Beginning in , ITC set up a network of ICT kiosks around the country, called e-Choupal (an open meeting place in a village). IT for Change Case Study. ITC has a diversified presence in Cigarettes, Hotels, Paperboards of rural value systems that not a single case of theft, misappropriation. The ITC e-Choupal Initiative Case Analysis by Group 7 Jigeesha Nayyar | KC Siddharth | 03? Kunjal Kaw | Mohit Sadhwani | Naman Misra |
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Sustainability through mutual respect The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.
A farmer can visit the kiosk and show a sample of his produce to the sanchalak, who gives him a quote.
Farmers using e-Choupal on an average receive 2. The second was to facilitate collaboration between the many parties required to fulfill the spectrum of farmer needs. ITC also uses e-Choupal as a medium to advertise consumer products. Agriculture is vital to India. Large international companies had better margin-to-risk ratios because of wider options for risk management and arbitrage.
The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement. The e-Choupal model has shown echoupxl a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit echoupa and rural communities as well as company echoupa.
The sustainability of the engagement comes from the idea that neither the corporate nor social ccase will be subordinated in favor of the other. ITC gains as intermediaries are removed, and transportation costs decrease.
The e-Choupals are operated by a sanchalak operatorwho also doubles up as an ITC salesman.
Website optimised for IE 7. How do we know it is effective? In the Mandi, the following operational process was followed: Archives Select Year Copyright The DeSai Group. The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient landholdings.
Back to Press Reports. The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming techniques. How do we know when we achieve our goals?
The ITC e-Choupal Initiative Case Analysis by Group 7 | Raghav Singla –
The model is centered on a network of e-Choupals that serve both as a social gathering place for stuy of information and an e-commerce hub. Ecjoupal providing information on weather and scientific farming methods, and the supply of high quality farm inputs, ITC enabled the farmers to improve their efficiency and shudy of their output.
If the farmer finds the quote attractive, he can take the produce to an ITC collection centre and receive payment within two hours. Bythe opening up of the Indian market had brought in international competition. The business model The model is centered on a network of e-Choupals that serve both as echoupall social gathering place echoupak exchange of information and an e-commerce hub.
Select Year Critical factors in the apparent success of the venture are ITC’s extensive knowledge of agriculture, the effort ITC has made to retain many aspects of the existing production system, including retaining the integral importance of local echuopal, the company’s commitment to transparency, and the respect and fairness with which both farmers and local partners are treated.
ITC has plans to saturate the sector in which it works with e-Choupals, such that a farmer has to travel no more than five kilometers to reach one. What began as an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and other cropping systems in rural India has also created a highly profitable distribution and product design channel for the Company.
E-choupal has also established a low-cost fulfillment system focused on the needs of rural India that has helped in mitigating rural isolation, create more transparency for farmers, and improve their productivity and incomes. Press Report Back to Press Reports. E-choupal brought about a strategic chage to the process: Yet most Indian farmers have remained quite poor. The agricultural system has also traditionally been unfair to primary producers.
E-Choupal was seen as a medium of delivering ict market information independent of the mandi, thus allowing the farmer an empowered choice of where and when to sell his crop. The intermediaries were not removed from the value-chain, instead they were made as samyojaks coordinators who assist ITC in setting up new e-choupals.
They also handle the physical echoupap of the goods and earn a commission on it. It produces 23 per cent of the GDP, feeds a billion people, and employs 66 per cent of the workforce.
Web-enabled real time data on crop prices provide the farmer with the market prices for their produce.