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PRESENTATIONBUSINESS
ENVIRONMENT
By: Prabhat Kumar
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CSR
ICT INRURALAREA
VAS INAGRICULTU
RE
e -Choupal
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OPPORTUNITY
72% of India lives in its villages
After USA maximum area of arable land.
Rich & Diverse Agro-climatic Zones
60% of workforce related to Agriculture Agriculture accounts for 24% of GDP
Therefore, Low Rural per capita incomes
Large domestic consumption base
Nearly 200 Million people live at the margin
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The State of IndianFarming
Small Landholdings
Low literacy , Low Income
Over dependence on Rain Weak Infrastructure : Physical , Social
Underserved on supply side
Monopoly channel on demand side
Over dependence on intermediaries, lack ofinformation.
Low productivity Low risk taking ability Lowshare of consumer spend
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Low Risk Appetite
Weak Market
Orientation
Low InvestmentLow Margins
Low ProductivityLow Value Addition
Caught in a viciouscycle of
underdevelopment
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Value Chain-Conventionalsystem
AgriInputRetailer
Farmer
Processor
Kaccha
Adat
Pakka
Adat
Money Lender
Trader
Broker
DeptofAgriVLW
Input
Cos
Seed
Fertilizers
Chemicals
Practices
Stockist
Govt
Univ.Met Dep
MSP
Insurance
Practices
Weather
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IDEA GENERATION
The idea of creating and leveraging anelectronic market place came from thebrainstorming session done by senior
executives of ITC-IBD(international businessdivision)
Unleash the power of the small-scaleentrepreneur
Quality of agricultural produce BOP Market
Unrestrained supply of grains for export
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Project Goals
Enhance farm productivity
Disseminating latest information on district level weatherforecasts for short & medium terms
Best practices in farming (generic as well as specific)
Supply of quality inputs (seed, herbicide, fertilizer,pesticides etc) in the village itself
Improve price realization for farm produce
Minimize transaction costs in marketing farm produce
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Making available live data on markets viz. Location / Buyer wiseprices offered & International market prices of relevant agri-commodities.
Historical & Up-to-date information on supply & demand
Expert opinion on expected future price movements
Buying output at the farmers doorstep Through transparent pricing& weight management practices
Eliminatewasteful and parasitic intermediation
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The Business Model
The idea To saturate a particular sector with e-choupalswhere one choupal would serve 10 villages within a 5 kmradius.
The village e -choupal is housed in the Sanchalak/ Co-ordinators house.
The sanchalak is central to the business model. Such a rolehelps ITC by:
i. Providing trust among the farmers on behalf of thecommunityii. Removing the need of a physical infrastructure such asthe kioskiii. As a communication channel between the illiteratefarmers and ITC
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AgriInputRetaile
r
Farmer
Processor
Kaccha
Adat
Money Lender
Trader
Broker
Dept
ofAgriVLW
Input
Cos
Seed
Fertilizers
Chemicals
Practices
Stockist
Govt
Univ.
Met DepMSP
Insurance
Practices
Weather
Choupal
Sanchalak
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The Mandi Chain
Farmer Incurs
Trolley Freight to Mandi = 100
Filling & Weighing Labour = 70
Labour Khadi Karai = 50
Handling Loss = 50
Rs per MT
270
Processor
Incurs
Commission to Agent = 100
Cost of Gunny Bags (net) = 75
Labour (Stitching, Loading) = 35
Labour at Factory (Unload) = 35
Freight to Factory = 250Transit Losses = 10
505
Total Chain 775 V V2
http://../BACKUP/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/CHOUPAL_PRICE_INFERMATION.MPGhttp://../BACKUP/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/CHOUPAL_PRICE_INFERMATION.MPG8/8/2019 eChoupal s Presentation
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The eChoupal Chain
Farmer Incurs
Trolley Freight to Mandi = 100
Filling & Weighing Labour = 70
Labour Khadi Karai = 50
Handling Loss = 50
Rs per MT
270
Processor
Incurs
Sanchalak = 50
Commission to Agent = 100
Cost of Gunny Bags (net) = 75
Labour (Stitching, Loading) = 35
Labour at Factory (Unload) = 35Freight to Factory 135 = 250
Transit Losses = 10
505
Total Chain775185
185
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Technology used in the E-choupal
Power constraints- Sporadic availability of power(unreliable) and substandard quality of power UPS backup. Now solar battery chargers are used
Telecom Infrastructure: Usually poor infrastructure. Asof now rural telecommunications infrastructure is designed
to carry voice traffic only. Transmission speed being slow-restricts internet access Initial solutions to this constraint was to help C-DOT
improve their RNS kits to allow for increased transfer upto 40 kbps from the earlier 12 kbps (Dial-Up connection)
Dial-Up to V SAT Applications : The Web site www.soyachoupal.com
Weather Typically 24- to 72-hour weather forecasts areavailable along with an advisory. Weather data isobtained from Indian Meteorological Department
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Pricing: The e-Choupal Web site displays both the ITC procurement rate andthe local mandi rates. ITCs next day rates are published every evening. Theprices are displayedprominently on the top of the Web page on a scrollingticker.
News For the soyachoupal Web site, relevant news is presented from varioussources. In addition to agriculture related news, this section also includes
entertainment, sports, and local news. Best practices: Best farming practices are documented by crop. Here again,
the information presented is action-based. For instance, this section not onlyhighlights what kind of fertilizers to use but also how and when to use them
Q & A:This feature enables two-way communication. Here a farmer can postany agriculture related question he needs answered.
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Critical success factors
Comprehensive knowledge of ruralmarkets
Designing a Win-Win transaction model
Leveraging the logistics channels Selection of Sanchalak
Evolving an appropriate user interface
Bottom-up model for entrepreneurship
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The ITC eChoupal Scale
Farmers- 4 million
States 10 (Madhya Pradesh, Haryana, Uttarakhand,Karnataka, Andhra Pradesh, Uttar Pradesh, Rajasthan,
Maharashtra, Kerela and Tamil Nadu) Villages- 40,000
Kiosks- 6500
Crops - soyabean, coffee, wheat, rice, pulses, shrimp.
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Challenges
Ban on purchase of wheat & rice
Entry of competitors like TATA, M&M,IIFCO
Seasonal variations Shift of young people in villages near
cities from agriculture
Rural FMCG Market Unorganized fruits & Vegetable market
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New initiative
Rural jobs and employability
I. Rozgarduniya.com
II. Skills training business
Agri Services
I. Nokia life tools
II. Personalized agri services( 2 way
information flow by mobile technology)
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New initiative
Rural Market
I. Choupal saagar/ Haats
II. Forward interaction with horticulturefarmers
III. Export of processed food and fruits.
IV. Market for FMCG products.
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In Conclusion
Agriculture a source of livelihood formillions of small farmers
Rural wealth creation in agriculturethrough securing empowerment,collaboration and competition
ITC eChoupal - a transformationalinitiative for sustainable development ofsociety