Welcome .Presented by: KAPIL PATIL SECTION 1

E-choupal & opportunity for ABM manager

CONTENTS.. Meaning of e-Choupal. Condition of Indian farmer. Solution by e-Choupal e-Choupal operation Opportunities to Agri Business Managers.

MEANING OF e-CHOUPAL e-

CONDITION OF THE INDIAN FARMERS Fragmentation, Dispersion, Heterogeneity Most of them are small (1.5 ha average holding) o They do not have bargaining power All of them live in away from cities (600,000 villages) o They do not have access to real time information The circumstance of each one is very different (agroecological conditions, resources) o They cannot get customized knowledge advise And, all this is further compounded by weak infrastructureo Physical, Social, Institutional

THE e-CHOUPAL SOLUTION e An initiative of ITC Ltd. to link directly with rural farmers for procurement of agricultural or aquaculture produce like soybean, wheat, coffee & prawns. The initial launch in June 2000. e-Choupal was conceived to tackle the challenges posed by the unique features of Indian agriculture- characterized by fragmented farms, weak infrastructure & the involvement of various intermediaries.

EXECUTION ISN T EASY! No telecom reach We use Satellite communications

No Power; Erratic Voltage where it exists We use Solar Power

First Time Computer Users Lot of effort on Capacity Building

Resistance from traditional middlemen Farmers dealt with them!

THE ECHOUPAL INFRASTRUCTURE

ICT Kiosk with Internet Access In the house of one trained farmer, Sanchalak Within walking distance of target farmers

Warehousing Hub Managed by the erstwhile middleman, Samyojak Within tractorable distance of target farmers

TRANSACTIONS THROUGH ITC e-CHOUPALSell:-Price discovery @ village, choice, efficiency Knowledge (Customized) Information (e.g., Price Discovery) Transactions MandiChoupal Saagar

Farmer

PRODUCT & SERVICE PROVIDERS

Sanchalak Samyojak

VILLAGE

TOWN

PAN-INDIA

MANDI OPERATION PROCESS

Disadvantages:- Long distances between mandis - Monopolization of information by the trader communities - Fragmented payments by traders to framers

e-CHOUPAL SUPPLY CHAIN

Benefits:- Able to differentiate between Risks in Farming and Financial risks in Trading [ Possible by correcting the information asymmetry] - Also allows the farmer an enlarged choice set whether he wants to sell to ITC or to the mandi

COSTSMandi Chain Choupal Chain

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OPPORTUNITIES FOR ABM MANAGER CHOUPAL SAAGAR physical infrastructure hub unique rural hypermarket set new benchmarks for rural consumers also incorporates farmer facilitation centres 24 Choupal Saagar hubs are already in operation in 3 states, to grow to 100 . Managing goods coming from e-houpal

CHOUPAL FRESH food wholesale and retail stocking fresh horticulture produce like fresh fruits and vegetables. Retail manager Cold chain manager

THESE ACTIVITIES INCLUDE Managing e-Choupal as a channel Managing resources and commodities, Maintaining retail business Trading of the commodities coming out from e-Choupal etc.

OPPORTUNITY TO BECOME ENTREPRENEURS IIM-A (ABM) student Kaushalendra Kumar started Kaushalendra foundation. Operating in Bihar Collecting farmers Reduce middle man Beneficial for farmer

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