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e-Commerce Initiatives in Rural Areas

Corporate Initiatives

ITC e-Choupal

The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture,
characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others.

"e-Choupal' also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability. This makes him and Indian agribusiness sector globally incompetitive, despite rich and abundant natural resources.

This market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes and enlarged capacity for farmer risk management, larger investments and higher quality and productivity. Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. This will create another virtuous cycle propelling the economy into a higher growth trajectory.

Following is the value chain diagram of the agricultural produce from farm to factory: -

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* Contributed by: -
Shruti Rustagi,
Indian Institute of Management, Lucknow.