PRESENTED BY: -

SECTION G, MBA CLASS OF 2011

AMITY BUSINESS SCHOOL

SCENARIO OF INDIAN AGRICULTURE

Agriculture is the mainstay of the majority of the

villagers & provides employment to about 66% of

workforce in India

Agriculture produces 23% of India’s GDP services.

Despite green revolution Indian agriculture sector has

not been able to achieve the world level productivity.

Close to 33% of arable land is held in units of less than

2 hectares per owner

Extensive dependence on Monsoon

The State of Indian Farmer Small Landholdings

Low literacy , Low Income

Weak Infrastructure : Physical , Social

Underserved on supply side

Over dependence on intermediaries

Low productivity – Low share of consumer spend

They do not have bargaining power

They do not have access to real time information

They cannot get customized knowledge advise

FARMER MANDI BUYER

Information and Prices

Payments, Labor, Transportation and Storage

0.5%

e-CHOUPAL

Sanchalak

Information

Information to Farmer

Input

Output

Sell Output

Kiosks

WORKING MODEL

THE CONCEPT

Choupal is a Hindi word which means “village meeting place”. Market is a meeting place where vendors and customers come together to do transactions.

E-Choupal is a virtual market place where farmers can transact directly with a processor and can realize better price for their produce.

E-choupal, the unique web based initiative of ITC’s Agri Business Division, offers the Farmers of

India all the information , products and services they need to enhance

farm productivity, improve farm-gate price realization and cut

transactions costs.

E-Choupal, a new business model

INFORMATION AVAILABLE (e-CHOUPAL

Sanchalak

Farmers

Interface

VSAT

Includes ITC server, database and connections to partner sites.

TECHNICAL AND APPLICATION ARCHITECTURE

Allows ITC to communicate with a million farmers

Enables real time information access

Price discovery

Captures farm-level intelligence

Improves productivity through agricultural education

Orchestrates network that makes e-Choupal possible

IT enabled network of partnerships:

Agricultural research centers, input providers, banks,

agents, and farmers

• Market Adding Six New Choupals every day•Intend Scaling up to 100,000 in 15 states by 2010

E- Choupal Now Next 5 Years

States Covered 10 15

Villages Covered 40000

100000

No. of e-Choupals 6500

20000

Farmers e-empowered

4 Mn.

10 Mn.

CURRENT NETWORK SIZE

Farmers’ Gains Access to information

Empowered decisions

Improved agriculture

Economic benefits through

lower transaction costs and

process efficiencies

Served with dignity

Knowledge bundled sale of

goods and services

Hope for a brighter future

50

50

70

100

00000

50

100

150

200

250

300

Cost

s (Rs

./ Me

tric T

on)

Mandi e-Choupal

Handling and Transit Losses Labor Costs

Bagging and Weighing Transportation

ITC’s Gains Lower procurement costs

Direct interaction with

farmers - Control on

quality & supply security

Low cost distribution

channel

Access to market

intelligence

1070

75

250

0850

100

0

100

200

300

400

500

600

Cos

ts (R

s./ M

etri

c To

n)

Mandi e-Choupal

Commission Handling and Transit Losses

Labor Costs Bagging and Weighing

Transportation

•Better Returns•Education•Social Security

•Lower Cost of Inputs•Better Relations•Supply Security•Improvement in

Productivity•Reduction in Disparity•Reduction in Hoarding & Blackmarketing

•Lower cost of products•Social Stability•Check Migration to Cities

SOCIAL IMPACT OF e-CHOUPAL

CONCLUSION

THANK YOU