ITC e-Choupal

Farmer empowerment through e-Choupals

ITC's unique strength in this business is the extensive backward linkages it has established with the farmers. This networking with the farming community has enabled ITC to build a highly cost effective procurement system. ITC had made significant investments in web-enabling the Indian farmer. Christened 'e-Choupal', ITC's empowerment plan for the farmer centres around providing Internet kiosks in villages. Farmers used this technology infrastructure to access on-line information. Data accessed by the farmers relate to the weather, crop conditions, best practices in farming, ruling international prices and a host of other relevant information. e-Choupal today is the world's largest rural digital infrastructure.

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The unique e-Choupal model created a significant two-way multi-dimensional channel which could efficiently carry products and services into and out of rural India, while recovering the associated costs through agri-sourcing led efficiencies. This initiative now comprises about 6100 installations covering over 35000 villages and serving over 4 million farmers. 


Supporting the e-Choupal network are ITC's procurement teams, handling agents and contemporary warehousing facilities across India, enabling its Agri Business to source identity preserved merchandise even at short notice. ITC's processors are handpicked, reliable high quality outfits who ensure hygienic processing and modern packaging. Strict quality control is exercised at each stage to preserve the natural flavour, taste and aroma of the various agri products.

Launched in June 2000, 'e-Choupal', has already become the largest initiative among all Internet-based interventions in rural India. 'e-Choupal' services today reach out to over 4million farmers growing a range of crops - soyabean, coffee, wheat, rice, pulses, shrimp -in over 35000 villages through 6100 kiosks across 10 states (Madhya Pradesh, Haryana,Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Kerala, Maharashtra, Andhra Pradeshand Tamil Nadu).The problems encountered while setting up and managing these 'e-Choupals' are primarily of infrastructural inadequacies, including power supply, telecom connectivity and bandwidth, apart from the challenge of imparting skills to the first time internet users in remote and inaccessible areas of rural India.Several alternative and innovative solutions - some of them expensive - are being deployed to overcome these challenges e.g. Power back-up through batteries charged by Solar panels, upgrading BSNL exchanges with RNS kits, installation of VSAT equipment, Mobile Choupals, local caching of static content on website to stream in the dynamic content more efficiently, 24x7 helpdesk etc. Going forward, the roadmap includes plans to integrate bulk storage, handling & transportation facilities to improve logistics efficiencies. As India's 'kissan' Company, ITC has taken care to involve farmers in the designing and management of the entire 'e-Choupal' initiative. The active participation of farmers in this rural initiative has created a sense of ownership in the project among the farmers. They see the 'e-Choupal' as the new age cooperative for all practical purposes. This enthusiastic response from farmers has encouraged ITC to plan for the extension of the 'e-Choupal' initiative to altogether 15 states across India over the next few years. On the anvil are plans to channelise other services related to micro-credit, health and education through the same 'e-Choupal' infrastructure.


Another path-breaking initiative - the 'Choupal Pradarshan Khet', brings the benefits of agricultural best practices to small and marginal farmers. Backed by intensive research and knowledge, this initiative provides Agri-extension services which are qualitatively superior and involves pro-active handholding of farmers to ensure productivity gains. The services are customised to meet local conditions, ensure timely availability of farm inputs including credit, and provide a cluster of farmer schools for capturing indigenous knowledge.

Awards and Recognitions: ITC e-Choupal
  • United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary initiatives in agri business through the e-Choupal.
  • The Ashoka - Changemakers 'Health For All' Award 2006 for the Rural Health Services model for delivery of health services through the e-Choupals.

  • The Stockholm Challenge 2006. This award is for using information technology for the economic development of rural communities. 

  • Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations. The first of its kind in India, based on parameters of number of lives impacted, degree of impact on organization and environment, uniqueness, leverage of resources and whether it was scalable and sustainable, e-Choupal was declared as one of 'India's Best Innovations'.
  • The Development Gateway Award 2005 (previously known as the Petersberg Prize) for the trailblazing e-Choupal initiative. ITC is the first Indian company and the second in the world to win this prestigious award.

  • The 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Company received this award for its e-Choupal and social and farm forestry initiatives that are impactfully transforming lives and landscapes in rural India.
  • The Corporate Social Responsibility Award 2004 from The Energy and Resources Institute (TERI) for its e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector.

  • The inaugural 'World Business Award', instituted jointly by the International Chamber of Commerce (ICC), the HRH Prince of Wales International Business Leaders Forum (IBLF) and the United Nations Development Programme (UNDP). This award recognises companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries.

  • The 'Enterprise Business Transformation Award' for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of Pennsylvania.

  • PC Quest's IT Implementation Award in the 'Best Project' category.
     
  • The Golden Peacock Innovation Award 2004.
  • The NASSCOM award for 'Best IT User in FMCG' in 2003. The Award is a recognition of ITC's successful integration of its IT usage with its business processes.

  • The Seagate Intelligent Enterprise of the Year 2003 Award, for the most innovative usage of Information Technology.
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