E-Choupal | routetoglobalvillage

e-Choupal is an India-based business initiative by ITC Limited that provides Internet access to rural farmers. The purpose is to inform and empower them and, as a result, to improve the quality of agricultural goods and the quality of life for farmers.

ITC Limited (formerly India Tobacco Company Limited) is a consumer product and agribusiness conglomerate in India known for their production of cigarettes, specialty paper, food products and packaging services. Through the e-Choupal initiative, ITC has created more than 6,500 e-Choupal computer stations in rural areas that serve an average of six hundred farmers each. Using this technology, farmers may order supplies, learn about best agricultural practices, receive weather reports and read about pricing for crops throughout the region.

Farmers can use that information to their own prices. They also obtain higher profit margins because they’re no longer forced to sell through a middleman. ITC Limited also benefits from the initiative, by simplifying its supply chains and increasing its profits.

Why is it Innovative

The eChoupal provided several economics benefits to ITC as well as the customer. Web-enabled real time data on crop prices provide the farmer with the market prices for their produce. ITC gains as intermediaries are removed, and transportation costs decrease.
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 transportation of the goods and earn a commission on it.
By 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 quality of their output. This also provided indirect benefits to the company reducing the risk in several areas of the supply chain
eChoupal also provided ITC with an effective marketing vehicle. ITC gives “Bonus points” for produce which are much higher than quality norm. This can be exchanged for other ITC products. ITC also uses e-Choupal as a medium to advertise consumer products.

The eChoupal provided several economics benefits to ITC as well as the customer. Web-enabled real time data on crop prices provide the farmer with the market prices for their produce. ITC gains as intermediaries are removed, and transportation costs decrease.

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 transportation of the goods and earn a commission on it.

By 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 quality of their output. This also provided indirect benefits to the company reducing the risk in several areas of the supply chain

eChoupal also provided ITC with an effective marketing vehicle. ITC gives “Bonus points” for produce which are much higher than quality norm. This can be exchanged for other ITC products. ITC also uses e-Choupal as a medium to advertise consumer products.