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Print this page Home > Businesses > Agri Business > e-Choupal

e-Choupal

The Big Picture: ITC's Agri Business Division, one of India's largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis.

The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. The Value Chain - Farm to Factory Gate:

'e-Choupal' also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources. Such a market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk management, larger investments and higher quality and productivity. Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. This will create another virtuous cycle propelling the economy into a higher growth trajectory. The Model in Action: Appreciating the imperative of intermediaries in the Indian context, 'e-Choupal' leverages Information Technology to virtually cluster all the value chain participants, delivering the same benefits as vertical integration does in mature agricultural economies like the USA.

'e-Choupal' makes use of the physical transmission capabilities of current intermediaries aggregation, logistics, counter-party risk and bridge financing -while disintermediating them from the chain of information flow and market signals.

With a judicious blend of click & mortar capabilities, village internet kiosks managed by farmers - called sanchalaks - themselves, enable the agricultural community access ready information in their local language on the weather & market prices, disseminate knowledge on scientific farm practices & risk management, facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers' doorsteps (decision making is now information-based). Real-time information and customised knowledge provided by 'e-Choupal' enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality & productivity. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices. As a direct marketing channel, virtually linked to the 'mandi' system for price discovery, 'e-Choupal' eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces transaction costs. 'e-Choupal' ensures world-class quality in delivering all these goods & services through several product / service specific partnerships with the leaders in the respective fields, in addition to ITC's own expertise. While the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value.

The Status of Execution:

Launched in June 2000, 'e-Choupal', has already become the largest initiative among all Internet-based interventions in rural India. 'e-Choupal' services today reach out to over 4 million farmers growing a range of crops - soyabean, coffee, wheat, rice, pulses, shrimp - in over 40,000 villages through 6500 kiosks across ten states (Madhya Pradesh, Haryana, Uttarakhand, Karnataka, Andhra Pradesh, Uttar Pradesh, Rajasthan, Maharashtra, Kerela and Tamil Nadu). The problems encountered while setting up and managing these 'e-Choupals' are primarily of infrastructural inadequacies, including power supply, telecom connectivity and bandwidth, apart from the challenge of imparting skills to the first time internet users in remote and inaccessible areas of rural India.

Several alternative and innovative solutions - some of them expensive - are being deployed to overcome these challenges e.g. Power back-up through batteries charged by Solar panels, upgrading BSNL exchanges with RNS kits, installation of VSAT equipment, Mobile Choupals, local caching of static content on website to stream in the dynamic content more efficiently, 24x7 helpdesk etc. Going forward, the roadmap includes plans to integrate bulk storage, handling & transportation facilities to improve logistics efficiencies.

As India's 'kissan' Company, ITC has taken care to involve farmers in the designing and management of the entire 'e-Choupal' initiative. The active participation of farmers in this rural initiative has created a sense of ownership in the project among the farmers. They see the 'eChoupal' as the new age cooperative for all practical purposes. This enthusiastic response from farmers has encouraged ITC to plan for the extension of the 'eChoupal' initiative to altogether 15 states across India over the next few years. On the anvil are plans to channelise other services related to micro-credit, health and education through the same 'e-Choupal' infrastructure. Another path-breaking initiative - the 'Choupal Pradarshan Khet', brings the benefits of agricultural best practices to small and marginal farmers. Backed by intensive research and knowledge, this initiative provides Agri-extension services which are qualitatively superior and involves pro-active handholding of farmers to ensure productivity gains. The services are customised to meet local conditions, ensure timely availability of farm inputs including credit, and provide a cluster of farmer schools for capturing indigenous knowledge. This initiative, which has covered over 70,000 hectares, has a multiplier impact and reaches out to over 1.6 million farmers.

Would he get a fair price for his crop? Farmer Ashutosh Dixit was never sure. Not any more. Thanks to ITC.

Awards ITC's e-Choupal has won numerous awards:

United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008at Cairo for ITC's exemplary initiatives in agri business through the e-Choupal. The Ashoka - Changemakers 'Health For All' Award 2006 for the Rural Health Services model for delivery of health services through the e-Choupals. The Stockholm Challenge 2006. This award is for using information technology for the economic development of rural communities. Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations. The first of its kind in India, based on parameters of number of lives impacted, degree of impact on organization and environment, uniqueness, leverage of resources and whether it was scalable and sustainable, e-Choupal was declared as one of 'India's Best Innovations'. The Development Gateway Award 2005 (previously known as the Petersberg Prize) for the trailblazing e-Choupal initiative. ITC is the first Indian company and the second in the world to win this prestigious award.

The 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Company received this award for its e-Choupal and social and farm forestry initiatives that are impactfully transforming lives and landscapes in rural India. The Corporate Social Responsibility Award 2004 from The Energy and Resources Institute(TERI) for its e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector. The inaugural 'World Business Award', instituted jointly by the International Chamber of Commerce (ICC), the HRH Prince of Wales International Business Leaders Forum (IBLF) and the United Nations Development Programme (UNDP). This award recognises companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The 'Enterprise Business Transformation Award' for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of Pennsylvania. PC Quest's IT Implementation Award in the 'Best Project' category. The Golden Peacock Innovation Award 2004. The NASSCOM award for 'Best IT User in FMCG' in 2003. The Award is a recognition of ITC's successful integration of its IT usage with its business processes. The Seagate Intelligent Enterprise of the Year 2003 Award, for the most innovative usage of Information Technology.

IT Guru Mohanbir Sawhney's article on e-Choupal Chairman Y C Deveshwar speaks on the e-Choupal

Links to Press Releases :ITC wins Top UNIDO Award for e-Choupal Dec 01, 2008 ITC's e-Choupal expands to Tamil Nadu Jul 31, 2008 ITC e-Choupal wins Development Gateway Award 2005 Sep 16, 2005 ITC wins TERI Award for Corporate Social Responsibility (CSR) Jun 01, 2005 ITC wins Golden Peacock Global Award for CSR May 13, 2005 ITC's 'e-Choupal' wins Wharton-Infosys Business Transformation Award Jun 03, 2004 ITC's e-Choupal wins inaugural 'World Business Award' May 19, 2004 UK grant for promoting rural insurance on e-Choupal Jan 21, 2004 ITC wins 'Intelligent Enterprise of the Year Award' for e-Choupal Nov 29, 2003

Links to Press Reports :Sluggish reforms hit e-choupal expansion: ITC The Hindu Business Line

Nov 21, 2011

ITC, HUL aim for bigger rural push The Financial Express How innovation really works Business Today ITC e-Choupal to quintuple reach Economic Times Ecosystem Marketing - The New Equation Brand Equity, Economic Times Worth a hill of soyabeans The Economist Monster.com and ITC e-Choupal collaborate to launch Rozgarduniya.com Financial Express e-Choupal among the '10 biz ideas that changed India' The Week e-Choupal lauded by President of India Jun 05, 2007 e-Choupal: Networking rural India NDTV.com Internet brings prosperity for farmers CNN-IBN ITC plans 7500 farm demo plots Business Standard COLLABORATION is at the heart of NEW AGE MARKETING Economic Times ITC starts farm extension services The Hindu Business Line Lintas Media arm, e-choupal join to launch Bharat Barometer blonnet.com E-Choupal eyes power, health & BPO The Economic Times ITC-IBD to set up e-choupals in Telangana Business Standard Fuelling latent rural demand The Economic Times ITC to set up a shopping complex at Ujjain Business-standard.com ITC-IBD to extend e-Choupal network to three Telangana districts Business Standard $200,000 more for e-choupals Business Standard Now, e-choupal goes pay-to-use Hindustan Times ITC holds out mall hope for villagers The Telegraph Rewarding resourcefulness, lifting lives

Jun 08, 2011 May 12, 2010 Apr 12, 2010 Mar 24, 2010 Jan 07, 2010 Aug 12, 2009 Aug 31, 2008 Jun 05, 2007 May 17, 2007 Feb 23, 2007 Nov 22, 2006 Aug 14, 2006 Aug 14, 2006 Aug 08, 2006 Jul 24, 2006 Jul 10, 2006 Jul 07, 2006 Mar 30, 2006 Mar 23, 2006 Sep 17, 2005 Jul 29, 2005 Jul 04, 2005 Jul 02, 2005

The Hindu Business Line Ground reality Business Standard ITC e-choupal on awards shortlist Business-standard.com e-choupal to cast the rural Net wide Business-standard.com Global award for ITC's e-choupal Business-standard ITC e-Choupals to touch more lives The Asian Age Call of the Countryside India Today ITC Signs MoU with MCX teamindia.net Give them empowerment first The Hindu Business Line Grain revolution The Hindu Business Line APMC Act review may abolish mandi tax Business Standard From toothpaste to tractors, this rural mall has it all Outlook CHAUPAL SAGAR - Unlocking rural markets Businessworld ITC sows seeds of hypermarkets in rural India The Economic Times BEST PROJECT - e-Choupal, ITC International Business Division PCQUEST Cigarettes and Virtual Cathedrals The Economist Empower the poor for growth Hindustan Times Farmers e-nabled - Markets Not Antipathic To Masses The Economic Times ITC connects Rajasthan to e-choupal The Business Standard Distribution's Disruptive Duo Business Today Magazine Everybody Wins The Economic Times (Brand Equity) The Village People The Economic Times (Brand Equity) The eChoupal experiment has the potential to transform the farm sector The Times of India Indian Soybean Farmers Join the Global Village

Jun 28, 2005 Jun 23, 2005 Jun 02, 2005 May 16, 2005 Apr 11, 2005 Dec 13, 2004 Dec 05, 2004 Nov 19, 2004 Nov 19, 2004 Nov 02, 2004 Oct 04, 2004 Sep 20, 2004 Sep 10, 2004 Jun 09, 2004 Jun 03, 2004 May 27, 2004 May 26, 2004 May 21, 2004 Jan 18, 2004 Jan 14, 2004 Jan 14, 2004 Jan 12, 2004 Jan 01, 2004

The New York Times Traditional farmers to new-age marketers Please visit our site : www.echoupal.com TOP Home | About ITC | Sustainability | Businesses | Shareholder Value | Careers | Experience ITC | Contact Us | Insider Trading - Caution | Sitemap | Subscribe to updates Website optimised for Internet Explorer 7.0 with 1024 x 768 Terms of Use | Privacy Policy screen resolution | ITC Limited 2011