Sustainability Report 2011

ITC will continue to engage with policy makers through industry associations to enable a balanced regulatory and fiscal framework that addresses the challenges of the cigarette industry.

It has been ITC’s strategic intent to create multiple drivers of growth by building a portfolio of world-class businesses leveraging enterprise strengths, new technologies and proven internal competencies.

A quantum jump in farm yields and the creation of sustainable livelihoods in rural areas will necessitate a larger role of agri business in providing customised extension services to improve productivity through technology, regenerate and enrich land fertility, enable better usage of scarce water resources and adopt best practices in crop management. In addition, investments by agri business can help in creating rural infrastructure that can provide more efficient market linkages. It will also provide a new thrust in R&D for development of agri-inputs, new varieties of seeds and climate resistant crops for sustainable agriculture.

However, large investments by agri businesses are today rendered unviable by several Policy measures, such as the non-implementation of the ‘Model APMC Act’ by several states, lack of fiscal incentives for the creation of an efficient rural infrastructure as well as frequent imposition of the ‘Essential Commodities Act’ that restricts storage, transportation and exports.

In fact, ITC’s e-Choupal initiative, that has empowered over 4 million farmers by assiduously developing rural value chains over several years, was dealt a body blow by such regulations that are unable to distinguish between bonafide agri business and unscrupulous hoarders.

ITC will continue to engage with policy makers through appropriate fora for a balanced and pragmatic framework that addresses the unique requirements of India’s agri-sector and its farmers. ITC’s Agri Business ensures farmer empowerment through its extension work in crop development and sustainable agricultural practices.

ITC through its e-Choupal network has piloted a number of convergence programmes which will progressively transform the e-Choupal network into an all weather venture, relatively de-risked from regulatory uncertainties and market volatility. For eg, Choupal Haats have been established for raising product awareness, demonstration and brand marketing and targets availability of quality FMCG products in rural India.

Recognising the fast evolving needs of rural India, ITC’s e-Choupal is gearing up to provide a new spectrum of personalised agri advisory services, which leverage the spread of mobile telephony. Analytical tools are being designed to upload data through mobile phones to provide individualised services to farmers.