ITC's e-Choupal initiative aims to directly link rural Indian farmers to the internet for agricultural product procurement. The program involves installing computers with internet access in rural areas to provide farmers with up-to-date market and farming information. Currently, over 6,500 e-Choupals in over 40,000 villages serve more than 4 million farmers and villagers. The initiative aims to reach 100,000+ villages by 2012. In addition to procurement, e-Choupal provides rural distribution of goods and financial services to farmers while creating rural infrastructure and jobs. It has been an innovative strategy for rural market development and wealth creation in India.

1. ITC – e Choupal
A Comparative Study

2. E – Choupal (June 2000)
 An initiative of ITC Limited to link directly with
rural farmers via the Internet for procurement
of agricultural & aquaculture products
 The programme involves the installation of
computers with Internet access in rural areas
of India to offer farmers up-to-date marketing
and agricultural information.

3. To Develop a Channel Directly Linking farmers to
Organizations:
 Initial Objective:
⋗Access to target soya producing markets & achieve organized
buying over the current Indian soya procurements systems in long
term
 Mid Objective:
⋗Access to key agricultural/products producing markets & achieve
organized buying & selling in key Indian rural markets
 Current Objective:
⋗To expand the network further & offer a complete package to
server rural customer daily needs & develop the platform for the
future (to get services like web tourism)

4. The eChoupal infrastructure
• ITC Kiosk with Internet Access and Local Language Content
(Weather, Prices, Farming Practices etc)
– In the house of one trained farmer, Sanchalak
– Within walking distance of target farmers
• Warehousing Hub with Internet Access
– Managed by the erstwhile middleman, Samyojak
– Within tractorable distance of target farmers

5. The ITC eChoupal Scale
 Today
– 6500 Choupals are serving over 4million farmers & villagers
across 40000 villages (adding 6 a day)
• Higher capture of consumer spend
• Building capacities of rural communities
 Vision
– Reach 100,000+villages by 2012
• Dealing with wider variety of crops
• Creating infrastructure for Education and Healthcare
services
• Enhancing Quality of Life in rural India

6. E-choupal: Strategic Thrust
 Procurement: cost & quality optimization
o Strategic sourcing support to the Foods business (support creation of
verticals in wheat, soya, corn, potato etc.)
o Cost-effective sourcing for exports/domestic external business
 Rural Distribution
o ‘Last mile connectivity’: 100 partnering companies
o Diverse range of goods/services: FMCG, consumer durables, agri-inputs,
paid extension services etc.
 Financial Services
o Insurance (focus: weather)
o Credit (focus: Kisan Credit Card scheme)
 Rural retail
o 24 Choupal Saagars operational
6

7. E- Choupal Saagar – Benefits to a Farmer
• Option of selling to Choupal Saagar or Mandies
• In some crops, farmers earns 25% higher prices than
selling to Mandies
• Profit realization increased upto 60%
• Availability of Loan facilities
• Availability of brands/quality products at best prices
• Exposure to latest information
• Difference in net earning will be high if saving on
commission to middle man & cost of transport are
considered

10. Main Competitiors
 Godrej Aadhar – Godrej
 Kisan Seva Kendra - IOC
 Tata Kisan Sansar - TATA Chemicals
 Mahindra Subh Labh – M&M
 HUL iShakti – HUL
 Parry’s Conner - Murugappa Group

11. Conclusion
• An innovative strategy which is elaborative & extensive in
rural markets so far.
• Rural wealth creation in agriculture through securing
empowerment, collaboration & competition
• A transformational initiative for sustainable development of
society
• Commitment to transparency & the respect & fairness with
which both farmers & local partners are treated.

12. Thank
You
Venkatesh. B
Inderveer Singh .B