Echoupal
Essay Preview: Echoupal
Report this essay
About eChoupal
ITCs International Business Division, one of Indias largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis.
The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others.
e-Choupal also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability – low investment – low productivity – weak market orientation – low value addition – low margin – low risk taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources.
Such a market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk management, larger investments and higher quality and productivity.
Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. This will create another virtuous cycle propelling the economy into a higher growth trajectory.
The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, e-Choupal leverages Information Technology to virtually cluster all the value chain participants, delivering the same benefits as vertical integration does in mature agricultural economies like the USA.
e-Choupal makes use of the physical transmission capabilities of current intermediaries – aggregation, logistics, counter-party risk and bridge financing -while disintermediating them from the chain of information flow and market signals.
With a judicious blend of click & mortar capabilities, village internet kiosks managed by farmers – called sanchalaks – themselves, enable the agricultural community access ready information in their local language on the weather & market prices, disseminate knowledge on scientific farm practices & risk management, facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers doorsteps (decision making is now information-based).
Real-time information and customised knowledge provided by e-Choupal enhance the ability of farmers to take decisions and align their farm