I T C
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The document discusses ITC's e-Chaupal initiative, which is a virtual marketplace that allows farmers to directly transact with processors via the internet. E-Chaupal addresses disadvantages of the conventional business model like multiple intermediaries and information asymmetry by providing farmers price information, access to experts, and ability to compare local and global market prices. The initiative has grown from serving 4 million farmers through 6,500 e-Chaupals across 10 states to plans to empower 10 million farmers through 20,000 e-Chaupals across 15 states in the next 5 years.
I T C
- 2. I.T.C Indian tobacco company Presence in tobacco, hotels , paper boards ,foods , fashion retailing and commodity export Annual sale of 2 billon
- 3. International business division Started in 1990 Div of ITC engaged in exports of range of agricultural commodities Contributes over 60% of foreign exchange earning
- 4. E-chaupal
- 5. E-CHAUPAL Chaupal is a hindi word which means a village meeting place, and E here stands for electronic so it is a village meeting place on a electronic platform It is a virtual market place where vendors and customers come together to do transactions
- 6. E-CHAUPAL It is a virtual market place where farmers can transact directly with a processor and can realize better price for their products ITC used a SYMBIOTIC-MICRONODAL model. As both the parties were making profits at different levels
- 7. Types of E-Chaupals Shrimp Coffee Wheat Soyabean Large farmers Large produce Small farmers
- 8. Focused approach Feed ingredients (soybeans, rapeseed meal) Food grains (rice, wheat, pulses) Edible nuts (sesame seeds, groundnuts) Marine products (shrimps ,prawns)
- 10. Disadvantages of the conventional business model Too many intermediaries Information asymmetry caused by intermediaries as they block flow of information to farmers
- 11. E-Chaupal modal
- 12. Advantages No hierarchy of brokers Internet is used as a low cost medium of communication providing latest information Intermediaries are still used for physical delivery of produce maintaining low cost
- 13. E-choupals are set up by ITC with solar power back up and VSAT connectivity. The equipment cost for the E-choupal is borne by ITC. Allow farmers to compare global and local market price (mandi) Advantages
- 14. Advantages Actual procurement is done at factories and warehouse hubs. The initial logging is done through the e-choupal, which provides price information and therefore price certainty To farmers they give access to operational information developed by ITC experts, pertaining to cropping, seeds, fertilizers and so on.
- 16. Future plans 10 million 4 million Farmers e-empowered 20,000 6,500 No . of e-Choupals 100,000 40,000 Villages covered 15 10 States covered Next 5 Years Now e-Choupal
- 17. Thank you