Itc echoupal initiative

Thereby it significantly reduces transaction costs. The Status of Execution Launched in June'e-Choupal', has already become the largest initiative among all Internet-based interventions in rural India.

The purpose of theeChoupal initiative was to create along-term relationship with its suppliers i. Whereas the commission agents who buy the products at alow price in Mandi from the farmers through bidding, they are able to purchase the product at low cost and sell to ITC at its original price.

As India's 'kissan' Company, ITC has taken care to involve farmers in the designing and management of the entire 'e-Choupal' initiative.

This system also gives the company traceability of its key agri-inputs for manufacturing its popular brand of consumer food products. Proper training would be needed for educating the villagers and farmers about the advantage of eChoupal service…………….

The villagers called this place as their own where they would discuss agriculture. 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.

Online access enables farmers to obtain information on mandi prices, and good farming practices, and to place orders for agricultural inputs like seeds and fertilizers.

They are generally located within walking distance or a 5-km radius. This initiative, which has covered over 64, hectares, has a multiplier impact and reaches out to around 70, farmers. The sanchalak bears some operating cost but in return earns a service fee for the e-transactions done through his e-Choupal.


Traditional and Modern method for Physical and Information flow Traditional Method for Physical and Information flow The traditional method for the information flow among the farmers was through the traditional place Choupal at which the farmers would meet for sharing ideas, news and knowledge.

This helps farmers improve the quality of their products, and helps in obtaining a better price. This initiative, which has covered over 64, hectares, has a multiplier impact and reaches out to around 70, farmers. Sanchalak pledged in front of the villagers for holding thestandards and not conducting unfair means which would benefit him.

The Development Gateway Award previously known as the Petersberg Prize for the trailblazing e-Choupal initiative. The Stockholm Challenge 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.

Effects of e-Choupal[ edit ] ITC Limited has provided computers and Internet access in rural areas across several agricultural regions of the country, where the farmers can directly negotiate the sale of their produce with ITC Limited. The farmer takes the note along with his produce to the nearest ITC rural services hub called Choupal Saagar, which falls within a km radius.

On the anvil are plans to channelise other services related to micro-credit, health and education through the same 'e-Choupal' infrastructure.

ITC eChoupal Initiative Harvard Case Solution & Analysis

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.

Yet the farmers are free to sell to anybody and are not tied down to ITC with any written contracts. The evolved model will cater to the new generation of agri- entrepreneurs and agrarian start-ups dealing with a wide array of services from hyper-local weather forecasts to support systems for precision agriculture; from sensors for smart irrigation to drones for crop-health monitoring; from image processing for disease recognition to predictive analytics for epidemic management; from next-gen farm management to online consumer outreach directly.

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.

This initiative has enabled farmers to make better choices and offered insights on better farm practices. The farmers do not pay for the information and knowledge they get from e-Choupals; the principle is to inform, empower and compete.

Principles of Effective Supply Chain ITC with its eChoupal Initiative has managed to improve the supply chain by eliminating cost inflation, protecting farmers from unfair prices and providing the correct price information and the market demand. Through e-Choupal, farmers do get necessary information about better farming practices and connections to markets for better prices, thus liberating farmers from exploitative middlemen.

It was difficult to educate the people on how to use the new eChoupal initiative which would help the farmers improve their profit generation and gain knowledge on the market.

There is a strategic element to this initiative. This is just a sample partial case solution.

What Connects a Corporate Giant, Farmers and We the Consumer? Meet ITC e-Choupal

To the uninitiated, an ITC e-Choupal is an internet kiosk in the home of a fellow villager. This award is for using information technology for the economic development of rural communities. Or have something to share.

Another path-breaking initiative - the 'Choupal Pradarshan Khet', brings the benefits of agricultural best practices to small and marginal farmers. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector.

Today, Singh attends sessions at the Choupal Pradarshan Khet, which offers further training on the latest farming techniques. The active participation of farmers in this rural initiative has created a sense of ownership in the project among the farmers.

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.

Thereby it significantly reduces transaction costs. However, the farmers were notable to gain the accurate knowledge regarding the weather, market prices of the agricultural commodities and the market demand for the product through the traditional method of informational flow.

The traditional method for the physical flow of the agricultural products was that once the crops had been harvested, the products would be shifted to the Mandi for bidding.

Effects of e-Choupal ITC Limited has provided computers and Internet access in rural areas across several agricultural regions of the country, where the farmers can directly negotiate the sale of their produce with ITC Limited.

ITC e-Choupal: Corporate Social Responsibility in Rural India ITC implemented the e-Choupal initiative in By establishing a direct channel between the farmer and ITC, e-Choupal. 1 E-CHOUPAL: ITC’S RURAL NETWORKING PROJECT* I. Abstract In Hindi (an Indian language spoken in most parts of Northern and Central India), a choupal is a village gathering e-choupal initiative—whereby a choupal is equipped with a computer and.

Supply chain of Soya bean after e-Choupal Initiative Pricing Previous day’s closing price used as benchmark price for next day Mandi prices communicated to sanchalak through e-Choupal portal Sanchalak inspects the sample, assesses quality and gives farmer a conditional quote and a note (name/village/quality tests/approx.

quantity/conditional 5/5(1). 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 initiative—whereby a choupal is equipped with a computer and Internet connectivity—is the brainchild of a large agricultural processing company in India, the Indian Tobacco Company (ITC).

Itc echoupal initiative
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Case The ITC eChoupal Initiative |