If you have knowledge, let others light their candles in it.

1. ITC'se-choupalinitiative
LIVIN GRAHAM SJ
ITM B-School,chennai.

2. ReasontoInitiate e-Choupal
“Improve the Quality of Life in Rural India.”

3. e-Choupal
Introduction
 Launched in June 2000.
 'e-Choupal', is one of the largest initiative among all Internet-based interventions in rural India.
 Its services reached out to over 4 million farmers
 It is operated around 35000 villages through 6100 kiosks across 10 states (Madhya Pradesh, Haryana,
Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Kerala, Maharashtra, Andhra Pradesh and Tamil Nadu).
 General products-Processed Fruits (Mango, Guava, Papaya etc.) Food Grains (Rice, Wheat and Pulses) Feed
Ingredients (Soya bean ) Edible Nut (Groundnut) Coffee & Spices Marine Products (Shrimps and Prawns )

4.  Village internet kiosks - which will provide enables
farmers to obtain information on mandi prices, and good
farming practices, and to place orders for agricultural
inputs like seeds and fertilizers for farmers.
 ITC Limited kiosk with Internet access is run by a
sanchalak — a trained farmer.
 The warehouse hub is managed by the same traditional
middle-men, now called samyojaks
Whatise-Choupal
Working Model

5. Sanchalak
 ITC Limited kiosk with Internet access is run by a sanchalak — a
trained farmer. The computer is housed in the sanchalak's house and is
linked to the Internet via phone lines or by a VSAT connection. Each
installation serves an average of 600 farmers in the surrounding ten
villages within about a 5 km radius. The sanchalak bears some
operating cost but in return earns a service fee for the e-transactions done
through his e-Choupal.

6. Samyojaks
 The warehouse hub is managed by the same traditional middle-men,
now called samyojaks, but with no exploitative power due to the
reorganisation. These middlemen make up for the lack of
infrastructure
and fulfill critical jobs like cash disbursement, quantity aggregation
and transportation.

7. Comparison ofmandiBefore&aftere-choupal
After e-choupalBefore e-choupal

8. ThePrivilegedAssets ofeChoupal
ITC Infrastructure:
– Computer
– Internet
• Broadband
Physical Reach:
– Choupals within walking distance
– Multipurpose WH hubs within driving distance
Key Intermediaries:
– Sanchalak (1 per cluster of 5-6 villages) 1500/state
– Sanyojak (1 per group of 10-15 choupals) 100/state
– ITC (support the farm produce marketing end)

9. Strategies &KeyIntervention

10. Benefits
 The e-Choupal model is positioned as an alternative to traditional modes of procurement where farmers travel to
the government market (or mandi) to sell their produce.
 With appropriate knowledge and services available virtually at the farm gate, farmers have been able to raise
productivity, improve quality, manage risk and earn better prices. By creating a more efficient marketing channel,
e-Choupal reduces transaction costs and helps farmers to adjust/fine-tune crops types and qualities to changing
trends.
 As a direct marketing channel, virtually linked to the 'mandi' system for price discovery, 'e-Choupal' eliminates
wasteful intermediation and multiple handling. Thereby it significantly reduces transaction costs.

11. Thank you