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.

1. Leveraging IT in Indian Agriculture
e-Choupal Experience Sharing
R P Singh, Associate Director Extension

2. Indian Agriculture
Past, 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. The Potential & The Constraints
of 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. 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 farming
And, unlocking the potential of Indian Agriculture still remains a dream

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. The Making of
ITC eChoupal

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. The Insight - 1
Actually, these numerous intermediaries makeup for
weak infrastructure, and deliver critical value in each
leg 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 delivering
A more effective business model must be able to
leverage the physical transmission capabilities of
these intermediaries, yet disintermediate them from
the flow of information and market signals
 Answer : Leverage the power of Information Technology

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. The Insight - 3
Information Technology and Collaborative Business
Models 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 on
were 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
Operators
Answer: Unleash the power of small scale
entrepreneur

11. Ingredients of ITC eChoupal
1. 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 marketing
2. Physical Net Access and Community Interface through a lead
farmer identified from within the village and appointed as Choupal
Sanchalak
3. Interlocking network of partnerships brings the “best-in-class”
information, knowledge and inputs
 ITC + Met Dept + Universities + Input Cos + Sanyojaks (erstwhile
Commission Agents)

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. The Web Portals also have
Localised and customised weather information…

14. …Best Practices in Farming
Farmers across villages can interact among themselves

15. Laboratory Services are integrated too
For soil testing (agriculture) and virus testing (aquaculture)

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. Transaction Costs
The Mandi Chain
Rs per MT
Trolley Freight to Mandi = 100
Filling & Weighing Labour = 70
Farmer Incurs 270
Labour Khadi Karai = 50
Handling Loss = 50
V V2

18. Transaction Costs
The eChoupal Chain
Rs per MT
Trolley Freight to Mandi = 100
Filling & Weighing Labour = 70
Farmer Incurs 270
Labour Khadi Karai = 50
Handling Loss = 50

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. Speed Breaker 1 : Power
We are supplementing with Solar Power

21. Speed Breaker 2 : Connectivity
We are setting up VSATs

22. Speed Breaker 3 : First Time Net Usage
Significant amount of time & effort on training

23. Ensuring Equitable Distribution
The Public Oath
Video

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. 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. 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.

31. Current Setup
State (Crop)
MP (Soy, Wheat) 1700
Karnataka (Coffee) 70
AP (Shrimps) 50
UP (Wheat + Rice) 1500
Maharashtra(Soya) 1000
Rajasthan(Soya+Mustard) 700
Choupals 5020
Villages 26000
Farmers 2.6 million
Adding Six New Kiosks Every Day

32. 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

35. ITC Limited
e-Choupal
Thank You