Posted: February 17th, 2022

Problems in E Choupal Itc

ITC e-Choupal Weak point of e-choupal Though e-choupal helps remove the intermediary and due to this fact permits farmers to get a greater value for what they develop, it does nothing to unravel the extra elementary downside of the inherent inefficiencies created by so many tiny farms. As well as, it depends on infrastructure, which is commonly missing in rural communities. Electrical energy and telecommunication companies can typically be lower than 100 % dependable in a few of the locations the place echoupal has been carried out.Lastly, though there is no such thing as a longer a intermediary, e-choupal might be no simpler than the sanchalak (coordinator) in every neighborhood.
ITC in conjunction with native farmers created the e-choupal system that’s performing as a catalyst in rural transformation by offering entry to newest data of the agro sector, growing native management and making a worthwhile distribution. It helps in assuaging rural isolation, improves productiveness and revenue, create transparency for farmers – which improves the financial situation of rural areas.This paper tries to establish the issue of mandi, want of e-choupal and challenges in growth of e-choupal and derives with varied conclusion and strategies in ‘future technique’ from preliminary discovering and discusses course for additional investigation. Agriculture is the spine of Indian economic system producing 23 % of GDP, and employs 66 % of workforce. Due to the inexperienced revolution, India’s agricultural productiveness has improves to the purpose that it’s each self-sufficient and a web exporter of quite a lot of meals grains, but most Indian farmers have remained poor.The causes embrace remnants of scarcity-era regulation and an agricultural system primarily based on small, inefficient land holdings. The opposite constraints are weak infrastructure, quite a few intermediaries, extreme dependence on the monsoon variation between completely different agro-climate zones, and lots of others.
The unlucky result’s inconsistent high quality and uncompetitive costs, making it troublesome for the farmers to promote his produce in the world market.ITC’s trailblazing reply to those downside is the – e-choupal initiative; the only largest data technology-based intervention by a company entity in rural India that’s reworking the Indian farmer into progressive knowledge-seeking netizens. Enriching the information of farmers & elevating them to a brand new order of empowerment. ITC goals to confer the ability of knowledgeable information on even the smallest particular person farmer enhancing its competitiveness in the worldwide market. The normal mannequin Indian farmers depend on Division of Agriculture, govt. niversities, insurance coverage corporations and so forth. for varied inputs resembling climate, fashionable and scientific farming practices and insurance coverage cowl.

Farmers method enter retailers who supply them from wholesalers who’re in direct contact with producers. After harvest, farmers deliver these produce to mandis; in small a number of tons all year long, the place beans are auctioned to the merchants and brokers of the processing corporations in an open outcry methodology. The federal government facilitate honest value discovery and allow aggregation of products, regulate these market yards.Profitable bidders then mattress the beans, weigh them, pay half money to the farmers, and transport the cargo to the processing models. However with each middleman the price of produce will increase to the processor as middleman provides his revenue margin to the associated fee though the farmers get the bottom value and margin in the entire chain. e-choupal e-choupal is a Hindi phrase which implies – “Village assembly place”. e-choupal is a digital market place the place farmers can transact instantly with a processor and may understand higher value for his or her produce.
-choupal makes use of the; bodily transmission capabilities of present intermediaries & aggregation, logistics, counterparty danger and bridge financing.In June 2000, ITC Restricted launched e-choupal in India and now e-choupal has develop into the biggest Web primarily based intervention in rural India. e-choupal goals to supply farmers prepared entry to crop particular real-time data to enhance the farmer’s choice making means thereby serving to them to higher align their farm output to the projected demand in Indian market. -choupal, the Webbased initiative of ITC’s IBD, provides the farmer all details about services they should improve farm productiveness enhance farm-gate value realization and minimize transaction prices. Farmers can entry the most recent native and world data on climate, scientific farming practices and market costs on the village itself via the online portal in Indian languages – Hindi, Marathi, Kannada and Telegu. echoupal additionally facilitates the availability of top of the range farm inputs in addition to purchases of produce on the farmer’s doorstep. -choupal and the normal mannequin The principle attraction of e-choupal is that it connects massive and small producer and customers and eliminates the necessity of middlemen (who’re important in conventional market).
e-choupal is a digital market that brings collectively distributors and clients. Geographical distance not restricts participation of farmers.The principle hurdle of conventional market is that data asymmetry is inherent in the market the place as e-choupal offers for clear transaction. The transaction time on the ITC hub is lower than on the mandi i. e. or three hours the place as 1-2 days in mandi. Some extra factors are:• • • • • • Buyer centric and never depending on intermediaries.
Able to getting used for a lot of commodities & a number of transactions. Simply scalable as soon as it’s verified. Makes use of native expertise and native individuals to develop native leaders. Makes use of all the present establishments and authorized frameworks. Scientific manner of inspection, testing and weighing. The e-choupal enterprise mannequin The mannequin is centred on a community of e-choupal, data centres outfitted with laptop linked to the Web, finding in rural farming villages. -choupal serves as choupal (gathering place) and an e-commerce hub.
An area farmer performing as a Sanchalak (coordinator) runs the e-choupal and the pc normally is positioned in the sanchalak’s dwelling. ITC additionally included an area fee agent referred to as the Samyojak (collaborator), into the system because the supplier of logistical help. The essential component of the e-choupal system and the important thing to managing the geographical and cultural breath of ITC’s community by recruiting an area farmer is the sanchalak. Sanchalak create belief in society and all infrastructure arrange is made in his home.Sanchalak receives fee for each transaction processed via the e-choupal and likewise benefited from elevated social standing that accompanies the place – a big benefit in rural Indian life. Sanchalak act as public officer in ITC mission. Sanchalak additionally aggregates farmers enter in addition to buy orders.
Sanchalak undergoes coaching of fundamental laptop utilization, fundamental enterprise abilities, high quality inspection of crop product coaching and so forth. The samyojak or cooperating commisssion brokers additionally play vital position.He earn revenue by offering logistical companies that substitute for the dearth of rural infrastructure by offering data and market indicators on buying and selling transaction. Samyojak is concerned in ongoing operation of echoupal system, permitting them income streams via offering companies resembling administration of money, bagging & labour at procurement hubs, dealing with of mandi paperwork as licensed principals for the retail transaction of the e-choupal. ITC has plans to saturate the sector in which it really works with e-choupals, such farmer has to journey not more than 5kms.The corporate expects every e-choupal to serve about 10 villages. Standard transaction vs.
e-choupal Price Trolley Freight Filling & Weighing Labour Khadi Karai Dealing with loss Sub complete Processor Incurs – Fee Agent Price of Bag Labour (Stitching & loading) Labour at manufacturing unit (Unloading) Freight to manufacturing unit Transit Losses Sub Complete Grand Complete Standard Market 100 70 50 50 270 100 75 35 35 250 10 505 775 e-choupal NIL NIL NIL NIL NIL 50 NIL NIL 35 100 NIL 185 185 As % of produce worth Eight % 2 percentThe e-choupal system Yesterday’s mandi closing value is used to find out the benchmark Honest Common High quality (FAQ) value on the e-choupal, which is static for a given day. The knowledge of mandi value is communicated via e-choupal portal. If and when connection fails, sanchalak calls an ITC subject consultant. To provoke a sale the farmer brings a pattern of his produce to the e-choupal. The sanchalak performs the standard take a look at in the farmer’s presence & should justify any deduction to the farmer. These easy checks and balances guarantee transparency in a course of the place high quality testing and pricing occurs at a number of ranges.If the farmer chooses to promote his produce to ITC, the sanchalak provides him a be aware capturing his title, his village, high quality take a look at report, approx.
amount and conditional value. The farmer takes the be aware from sanchalak and proceeds along with his crop to the closest ITC procurement hub. Some procurement hubs are merely ITC’s factories that additionally act as assortment factors. ITC’s purpose is to have a processing centre with a 30 to 40 kms radius of every farmer. On the ITC hub, a pattern of the farmer’s produce is taken and put aside for laboratory take a look at.Laboratory testing of the pattern for oil content material is carried out after the sale & doesn’t alter the value. The rationale for that is that farmers having traditionally being exploited aren’t instantly keen to belief a laboratory take a look at.
After such inspection, the farmer’s cart is weighed on an digital weighbridge, first with the produce after which with out produce. The distinction is used to find out the weights of his produce. After weighing, the farmer collects his cost in full on the cost counter. The farmer can be reimbursed for transporting his crop to the procurement hub.Each stage of the method is accompanied by applicable documentation. The farmer is given copy of lab reviews, agreed charges and receipts for his report. Sanyojaks, who’re adept at dealing with massive amount of money, are entrusted with the accountability of cost besides at procurement centres.
Samyojaks additionally deal with a lot of the hub logistics, together with labour administration at hub, bagging, storage mgmt. , transportation from hub to elements and dealing with mandi paperwork for the crops procured on the hub and for all this he’s paid a zero. 5 % fee.Advantages of e-choupal “A quiet digital revolution is reshaping the lives of farmers in distant Indian villages. ” e-choupal delivers real-time data and customised information to farmer’s choice making means, securing higher high quality & value. The e-choupal initiative additionally creates a direct advertising channel, eliminating wasteful intermediation and a number of dealing with, thus decreasing transaction price and making logistics environment friendly. • Digital transformation – ITC started e-choupal with Soya grower in the villages of M.
P. e-choupal tried to alter the stereotype picture of farmers of bullock cart.Farmers now go online to the positioning via web kiosks to order top quality enter, get data on finest farming practices, prevailing market costs for his or her crops at dwelling and overseas for the climate forecast all in the native language. The e-choupal website can be serving to the farmers uncover • • the perfect value of their high quality on the village itself. The location additionally offers farmers with specialised information for customizing their produce to the appropriate client segments. The brand new storage and dealing with system preserves the identification of various varieties proper via the ‘farm gate to dinner plate’ provide chain.Thus, encouraging the farmers to boost their high quality requirements and entice greater value.
Credit score and Insurance coverage – Farmers’ low revenue and issue in accessing credit score limits the capability to pursue alternatives inside and outdoors the agriculture sector. ITC e-choupal proposes the answer of this downside by making partnership with monetary establishments. e-choupal present varied forms of loans like non-cash loans for farm inputs, loans to sanchalak (sanchalak can higher handle credit score danger & have higher entry to farmers), direct loans to farmers primarily based on sanchalak suggestion, Insurance coverage & danger administration companies and so forth.Native management growth – ITC makes use of involvement of farmers in content material creation helps to simply customise the data as per the native necessities. Participation of native farmers ensures provision of enough and decipherable data to e-choupal, which might be employed into the farming, or pricing of the produce. The elevated participation in e-choupal develops native management high quality in farmers. The farmers get attracted in the direction of e-choupal as a result of elevated earnings, added companies that he might get, saving in time and the flexibility to make use of e-choupal for a lot of transactions.
choupal delivers related applied sciences in the palms of the farmers, which may enhance the financial situation of the whole village. e-choupal is among the only a few ICT initiatives in India that has successfully utilized e-commerce transactions for poverty alleviation. ICT additionally lowered the variety of middlemen between producers and shoppers. Now, easy expertise options can be found to create networks in rural areas, which may operate as digital marketplaces. e-choupal at a look States lined 9 States [M. P. , Haryana, Uttaranchal, Karnataka, A.
P. , U. P. Maharashtra, Rajasthan and Kerala] 36,000 6,400 three. 5 million Village lined e-choupal data kiosks Empowered e-farmers Different advantages to farmers Farmers are reimbursed for transport to the procurement hub of e-choupal. The transaction time on the ITC hub can be a lot quicker than mandi. ITC has given recognition to integral accomplice in the availability course of & not mere as agricultural producer and thus elevating the extent of respect of farmers.
Equally offering shaded seating space whereas ready for his or her paperwork exhibits ITC actually take care of farmers. References Price and income Stream e-choupal has been profitable.It has lowered the price of procurement and the price of transit and the fabric dealing with price. Procurement transaction prices are lowered from the business commonplace of Eight % (farmers incurs three % and the processor incurs 5 %) to 2 % (with farmer saving all his three %, and the processor ITC – saving three %). • • www. echoupal. com Case research on ‘ITC’s e-choupal & worthwhile rural transformation’ by Kuttayan, Annamalai ; Rao.
Case research on ‘Growing a rural e-hub’ by Bowonder, Gupta ; Singh. • The full price incurred on the initiatives thus far has been • Papers in Digital Alternatives.Rs. 50 million (Rs. 35 million as capital price in the direction of computer systems and different on the kiosks in addition to central servers and Rs. 15 million income expenditure incurred in the direction of portal growth, individuals overhead and so forth. ).
However ITC has acquire profit Rs. 20 million, which is the equal of full funding on 40 % of the Choupals (Kiosks). By way of future income, the outflow is 52. 1 million in 2001-02 which reduces to three. 90 million in 2005-2006 and for 2006-07 is estimated as 2. 70 million. The place as influx in 200102 is 15.
three million the place as 65. zero million in 2005-2006 and estimated as 85. million in 2006-2007. The interior price of return (IRR) on the mission works out to be 21. 55 %. Within the mandi system, there was a mark up of 7-Eight % on the value of soybean from the farm gate to the manufacturing unit gate of this mark-up 2. 5 % was born by the farmer whereas 5 % was borne by ITC with e-choupal, ITC price are right down to 2.
5 %. In absolute phrases, each the farmers and ITC save about $ 6 per metric ton. Challenges As the ability is normally out there for just a few hours a day at on a sporadic schedule, the e-choupal laptop can not all the time be accessed when data is required.Part imbalances results in harm of equipments. Telecommunication infrastructure in villages is poor. Phone trade even have restricted battery backup. As well as, there is no such thing as a native help workers to take care of or troubleshoot phone exchanges.
The help workforce can be short-staffed. Different challenges are: • • • • • • • Illiteracy about laptop in rural areas in addition to rural inhabitants has low belief on digital system. Choice of an informed, clever, dependable and matured individual as a sanchalak. Improper information about rural market.Vicious circle of intermediaries (Adatiya ; Brokers). Improper and sophisticated consumer interface on e-choupal. Lack of guidelines and regulation associated to digital choupal.
Distrust about inspection, testing and weighing of produce on centres. ITC’s instance present the important thing position of IT in offering and sustaining by a company, however utilized by native farmers – to deliver transparency, to extend entry to data, and to catalyze rural transformation, whereas enabling efficiencies and low price distribution that make the system worthwhile and sustainable .Essential elements in the obvious success of the enterprise are ITC’s in depth information of agriculture, the hassle ITC has made to retain many facets to the present manufacturing system, together with retaining the integral significance of native companions. ITC e-choupal is dedicated to transparency and respect and equity in the direction of farmers in addition to native companions. The creator is at present working as Helpant Professor in an MBA faculty in Pune (NIFEM). She is an M. Phil – College topper from DAVV, Indore, MP and is at present pursuing her PhD on e-Governance underneath the steerage of Prof.
(Dr. ) Pankaj Trivedi.The ITC e-choupal has attracted world consideration. Says David Upton, professor, Harvard Enterprise Faculty, who flew right down to India to write down this case research for his college students, “It is a provide chain innovation that’s native to India however has broad purposes to the world. What’s attention-grabbing is the social good it brings in the wake to the small, marginal farmer. ” Upton factors out a number of points which the corporate has addressed. Firstly, it isn’t simply tweaking round however a higher effectivity in the availability chain.
One of many issues in redesigning provide chains is the right way to use completely different instruments, thus making the varied gamers nonetheless personal the chain.Right here, the farmer and the workforce are concerned in portray the large image, so there’s enthusiasm and a sense of possession. Additional, how do you keep away from a channel battle by discovering house for the middle-men? Upton additionally factors out that the ‘roll out, repair it, scale up’ mannequin is a brand new method to strategic administration. The philosophy right here is that the terrain has so many uncertainties that gaps will exist. So, not like in the previous, the place focus was on well-laid strategic plans, right here you give experimentation-based methods extra weightage.Says Upton: “Admitted I don’t have all of the solutions however I cannot watch for them; as an alternative construct security nets whereas I roll it out, study classes after which repair it. This implies you aren’t connected to your design and are delicate to classes from the surface world.
” The corporate’s goal is to finally have 50,000 choupals to cowl 200,000 Indian villages which implies overlaying one-fifth of the nation. With this infrastructure, ITC targets Rs 2000 crore (Rs 20,000 million) by the yr 2005 from its worldwide exports.Says Sivakumar, “Even whereas we arrange choupals throughout India, now we have provides from worldwide organisations to copy this in Africa and different growing nations. ” The eChoupal benefit ITC’s eChoupal mission is a winner—for farmers who get higher remuneration and for the corporate that is assured high quality inputs for its enterprise Think about an illiterate farmer in a distant village in Madhya Pradesh sitting at a desktop wired as much as the WWW via a small VSAT hyperlink, powered by a tiny energy generator by the aspect, and browsing away to glory downloading invaluable details about climate forecasts and sowing tendencies.Think about farmers checking costs for soya beans on the nearest government-run market, and even on a world commodities trade. “A number of V V R Babu years in the past such a situation would have appeared outlandish however immediately it’s a actuality,” says V V R Babu, CIO, ITC (eChoupal Challenge). IT for the Lots The eChoupal mission covers over 35,000 villages in Madhya Pradesh, Uttar Pradesh, Maharashtra, Karnataka, Andhra Pradesh, Rajasthan, Haryana and Uttaranchal offering tens of millions of farmers with essential data on farming.
The Choupal companies are being delivered by over 6,000 Sanchalaks and over 17,000 Upa Sanchalaks to those remotest areas.A number of Advantages Farmers can have a look at climate forecasts, order fertiliser and herbicide, and seek the advice of an agronomist by e-mail when their crops flip yellow. At some eChoupals they’ll even purchase life insurance coverage, apply for loans and likewise examine their kids’s examination outcomes. Whereas a lot has been written concerning the social advantages of ITC’s eChoupal, the matter of the actual fact is that the mission was conceptualised with a pure enterprise focus to create farmer communities in villages to facilitate sourcing of high-quality farm produce for the corporate’s quick rising agribusiness.Higher Cost In IT parlance, eChoupal is an clever mix of purposes like CRM and provide chain administration. As an illustration, by serving to the farmer establish and management his inputs and farming practices, and by paying extra for higher high quality, ITC has been in a position to protect the supply and enhance the standard of produce. The mission was constructed utilizing .
NET. The primary implementation of a Soya Choupal took eight months however later extensions just like the Aqua Choupal for aquamarine farmers took between six and eight weeks.Right now eChoupal is a versatile, straightforward to deploy resolution. ITC Infotech offered an inhouse workforce of 25 to 30 individuals in the preliminary stage and this step by step got here right down to round 20 individuals, and at last a five-member workforce to take care of the mission. The portfolio of commodities sourced has been vastly expanded to incorporate maize, barley, sorghum, and pulses, and the sourcing cycle is prolonged virtually across the yr. Within the commodities market, these two elements are serving to ITC create a particular aggressive benefit.The Problems “Initially we thought that we might work with DoT to improve rural phone exchanges.
The division was proactive in upgrading many rural exchanges to digital ones. After 15 months we discovered that the expertise was not passable,” defined Babu. Energy cuts in rural areas can run for eight to 10 hours. ITC even went as far as to supply gensets at a number of places hoping to spur DoT to doing the identical. It didn’t work out and in 2001 ITC shifted its focus to utilizing Ku Band VSATs. Energy remained an issue and it was solved by utilizing photo voltaic panels.The EChoupal Roadmap ITC now plans to leverage its eChoupal infrastructure to promote third-party merchandise, present rural market analysis companies, and in the social sector, to supply companies like well being advisories and allow e-governance.
ITC eChoupal has embarked in on offering better of the category retailing and purchasing experiences to the agricultural shoppers by constructing retail purchasing complexes that present built-in amenities underneath one roof. Underneath the model ‘Choupal Sagar,’ these purchasing complexes home—a procurement centre, retail retailer, meals court docket, farmer facility centre and healthcare clinic.In healthcare companies, a pilot mission has been launched together with main company healthcare service suppliers, to increase dependable and high quality healthcare companies to the remotest villages. A number of well being camps performed through the pilots are encouraging and the mission is in the midst of scaling as much as different places. ITC eChoupal is at present piloting supply of high quality training companies to the agricultural areas leveraging the bodily and digital infrastructure developed for commodities sourcing and client retail companies.

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