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
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