HAPPY TEACHER’S

DAY

I.T.C E-CH0UPAL

INDIRA SCHOOL OF CAREER DEVELOPMENT

I.T.C

Indian tobacco company. Chairman: Y.C. Deveshwar Presence in tobacco, hotels, paper boards,

foods, fashion retailing and commodity export.

Annual sale of $ 2 billion.

International Business Division

Started in 1990. Division of ITC engaged in exports of range

of agricultural commodities. Contributes over 60% of foreign exchange

earning.

E-ChoupalE-Choupal

E-ChoupalE-Choupal

Choupal is a hindi word which means a village meeting place, and “E” here stands for electronic so it is a village meeting place on a electronic platform.

It is a virtual market place where vendors and customers come together to do transactions.

E-ChoupalE-Choupal

It is a virtual market place where farmers can transact directly with a processor and can realize better price for their products.

ITC used a SYMBIOTIC-MICRONODAL model. As both the parties were making profits at different levels.

The E-Choupal Services

Relevant & Real-time Information Commodity prices, Local Weather, News

Customized Knowledge Farm Management, Risk Management

Supply Chain for Farm Inputs Screened for Quality, Demand Aggregation for Competitive

Prices & Efficient Logistics Direct Marketing Channel

Lower Transaction Costs, Better Value through Traceability Products access @ door step @ reasonable prices

Conventional Business Model

Disadvantages of the Conventional Business Model

Too many intermediaries. Information asymmetry caused by

intermediaries as they block flow of information to farmers.

E-Choupal Model

Advantages

No hierarchy of brokers. Internet is used as a low cost medium of

communication providing latest information. Intermediaries are still used for physical

delivery of produce maintaining low cost .

E-choupals are set up by ITC with solar power back up and VSAT connectivity. The equipment cost for the E-choupal is borne by ITC.

Allow farmers to compare global and local market price (Mandi)

Advantages

Advantages

Actual procurement is done at factories and warehouse hubs. The initial logging is done through the e-choupal, which provides price information and therefore price certainty.

To farmers they give access to operational information developed by ITC experts, pertaining to cropping, seeds, fertilizers and so on.

Transaction Costs in Mandi ChainSoybeans Example

Farmer Incurs

Trolley Freight to Mandi = 120Labour = 50Kacchha Adat = 150Handling Loss = 50

Rs per MT

370

ProcessorIncurs

Commission to Agent = 100Cost of Gunny Bags (net) = 75Freight to Factory = 120Handling at Mandi = 40

335

Total Chain 705

Transaction Costs in Choupal Chain

Trolley Freight to ITC Hub = 120Labour = 50

Kacchha Adat = 150Handling Loss = 50

Commission to Sanchalak = 100Cost of Gunny Bags (net) = 75Freight to Factory = 120Storage & Handling at Hub = 40

50

Cash Disbursement Costs = 50

The E-Choupal Infrastructure

ITC 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 ( coordinator ) Within tractorable distance of target farmers.

The Privileged Assets of E-Choupal1. ITC Infrastructure:

a. Computerb. Internetc. VSATd. Power Backup : Solar Cells and UPS

2. Physical Reach:a. Choupals within walking distanceb. Multipurpose WH hubs within tractor able distance

3. Key Intermediaries:a. Sanchalak (1 per cluster of 5-6 villages) b. Sanyojak (1 per group of 30-40 choupals)

Key Success FactorSelf Sufficient Infrastructure

Power Connectivity

Training

24 Hubs Upgraded to Malls

FACILITIES AT CHAUPAL SAGAR

A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS

TRAINING FACILITIES FOR FARMING COMMUNITY ON SCIENTIFIC FARMING PRACTICES

GODOWNS FOR STORAGE OF FARM PRODUCE

INFORMATION CENTER FOR ONLINE WEATHER INFORMATION

CONTINOUS SERVICES FROM 6AM- 9PM

CSR Initiatives through e Choupal : “Sunerha Kal”

Sunerha Kal (CSR) Initiatives focus on Improve Farmer Livelihoods, Long Term Community Impact programmers, Livestock Management programmers, Water Management , Self Help Groups focusing on women.

Leveraging capability of ITC ‘s management skills, “e-choupal “reach , human and physical Infrastructure, The knowledge & experience of NGO’s .

Causeway cum Stop Dam , NalkuiEarthern Dam – Morewani ,MP

Wheat

Soybean

Soybean& Wheat

Coffee

Aqua

Wheat

Soybean

Soybean& Wheat

Coffee

Aqua

Scale Today

Kiosks: 6,200

Villages: 40,000

Farmers: 3.5 million

Future Plans

e-Choupal Now Next 5 Years

States covered 10 15

Villages covered 40,000 100,000

NO. of e-Choupals 6,500 20,000

Farmers e-empowered 4 million 10 million

For more : visit www.itcportal.com ITC e-Choupal

Presented by

Kumar Gaurav (21)

Rahul Laddha (22)

Amit Lavharale (23)

Mahesh Rathore (24)

Amit Mandal (25)

Mrityunjay Kumar (26)

Mukesh Pardashani (27)

Nandan Kumar (28) Naveen yadav (29)

THANKS

THANKSApril 8, 2023

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