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ITS e choupal A CASE STUDY ON ITC -e- CHOUPAL SUPPLY CHAIN MANAGEMENT What is a choupal? An informal assembly of village people where they used to chat, gossip,
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company; it now generates US$150 million in revenues annually. The company has initiated an e-Choupal effort that places computers with Internet access in rural farming
and insurance policies, as well as soil testing services are sold through e-Choupal. E-Choupal as a distribution channel begins in agriculture but extends well into
innovations along with placing them on a global platform. ITCs E-Choupal ITC's e-Choupal is yet another BOP success story. The company has expanded its Fast Moving
Submitted by sarvesh121183 on February 3, 2008
Category: Miscellaneous
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A CASE STUDY
ON
ITC -e- CHOUPAL
SUPPLY CHAIN MANAGEMENT
What is a choupal?
An informal assembly of village people where they used to chat, gossip, share stories, information and views
It was of importance because through this gathering knowledge could be shared and captured.
Inefficient agricultural Supply Chain: Input as well as Output
Input side:
No access of quality inputs such as sowing seeds, herbicide, pesticides etc. to farmers
No access to information like weather report, market trends etc.
Agricultural yield only a 3rd to a quarter of global standards.
Over-dependence on monsoon
Poor farming practices.
Poor Credit systems
Vicious cycle formed due to low incomes resulting in low risk taking ability resulting in low investment resulting in low productivity again leading to low income.
Output side:
Farmers have to do long road journey with load of crops to mandi without getting paid their transportation cost.
It affects the price the farmers should get.
Using manual balance beam erroneous measure of weighing occurs and it incurs some losses to farmers.
Unofficially farmers are not paid just after the transaction in mandi.
There was no storage for unsold crops in mandi.
Farmers were unaware of market activity so they accordingly plan their harvest.
Above inconveniences has resulted lack of interest among farmers to invest more in crops.
Bidding price often used to be much less than spot prices and CAs often capitalized the difference which ideally should be farmers' return.
Need of e-Choupal:
To cut this middleman controlled mandi system between farmers and processor like ITC.
To empower farmers with all information...
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