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ITC’s e-Choupal

by Sagar Gubbi last modified 2007-09-04 11:54

Empowering Indian agriculture through technology

It is simply amazing how conversations with people of varied life experiences can bring a completely different perspective to one's thoughts. Last year, during one such conversation with my dad, I was going gung-ho about technology's infinite possibilities and its enormous potential. My dad, who hails from an agricultural village, listened to me patiently till the end and said "I see. But tell me one thing. How has your technology improved the lives of our farmers?” I didn't have an answer at that time, so I promised to revert with some concrete examples. And my search ended the very next day, when a friend told me about ITC's e-Choupal initiative.

ITC is one of India's largest and oldest business conglomerates, with business interests in hotels, cigarettes and tobacco, consumer goods, agricultural trading etc. ITC's International Business Division (IBD) is involved in providing a supply chain for India’s agricultural produce, through exports or otherwise. When ITC made its foray into agribusiness, it realized that there were numerous constraints, such as innumerable intermediaries, poor infrastructure, lack of modern agricultural know-how etc, which plagued Indian agriculture. As a solution to all these problems, ITC launched the e-Choupal initiative.

Choupal in Hindi means a gathering place. Taking this gathering place to the virtual world, ITC introduced the e-Choupal initiative in the year 2000. This e-revolution of rural India began with the soybean farmers of the villages in Madhya Pradesh region but has since expanded to nearly 40,000 villages across India and serves nearly 4 million farmers today.

The modus operandi of e-Choupal is simple. ITC sets up kiosks in villages, which typically have a computer with an internet connection. One of the farmers in the village is trained to use the computer. He will be responsible for helping the other farmers in using the computer. Information about advanced farming techniques, market demands, weather forecast and current market prices of agricultural produce, can be obtained by the farmers through the kiosk. Access to an e-Choupal kiosk is free of cost. This information helps the farmers grow crops which will be in demand and also which suit the weather forecast of that particular year. It also helps them get a fair price for their produce, which wouldn’t have been possible otherwise due to intermediaries.

This initiative also creates a direct supply chain to ITC, which buys the agricultural produce directly from the farmers. ITC ensures a secure supply of produce to itself through this and also lowers its procurement costs by eliminating traders and intermediaries. ITC also uses the e-Choupal as a medium to advertise its consumer products where farmers can buy ITC’s products.

The e-Choupal initiative is a fantastic example of how technology can be used to create win-win situation for both the enterprise and the market. The initiative, which has transformed ordinary farmers into savvy marketers, has been featured in a World Resources Institute’s case study and C K Prahalad’s book, Fortune at the bottom of the pyramid: Eradicating poverty through profits. The initiative aims to reach 100,000 villages and 10 million farmers in the next few years. And also allows me to stay gung-ho about technology!

Radio Farm

 Posted by Badarivishal at 2007-09-13 19:28

Hi Sagar, One thing that i get to mind on benefitting farmers through technology is the power of radio. The radio stations, especially the govt ones have a daily program for farmers. There are experts interacting with the farmers who call the radio station. i have listened to this prog few times. Farmers ask some very basic Questions which suggest us what they are missing. I felt that they always live in the fear of market and weather uncertainties and overproduce. Still our farmers do not have answer for these questions. But i should say, radio is a very powerful tool, for the reach it has.We must take the power to the mobile phones which are gaining more ground than any technological product. -- Badri

ITC’s e-Choupal

 Posted by SV Nagappa at 2007-09-29 23:21

Hi Sagar I am pleasently surprised to see a Techi who is not self absorbed. Amazing. I am also from Bangalore and dream of a day when I can pass on my agricultural knowledge and training to blend with the farmers in Karnataka to increase their wealth and wellbeing. The only way most of illiterate rural people can be gainfully employed is to send them back to their villages and arm them with technology and knowledge. I wish someone would do e-choupal types of thing in kannada ( your father could help) and kannada agricultural scientists based overseas like me could help. How wonderful that would be.

Fantastic!

 Posted by Sagar Gubbi at 2007-09-30 05:32

Dear Mr. Nagappa, Great to see your comment. And yes, it would be fantastic if we can develop information systems for rural poor. I think information and education are the two keys to achieve inclusive economic development in India. I am currently exploring a couple of ideas in this direction. And I would definitely require help from people like you. I will keep you posted!

kannada e-choupal model

 Posted by SV Nagappa at 2007-09-30 15:06

Thanks for your reply Sagar. The main things that a farmer would want are weather information, market prices and variety information. The first thing is to collect variety information from various companies etc and link them together (in kannada). This would help them to make varietal choices. Just the other day I provided this to a group of farmers here in Australia. This is a valuable source of information as otherwise they will keep using outdated information and therefore outdated varieties. This has to be done depite which company varieties come from. Weather and market information I belive they are already avialble in India. Link them all together in Kannada there is basic stuff already. Even if one cant do it on the web it can be done via cds initially with varieties and current practices of management. Not everything needs to be hi fi. By the way in the west even females are very much involved in Agriculture Science not just males. I am one of them. If your father knows kannada he could help to translate information to simple kannada.

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