USE OF INFORMATION TECHNOLOGY IN AGRICULTURE INDUSTRY

Introduction to the Industry

Agriculture in India has a significant history.
Today, India ranks second worldwide in farm output. Agriculture and allied sectors accounted for 13.9% of the
GDP, 4.59% of the exports which has a declining trend and 44% to the total incremental NPAs of bank.

Still, agriculture is demographically the broadest economic

sector and plays a significant role in the overall socioeconomic fabric of India.

The fragmented farms are constraining the risk taking

ability of Indian farmer lacking him into the vicious cycle of: low risk taking ability, low investment, low productivity, weak market orientation, low value addition, low margin, and low risk taking ability.
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Indian Tobacco Company

India's foremost private sector companies.
Market capitalization of US $ 35 billion and a turnover
of US$7 billion.

Rated among the World's Best Big Companies, Asia's

'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among India's Most Valuable Companies by Business Today.

India's largest exporters of agricultural products. Contribution to foreign exchange earnings over the last
ten years amounted to nearly US$ 4.9 billion, of which agri exports constituted 56%.

The Company's 'e-Choupal' initiative is enabling Indian

agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet.

Research Methodology

Title of the Study : E-Choupals

Duration of the Project: 25 days Objective of Study: Illustrate the application of information
technology in agricultural sector.

Type of Research :Secondary.

Facts And Findings (ITC e-choupal)

Started in 2000 by setting up network of ICT. E-choupal is a Hindi word which means
village meeting place.

E-choupal is a virtual market place where

farmers can transact directly with a processor and can realize better price for their produce.

The idea came from the brainstorming session

done by senior executives of ITC-IBD.

E-Choupal have strengthened the basic

business by enabling reduction of costs in the supply chain and deliver superior products / services to the customers like real time information on monsoon, prices, better farming practices.
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Facts and Findings

ADVANTAGES OF E-CHOUPAL

No hierarchy of brokers.
Internet is used as the low cost of
medium of communication to provide latest information.

Immediate cash payment.

Transparent and Fast Process. Reduction of costs in the supply
chain.

Supply of quality inputs. Uses local talent and local people

and develops local leaders.
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Facts and Findings (Working of e choupal)

Facts and Findings

Cost Element Trolley Freight to Mandi Conventional Market 100 E - Choupal Nil

Filling & Weighing Labour

Labour Khadi Karai Handling Loss Sub Total

70
50 50 270 100 75 35

Nil
Nil Nil Nil 50 Nil Nil

Processor Incurs
Commission to Agent Cost of Gunny Bags Labour (Stitching & Loading)

Labour at Factory (Unloading)

Freight to Factory Transit Losses Sub Total

35
250 10 505

35
100 Nil 185

Grand Total

775

185

Analysis and Interpretation

The network of 6,500 e-Choupal centers spread across
40,000 villages has emerged as the gateway of an expanding spectrum of commodities leaving farms wheat, rice, pulses, soya, maize, spices, coffee, aquaproducts.

The reverse flow carries FMCG, durables, automotives

and banking services back to villages.

Farmers have seen a rise in their income levels because

of a rise in yields

Improvement in quality of output Fall in transaction costs Even small farmers have gained from the initiative.
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SWOT Analysis
STRENGTHS Delivery of real time information Immediate cash payment Easy access to any e- Choupal Sanchalakis educated and trained in computer operations. Low Transactional costs Transparent and Fast Process Use of Technology Provides additional information to Farmers WEAKNESS: infrastructural inadequacies including power supply telecom connectivity and bandwidth challenge of imparting skills to the first time internet users in remote and inaccessible areas of rural India.

OPPORTUNITY: Power back-up through batteries charged by Solar panels upgrading BSNL exchanges with RNS kits installation of VSAT equipment Mobile Choupal

THREAT: Bulk storage and handling hubs Demand for Unwarranted additional payments by the Sanchalaks Threats to execution management due to speed of expansion
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Conclusion
Today this initiative of ITC has empowered the lives of
people living in 10 states where 40000 villages have 6500 e choupals and around 4 million farmers have been empowered.

The initiative taken up by ITC to help the degrading

reputation of a farmer has surely made a huge difference to not only large but also medium and small scale farmer

By creating a win-win situation,it has empowered the

farmers and itself to get supplies at lower cost than its competitors.

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Bibliography
http://www.itcportal.com/itc-business/agri-business/echoupal.aspx

www.google.com www.wikipedia.com

www.echoupal.com
www.economictimes.com www.dnaindia.com

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