|
ITC's pioneering eChoupal initiative wins the 2005 Development Gateway Award from among 135 nominees, for enabling millions of Indian farmers to improve their livelihoods by accessing information on how best to grow and market their produce
This year's Development Gateway Award, presented by the Development Gateway Foundation, has gone to ITC's popular eChoupal programme. The US$ 100,000 award recognises the initiative's impact in enabling millions of farmers in India to improve their livelihoods with better access to information on growing and marketing their produce. Accepting the award at the Development Gateway Forum in Beijing, on September 16, 2005, ITC chairman Y C Deveshwar announced the addition of health services to its network of Internet kiosks six months ago, and the launch of a new educational services pilot within the next few months. "By delivering essential healthcare and educational information we can extend the benefits of eChoupal more deeply into the fabric of communities across India...And by recognising programmes like ours, the Development Gateway Foundation is spurring on the use of information technologies in communities worldwide, to build grassroots capacities and enhance the quality of life." What are eChoupals? Traditionally, choupals are community gathering places in the village where locals meet to discuss issues and iron out their problems. In the digital age, eChoupals are gradually revolutionising the way Indian farmers do business. The concept was pioneered by one of India's largest exporters of agricultural commodities, Indian Tobacco Company's International Business Division (ITC-IBD). Dubbed a click-and-mortar business model, the system constitutes an Internet-enabled kiosk in a village, which is manned by a prominent local farmer who is familiar with computers, known as the 'choupal sanchalak'. The setting up of each eChoupal entails an investment of between Rs 1-3 lakh. The 'sanchalak' mans the kiosk, is in touch with company representatives and guides farmers on the use of the technology. Given the levels of literacy and infrastructure limitations the sanchalak acts as the interface between the computer and the farmer. Farmers can use the kiosks to check the current market prices of their commodities, access market data, information on local and global weather and best farming practices. The entire contents of the site are accessible to registered choupal sanchalaks only. Till 1999, soya was ITC's main export item but the import of cheaper palm oil into the country prompted soya farmers to shift to other cash crops. In search of alternative solutions, a chance comment from a farmer at a choupal meeting led to the idea taking shape. ITC realised that constant contact with the farmer was the key. In June 2000, it launched the soya choupal to assist soya farmers in 2,500 villages across Madhya Pradesh. Starting with six eChoupals, by the end of 2002, it had succeeded in linking 6,000 villages with over 1,200 choupals at a cost of Rs 750 crore. All information based on the farmers' needs was gathered and the content rewritten, in some cases by the farmers themselves, for user-friendliness. Having succeeded with soya, the company expanded the experiment to four other states. Today ITC-IBD is buying agricultural products ranging from soyabean, coffee, shrimp, wheat, rice, pulses, all through eChoupals. Soil-testing services offered at the sanchalak's office also provided ITC with a valuable database. Rather than leaving the middlemen completely out of the loop, a role was created for some of them in the logistics operations with the title of 'choupal samyojak'. The oath-taking ceremony is public, to ensure transparency in the appointment of the 'samyojak' and 'sanchalak'. The farmers have the option of either bringing the produce to the ICT warehouse or factories and getting reimbursed for transport costs, or giving their supplies to one of the collection hubs or to the sanchalak. Initially apprehensive of the system, farmers are now accepting the concept. Sohan, a farmer says: "A visit to the mandi means an endless wait, which may often stretch into days, before a sale finalises. Often the rates offered are very low but then where is the option? Each one of us spends Rs 15 a tonne in bagging the produce and again Rs 18 a tonne for transportation, loading, and unloading." Shashank Joshi a soya farmer in Mendki village, Madhya Pradesh, has a new status as a sanchalak in ITC's soya eChoupal. A computer was installed in his house and farmers often visit to access data and drop their bags of soya off at his home-office. The days of hanging around the mandi, waiting for the agents to examine their stock and dictate prices, are over. Prices of major mandis are transparently provided on the computer screen, giving the farmer the option of selling his stock to ITC or a mandi of his choice. ITC claims that a farmer is able to save between Rs 400-500 a tonne, depending upon his proximity to the processing centre. Darshpreet K Gill, Manger, ITC-IBD, says that the processing centres are designed so that the farmers' waiting time is reduced by two hours. Efficient procedures include a material handling system that ensures that the tractors, trolleys, or trucks can directly unload the grain without much spillage. A modern weighbridge weighs the produce precisely, and cash is paid to all the farmers in less than 10 minutes. ITC, on the other hand, even after paying transport costs, saves about Rs 200 a tonne and gets direct access to the farmers in addition. The company has set up soya choupals in Madhya Pradesh, wheat choupals in Andhra Pradesh, coffee choupals in Karnataka and aqua choupals in Andhra Pradesh and Orissa. The next step was converting the computer from a mere supply chain mechanism to a one-stop shop for farmers, enabling them to not just sell product but also source their inputs and daily items for household use. For instance, ITC has tied up with Monsanto and Madhya Pradesh's Seeds Corporation for seeds and BASF for fertilisers. ITC charges a 10% commission on the percentage of sales accrued in the choupals, one half of which is passed on to the choupal sanchalak who executes the sale. It also sells solar lanterns and cooking oil through the same chain. Five years since the initiative was launched, there are now over 5,200 eChoupal Internet kiosks catering to 3.5 million farmers in 31,000 Indian villages. At the kiosks, farmers learn management techniques, order cheaper fertiliser and other supplies, check market prices and sell their produce online, with resulting increases in earnings of up to 20%. However, the eChoupal story is not without its drawbacks and detractors. ITC has to contend with poor rural infrastructure and unreliable Web connectivity -- the prime requisites for the success of this project. The situation is further complicated by the sheer dispersion of the villages in the country. Many food security and agricultural experts are anguished by the sums of money being pumped in to make it feasible. "While farmers struggle to procure one decent meal, millions are being spent in building new synergies between industry and the farmers," they say. And while company officials claim that the eChoupals have clearly identified and addressed the needs of villagers, Devinder Sharma, journalist and food security expert says, "First, it was the television, then telephones, and now computers. What do you expect from a farmer having less than two hectares of land holdings? These are only tactics to help the company grow." InfoChange News and Features, September 2005
|
