Itc E Choupal Case Study Summary

Itc E Choupal Case Study Summary-2
ITC Limited had to buy separately from the traders or markets, with little quality control and high transaction costs.

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However, the agriculture landscape in India is characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries.

In this system, crops are sold by rural farmers with small holdings to traders, who act as purchasing agents for corporate buyers at a local, government-mandated marketplace called a .

However, most rural Indian farmers have remained quite poor, due to remnants of an archaic agricultural system based on small landholdings, scarcity-era regulations and inefficient market structures.

In mature agricultural economies such as the United States, farmers benefit greatly from easy access to market information and vertical market integration.

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The e-Choupal, India’s largest rural ICT initiative, leverages information technology and the Internet to improve efficiency in the rural Indian agricultural sector, promoting greater information exchange and the creation of an alternative market structure.

Such inefficiencies drastically increased transaction costs and slashed potential profits for the rural Indian farmers.

Under the e-Choupal (which means "village square" or "gathering place" in Hindi) project, Internet centers are set up in rural Indian farming villages to provide farmers of soybeans, wheat, coffee, and shrimp with easy access to real-time information and the Internet.

The e-Choupal portal also provides the rural agricultural communities with information in their respective local languages on weather forecasts, education on improved farm practices and risk management, and as well as knowledge and purchases of better quality farm inputs.

Through the Internet, farmers can even share best practices and consult with an agronomist by e-mail to seek assistance for problems associated with their crops.

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