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Home /Archive / Business Today / Case Study / November 1, 2009 /
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e-Choupal version 3.0E. Kumar Sharma Edition:November 1,
2009
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Comm ent
1, 2, 3 of e-Choupal
Version 1.0
The Start
IDEA: To give power of scale to smallfarmers by aggregating them
as
sellers (of produce) and as buyers (of
farm inputs)
FARMERS' GAIN: They get bargain
and choice - the two key virtues of
competition
ITC'S GAIN: Access to inputs for its
agri business; offer the use of
network to other companies
Version 2.0
The Scale-up
REACH: By 2006, 40,000 villages
covering 4 million farmers
OFFERING: Network now offered five
services:
Information: weather, price, etc.
Knowledge: farming methods,
soil testing, etc.
Purchase: Seed, fertiliser...to
insurance
Sales: Farmers sell crops to ITC
centres
Other: Cattle care, water
harvesting, women employment etc
When you run Corporate India's largest, most ambitious and
most celebrated rural initiative, you better know the
following:
1) That adversities could crop up unexpectedly.
2) That some adversities can be turned into opportunities.
3) And that every little opportunity has to be made most of.It
was so with ITC, the company behind the e-Choupal initiative
that had reached four million farmers in six states in six years
till
2006. At one point, the company was opening 5-6 e-Choupals a
day and had a target of reaching 100 million farmers. That hit
a
roadblock of sorts in 2006-07. The very basis of the
e-Choupal's
core business-commodity sourcing from farmers directly-was
endangered with the government clamping down on companies
trading with farmers directly. The trigger for the
government
reaction was the spike in wholesale price inflation, which
rose
close to double-digit figures in case of some commodities in
2006-07.
Though the impact varied from state to state, the larger
foreboding was loud and clear: The acts of government taken
inthe national interest could hobble e-Choupal's anchor
business,
even if temporarily. What does the company do then? Roll out
plans for Version 3 of e-Choupal that will add at least two
more
anchor businesses to start with and deepen the engagement
with individual farmers way beyond what was being done in
Version 1 and 2. "The idea is to discover new anchor
businesses and try and insulate the e-Choupal model from the
risks of reversal in government's agri reforms," says S.
Sivakumar, Chief Executive, Agri-Business, ITC, and the man
who scripted the e-Choupal model of business.
Technologically, it would mean adding mobile phones to the
existing channels of Net-based computers and Choupal
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