It for ag


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Use of It in Agriculture. There are several examples but for example one is addressed. For another green revolution IT is must and farmers should be educated.

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It for ag

  1. 1. Leveraging IT in Indian Agriculture e-Choupal Experience Sharing R P Singh, Associate Director Extension
  2. 2. Indian AgriculturePast, Future and the Present  Creditable Accomplishments (Past !) • Able to Feed a Billion People  Even Greater Potential (Future !!) • Food Factory to the World But, the stark reality (Present !!!) • Yields are low • Quality is inconsistent • Farmers are poor • Millions can’t afford two square meals a day
  3. 3. The Potential & The Constraintsof Indian Agriculture are well known Large arable land Fragmented farm sizes Rich & Diverse Agro- Heavy dependence on climatic Zones Monsoon Strong institutional base Poor extension work at in R&D the farm level Large domestic Numerous consumption base intermediaries Attractive export Weak infrastructure & markets inconsistent quality
  4. 4. Business Models tried hitherto Have been successful more by exception than as a rule  Producers’ Cooperatives  Captive Corporate Farming  Government Corporations  Vertically Integrated Enterprises  Contract farmingAnd, unlocking the potential of Indian Agriculture still remains a dream
  5. 5. Fast globalising marketplace Underscores the need to seek new solutions with some urgency… … solutions which can actualise the potential of Indian agriculture, and also distribute the resources / benefits more equitably Information Age Solutions are very different from the Industrial Age Structures
  6. 6. The Making ofITC eChoupal
  7. 7. The Value Chain (Farm to Factory Gate) Agri Input Retailer Pakka Input Stockist Mandi A W P Cos Seed Fertilisers Chemicals Broker Practices Adat Trader Processor Farmer Kaccha Dept of Agri VLW Govt Univ. Met Dep MSP Insurance Adat Practices Weather Money Lender
  8. 8. The Insight - 1Actually, these numerous intermediaries makeup forweak infrastructure, and deliver critical value in eachleg at very low cost But their aggregate cost makes the chain uncompetitive And many times, by blocking flow of information & market signals, they are able to extract more profits for themselves than the value they are deliveringA more effective business model must be able toleverage the physical transmission capabilities ofthese intermediaries, yet disintermediate them fromthe flow of information and market signals Answer : Leverage the power of Information Technology
  9. 9. The Insight - 2 Low Risk Taking Ability Low Margin Low Investment Low Value Addition Low Productivity Weak market Orientation Answer : Leverage the power of collaborative business models
  10. 10. The Insight - 3Information Technology and Collaborative BusinessModels gave us the power to design a new model But physically reaching the nook & corner of India, and facilitating Net access to the largely illiterate farmers at low cost, and delivering effective service is still a challenge…The only historical success stories we could rely onwere cross-industry ! Wide & Deep penetration of the FMCG retail channel Rapid scale-up of Public Telephone Booths Low cost reach & effective customer servicing by Cable TV OperatorsAnswer: Unleash the power of small scaleentrepreneur
  11. 11. Ingredients of ITC eChoupal1. Leverage IT, to a. deliver real-time information and customised knowledge to improve farmers’ decision making ability to align farm output with market demands, and to improve productivity b. aggregate demand like a virtual producers’ cooperative and access high quality farm inputs at lower cost c. act as a direct marketing channel with more efficient price discovery and lower transaction costs in output marketing2. Physical Net Access and Community Interface through a lead farmer identified from within the village and appointed as Choupal Sanchalak3. Interlocking network of partnerships brings the “best-in-class” information, knowledge and inputs  ITC + Met Dept + Universities + Input Cos + Sanyojaks (erstwhile Commission Agents)
  12. 12. One Typical Transaction Choupal Transaction Introduction Price Information Moisture Testing Q&A That bundled • Knowledge (what to use) and • Information (when to use), with • Transaction (ordering an input) to deliver unique value to the farmer
  13. 13. The Web Portals also haveLocalised and customised weather information…
  14. 14. …Best Practices in FarmingFarmers across villages can interact among themselves
  15. 15. Laboratory Services are integrated too For soil testing (agriculture) and virus testing (aquaculture)
  16. 16. eChoupal addresses the farmer’s difficulties in marketing of his output as well  Farmer knows the sale price for his produce even before he leaves the village through online real-time information • who otherwise has to sink in the cost of taking the produce to Mandi before knowing the price  Transparent weighment and quality testing practices Factory Weighment Reception  And more importantly, offers the facility to delink produce delivery, cash payment and price finalisation for the benefit of small farmer Payment • who otherwise ends up selling his produce immediately after harvest at low price because of cash needs and lack of storage
  17. 17. Transaction Costs The Mandi Chain Rs per MT Trolley Freight to Mandi = 100 Filling & Weighing Labour = 70Farmer Incurs 270 Labour Khadi Karai = 50 Handling Loss = 50 V V2
  18. 18. Transaction Costs The eChoupal Chain Rs per MT Trolley Freight to Mandi = 100 Filling & Weighing Labour = 70Farmer Incurs 270 Labour Khadi Karai = 50 Handling Loss = 50
  19. 19. Bottomline For the farmer • Market aligned production, higher productivity, better farm-gate prices For ITC • Cost effective procurement of quality farm output & New Business Opportunities Above all, for the nation • Global competitiveness, without putting the small farmer at a disadvantage
  20. 20. Speed Breaker 1 : PowerWe are supplementing with Solar Power
  21. 21. Speed Breaker 2 : Connectivity We are setting up VSATs
  22. 22. Speed Breaker 3 : First Time Net Usage Significant amount of time & effort on training
  23. 23. Ensuring Equitable Distribution The Public Oath Video
  24. 24. eChoupal & Agri Extension Increase in the yield • Foundation seed programme covering more than 1500 villages Yield Protection • Best farm practices in model plots • Expert advice and village meetings • Scientist evaluation & web casting Soil testing Post Harvest advisory services
  25. 25. RURAL DISTRIBUTION Agri Inputs • Seeds • Fertilisers/Pesticides • Tractors E-governance • Land Records • Information on government subsidy schemes • Application forms for PAN,Ration Cards etc. Health • Telemedicine Education • Distant Learning – Tie up with universities like IGNOU etc. • Work with NGOs & SHGs for Girl and free education. Consumer Goods • Soya Oil • Lanterns , Salt & Sugar etc.
  26. 26. Choupal Sagar The Second layer of infrastructure, a place where farmer gets “One Stop Shop” for all his needs • Storage of Agriculture Produce • Super Market – Agri Inputs, FMCG, Agri implements, Durables, Clothing etc. • e Health facility (with Apollo Hospitals), pharmacy and laboratory • Weighment facility • Cafeteria • Soil testing Laboratory • Training Centre for farmers • Life & General Insurance • Diesel Station • Other amenities Providing world class services and products to rural India, with superior quality at the right prices.
  27. 27. Current SetupState (Crop)MP (Soy, Wheat) 1700Karnataka (Coffee) 70AP (Shrimps) 50UP (Wheat + Rice) 1500Maharashtra(Soya) 1000Rajasthan(Soya+Mustard) 700Choupals 5020Villages 26000Farmers 2.6 million Adding Six New Kiosks Every Day
  28. 28. Scale Up Road Map 15 States 100,000 Villages Wider range of crops (Grains, Oilseeds, Coffee, Spices, Cotton, Horticulture and Aquaculture) Over the next 7 years
  29. 29. ITC Limited e-ChoupalThank You