.C E-CHAUPAL

I.T.C E-CHAUPAL

I.T.C Indian tobacco company Presence in tobacco, hotels , paper

boards ,foods , fashion retailing and commodity export

Annual sale of 2 billon

International business division Started in 1990 Div of ITC engaged in exports of range of

agricultural commodities Contributes over 60% of foreign exchange

earning

E-chaupal

E-CHAUPALE-CHAUPAL Chaupal is a hindi word which means a

village meeting place, and E here stands for electronic so it is a village meeting place on a electronic platform

It is a virtual market place where vendors and customers come together to do transactions

E-CHAUPALE-CHAUPAL It is a virtual market place where farmers

can transact directly with a processor and can realize better price for their products

ITC used a SYMBIOTIC-MICRONODAL model. As both the parties were making profits at different levels

Types of E-Chaupals

Shrimp Coffee

Wheat Soyabean

Large farmers

Large produceSmall farmers

Focused approach Feed ingredients

(soybeans, rapeseed meal)

Food grains

(rice, wheat, pulses)

Edible nuts

(sesame seeds, groundnuts)

Marine products

(shrimps ,prawns)

Conventional business model

Disadvantages of the conventional business model

Too many intermediaries Information asymmetry caused by

intermediaries as they block flow of information to farmers

E-Chaupal modal

Advantages No hierarchy of brokers Internet is used as a low cost medium of

communication providing latest information Intermediaries are still used for physical

delivery of produce maintaining low cost

E-choupals are set up by ITC with solar power back up and VSAT connectivity. The equipment cost for the E-choupal is borne by ITC.

Allow farmers to compare global and local market price (mandi)

Advantages

Advantages Actual procurement is done at factories and

warehouse hubs. The initial logging is done through the e-choupal, which provides price information and therefore price certainty

To farmers they give access to operational information developed by ITC experts, pertaining to cropping, seeds, fertilizers and so on.

Future plans

e-Choupal Now Next 5 Years

States covered 10 15

Villages covered 40,000 100,000

No. of e-Choupals 6,500 20,000

Farmers e-empowered 4 million 10 million

Thank you