Issues with agriculture in india Agriculture 23% of the GDP, feeds a billion people and employs 66% of the

e workforce Non-optimal farming practices and unpredictable weather patterns. Corrupt and inefficient systems. unprofessional business environment made the sector unattractive . Green revolution and by 1970 we became exporter for the agricultural yield still most Indian farmers are very poor as a result of land redistribution policies ANSWER WAS ---- ITC initiative E--CHOUPAL

Business model

Village Trader EChoupal

Farm er

Gha ni

Regulated Markets (Fair Market Price)

Producer Coop (Negotiated Price) Cooperative Mill

Commission Agent (hired by ITC)

ITC Commission

Private Miller ITC

Farmer Benefits Overall rural development total yield profit and opening of alternate option

Multi Uses of Internet

The total benefit to farmers includes Lower prices for inputs and other goods, higher yields sense of empowerment

Commission fee reduction in mandis

ITC product innovation plus gains in logistics, marketing tactics

USE of technology

Is it a Profitable Rural transformation Issues

1. transport 2. electric Power 3.Information and Infrastructure 4. lacking in modern resources

Companies restraining to enter the rural market

Can the modern methodology and technology IS be deployed in rural India profitably

ITC group is one of Indias foremost private sector companies

Presences in ITC has a diversified presence tobacco hotels, paperboards, specialty papers, packaging, agri-business, branded apparel, packaged foods and other fast moving consumer goods ITC's International Business Division (IBD) agri-trading company aiming to offer the world the best of India's produce. Because agricultural commodity trading business was small compared to international players

Started with the CSR and shareholder value creation with social development
The oil seed complex

Re- engineer not reconstruct Address the whole, not just one part IT- Driven solution I. Delivery of real time information II. Collaboration between parties Risk assessment

Selecting And Training of Sanchalak Motivation qualities for their role I. Help their communities II. Profitable Business for themselves III. Getting Access to a functional computer 2. Co operating commission agent
1.

Pricing Inbound logistic Inspection and grading Weighing and payment Hub logistics

Maintains commercial volumes by sequencing procurement and sales year-round

Crop specific intervention

Low-Cost Last Mile.

Intelligent First-Mile

Capturing Credit History Transaction and Administration Costs Non-cash loans for farm inputs Loans to sanchalaks. Sanchalak recommended loans Insurance and Risk Management Services

Organization Architecture

Information Architecture

Application Architecture

Technical Architecture

TRAINING DATA GATHERED AND MANAGEED SUPPORT

APPLICATIO N

SERVERS

GOALS

CLIENTS

PLANNNG

RESOURCE OCCUPIED PERFORMA NCE MATRIX

NETWORK

PEOPLE

SYSTEM SOFTWARE

PROCESS

Power
Solar battery

Connectivity

Computer hardware
Intel Celeron processor

Dial up connection

UPS

V-SAT

printers

OS
Windows 98

Word processor
Ankur

Other
Sunera kal Video clips

Boon to villages include: Children are using computers for schoolwork and games Operation and agricultural strategy by (sanchalaks) World wide exposure to villager for agricultural benefit Pro- youngsters (entertainment factor) Flaws with the system Commission agents reduction in there share Labour from mandis lost jobs (but will be reemployed by ITC) Farmers purcahses near mandis reduced

Mandi TAX now paid to mandis nearest to procurement center thus result

The efficiency pressures imposed by e-Choupal has spurred industry consolid

Challenges

o Radical shifts in computing access could fundamentally alter community-base models o Number and power of the sanchalaks o The scope of the e-Choupal operation

o Speed of expansion create real threats to execution management.

o Competitive environment ( need and demand and expectation increased) o Access to the system o Leveraging the poor and females with same rule book

Future Strategy Valuation and grading the output Traceability in supply chain & food safety and quality control multiple buyers and sellers execute a range of transactions (not ITC will be sole in charge) rural marketing and distribution strategy with organization of people, processes, and partners vision of eventually sourcing IT-enabled services from rural India Telemedicine, eco-tourism, traditional medicine, and traditional crafts are some of the services that can be sourced from rural India