Description
This is a presentation about the ITC e-choupal.
ITC e-Choupal
BACKGROUND
Agriculture produces 23% of India’s GDP ? Provides employment to about 66% of workforce in India ? Extensive dependence on Monsoon ? Illiteracy and black-marketing prominent
?
FARMER ? MANDI ? BUYER
Inbound Logistics
Display & Inspection
Auction
Bagging & Weighing
Payment
Outbound Logistics
PROBLEMS OF RURAL INDIAN FARMER
CONTD…
Lack of Information ? Local Mandis dominated by Commission Agents ? Commission Agents major link between Farmer and Buyers. ? Spoilage, Wastage further hamper Net Productivity
?
FARMER ? MANDI ? BUYER
Inspection by Sight or Moisture meter ? Crops affected by Wastage and Spillage ? Malpractices by Agents ? Multiple points of handling ? Untimely Payments ? Mixing of Premium quality produce with inferior to inflate prices ? No Direct interaction with farmers ? High dependence on Commission Agents(Adatiya’s) ? Commission 2.5% to 3%
?
Role Of e-Choupal
e-CHOUPAL
Farmer
Information and Prices
Sanchalak E-Choupal (Computer) Samyojak Product and Service Providers
Payments, Labor, Transportation and Storage
0.5%
WORKING MODEL
Kiosks Information Sanchalak
Information to Farmer Input Sell Output Output
e-CHOUPAL PLATFORM
FARMER ? e-CHOUPAL ? BUYER
Pricing
Inbound Logistics
Inspection and Grading
Weighing & Payments
Hub Logistics
TRANSACTION COSTS
CONTD…
INFORMATION AVAILABLE (e-CHOUPAL)
Weather
Pricing
World Market Price
Education
News
Best Practices
Others
Q&A
TRAINING THROUGH ICT
CURRENT NETWORK SIZE
• Market Adding Six New Choupals every day •Intend Scaling up to 100,000 in 15 states by 2010
E- Choupal
Now
Next 5 Years 15
States Covered Villages Covered No. of e-Choupals Farmers e-empowered
10
40000 100000 6500 4 Mn. 20000 10 Mn.
BENEFITS OF e-CHOUPAL
On time Information ? Payment on Delivery ? Transportation Costs are reimbursed ? No Malpractices ? Reduction in transportation cycle ? Reduction in wastage and spillage ? Lower Cost of Inputs for Farmer as well as ITC ? Supply Security ? Save of US$6(Rs 270) per metric tonne
?
CHALLENGES FACED BY e-CHOUPAL
Power Constraints
Transportation
Telecom Infrastructure
Illiteracy
Social Norms
System Support
Others
Q&A
SOCIAL IMPACT OF e-CHOUPAL
•Better Returns •Education •Social Security
Farmers
•Lower cost of products •Social Stability •Check Migration to Cities
ECHOUPAL
Society
ITC
•Improvement in Productivity •Reduction in Disparity •Reduction in Hoarding & Blackmarketing
•Lower Cost of Inputs •Better Relations •Supply Security
Government
Thank You
doc_693785134.pptx
This is a presentation about the ITC e-choupal.
ITC e-Choupal
BACKGROUND
Agriculture produces 23% of India’s GDP ? Provides employment to about 66% of workforce in India ? Extensive dependence on Monsoon ? Illiteracy and black-marketing prominent
?
FARMER ? MANDI ? BUYER
Inbound Logistics
Display & Inspection
Auction
Bagging & Weighing
Payment
Outbound Logistics
PROBLEMS OF RURAL INDIAN FARMER
CONTD…
Lack of Information ? Local Mandis dominated by Commission Agents ? Commission Agents major link between Farmer and Buyers. ? Spoilage, Wastage further hamper Net Productivity
?
FARMER ? MANDI ? BUYER
Inspection by Sight or Moisture meter ? Crops affected by Wastage and Spillage ? Malpractices by Agents ? Multiple points of handling ? Untimely Payments ? Mixing of Premium quality produce with inferior to inflate prices ? No Direct interaction with farmers ? High dependence on Commission Agents(Adatiya’s) ? Commission 2.5% to 3%
?
Role Of e-Choupal
e-CHOUPAL
Farmer
Information and Prices
Sanchalak E-Choupal (Computer) Samyojak Product and Service Providers
Payments, Labor, Transportation and Storage
0.5%
WORKING MODEL
Kiosks Information Sanchalak
Information to Farmer Input Sell Output Output
e-CHOUPAL PLATFORM
FARMER ? e-CHOUPAL ? BUYER
Pricing
Inbound Logistics
Inspection and Grading
Weighing & Payments
Hub Logistics
TRANSACTION COSTS
CONTD…
INFORMATION AVAILABLE (e-CHOUPAL)
Weather
Pricing
World Market Price
Education
News
Best Practices
Others
Q&A
TRAINING THROUGH ICT
CURRENT NETWORK SIZE
• Market Adding Six New Choupals every day •Intend Scaling up to 100,000 in 15 states by 2010
E- Choupal
Now
Next 5 Years 15
States Covered Villages Covered No. of e-Choupals Farmers e-empowered
10
40000 100000 6500 4 Mn. 20000 10 Mn.
BENEFITS OF e-CHOUPAL
On time Information ? Payment on Delivery ? Transportation Costs are reimbursed ? No Malpractices ? Reduction in transportation cycle ? Reduction in wastage and spillage ? Lower Cost of Inputs for Farmer as well as ITC ? Supply Security ? Save of US$6(Rs 270) per metric tonne
?
CHALLENGES FACED BY e-CHOUPAL
Power Constraints
Transportation
Telecom Infrastructure
Illiteracy
Social Norms
System Support
Others
Q&A
SOCIAL IMPACT OF e-CHOUPAL
•Better Returns •Education •Social Security
Farmers
•Lower cost of products •Social Stability •Check Migration to Cities
ECHOUPAL
Society
ITC
•Improvement in Productivity •Reduction in Disparity •Reduction in Hoarding & Blackmarketing
•Lower Cost of Inputs •Better Relations •Supply Security
Government
Thank You
doc_693785134.pptx