Rural Marketing

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7/12/12

A case on Rural Marketing: E Choupal

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ITCs supply chain of soya bean (before e-Choupal initiative)

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Farmers basically suffered from 2 DS Deep Sea Institutional support

Information of farming best practices Information on weather Quality and Information on inputs

Devil Middle man

Price Discovery Quality and Weightment Handling Loss
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Supply chain post re-engineering

Pricing
Previous days closing price used as benchmark price

for next day

Mandi prices communicated to Sanchalak through e-

Choupal portal
Sanchalak inspects the sample, assesses quality and

gives farmer a conditional quote and a note (name/village/quality tests/approx. quantity/conditional price), if farmer decides to sell to Company Logo ITC

Inbound Logistics
Farmer proceeds to the nearest ITC procurement hub

with the note

Some procurement hubs are ITC factories, others are

purely warehouse operations km radius of its farmers

ITCs aim is to have a processing centre within 30-40

Company Logo

Inspection and Grading

At the ITC procurement hub, laboratory tests are

conducted on a sample of farmers produce

To change farmers attitude and appreciating

produce quality, ITC is developing lab tests to reward farmers with reward points for better quality supply

Company Logo

Weighing and Payment

Farmers produce is weighed on electronic

weighbridge

He is then given full cash payment Freight expenses are reimbursed Appropriate documentation at each stage and

farmer is given a copy of that

Samyojaks handle cash operations Company Logo

Hub Logistics
Farmer transports his produce to the nearest

processing centre or storage hub

ITC incurs the transportation cost The farmer bears the risk of transportation until

produce is delivered and the sale is completed

Company Logo

Technological support
Nodal platform catering to commodity blending,

agricultural trading, e-choupal &rural distribution Procurement, Rural Distribution, e-Choupal Management, Exports, Insurance, Aqua Processing & Commodity blending

Integrated Business Systems for Direct Agriculture

Support for 8 local languages

Company Logo

Transaction cost in Mandi Chain (before e-Choupal)

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Transaction cost in Mandi Chain (after e-Choupal)

7/12/12 Source: Seminar on Bottom of the Pyramid and CSR,

Rural Marketing 4 As
Availability

Sanchalaks maintains continuous inventory and maintains aggregate demand

Affordability

Buys from farmers directly, weighs electronically

Acceptability

Provides updated information on weather, financial services, lower transaction cost

Awareness
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