eChoupal s Presentation

8/8/2019 eChoupal s Presentation

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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.MPG


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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

eChoupal s Presentation

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