List <strong>of</strong> <strong>Case</strong> <strong>Studies</strong>1. e-Choupal; internet kiosks in rural areas in India……………………………………………………………..........4<strong>2.</strong> Cocoa chain in Indonesia, Island <strong>of</strong> Flores…………………………………………………………………..……..83. Food through the private sector, Zambia…………………………………………………………………………134. Rice millers driving productivity and capacity in smallholder rice farming in Lao PDR……………………...….185. Promotion <strong>of</strong> the rice value chain in Benin………………………………………………………………………..236. Oil seeds in Uganda: Combining business-led development and multi-stakeholder dynamics in boosting adiverse national sub-sector……………………………………………………………………………….……….277. Agro-dealers in Zimbabwe: Scaling input provision as key for successful small farmer engagement…………328. Enhancing onion seed production in Niger…………………………………………………………………….….379. Pastoralist livestock markets in Kenya: Establishing thriving and reliable livestock markets through aninnovative public-private arrangement.………………………………………………………………………..…..4210. São Tome and Principe Participatory Smallholder Agriculture and Artisanal Fisheries DevelopmentProgramme (PAPAFPA) …………………………………………………………………………………...……….4711. El Salvador, Rural Development Project for the Central Region (PRODAP-II) …………………………….....…501<strong>2.</strong> <strong>Initiative</strong> for promoting rural entrepreneurship in Rwanda………………………………………………………5313. Pathways towards sustainability: Farmer organisations in the driver’s seat, Ecuado……………………..…..563
1. e-Choupal: internet kiosks in rural areas, IndiaAuthor and organization: IFADThis case is one <strong>of</strong> a series specifically prepared by IFAD and local partners for the “<strong>Seas</strong> <strong>of</strong> <strong>Change</strong>” event. Thebusiness partner involved in the case is e-Choupal.Total cost:NAFinancierPrivate company, ITC (Agribusiness Division)Year <strong>of</strong> establishment: 2000Value chain approach: Market-driven1. Context and backgroundBackground. An example where innovative ICT applications have been developed by the private sector playersto benefit small farmers and simultaneously enhance the business interests <strong>of</strong> the company. One such privateinitiative has been undertaken in six states in India by ITC Ltd, a large and well diversified retailing company withannual sales <strong>of</strong> about USD 4.75 billion, and market capitalization <strong>of</strong> USD 18 billion.<strong>2.</strong> Underlying business modelIntervention. In June 2000 the company’s Agribusiness Division undertook a novel approach, by purchasingfrom farmers directly by bypassing local markets (called mandis) that are dominated by middle men. The Choupalis a Hindi word that means “village meeting place”, and the e-Choupal is an internet kiosk, a virtual market placewhere farmers can transact directly with other actors including ITC. The system gives farmers more control overtheir choices, a higher pr<strong>of</strong>it margin on their crops, and access to information that improves their productivity. Byproviding a more transparent process and empowering local people, trust and fairness is enhanced. Theincreased efficiencies and potential for improving crop quality contribute to making agriculture more competitive.Part <strong>of</strong> the innovation is represented by the fact that sanchalaks (computer operators) allow farmers to usetechnology even though they are computer illiterate. Sanchalaks act as agents for ITC and allow farmers topurchase inputs and services through internet. The Sanchalaks are compensated by ITC for their services.Sales to ITC proceed as follows: farmers carry a sample <strong>of</strong> their produce to a local kiosk, receive a spot quotefrom the sanchalak, and – if the farmer accepts the quote – the product can be sold directly at an ITC collectioncentre where they are paid within two hours. The transportation cost is reimbursed to the farmer, and if thefarmer is located in a remote area, the product can be sold to the sanchalak or to a nearby collection centre.Furthermore, the handling systems at the ITC collection centre ensures that tractors, trolleys, or trucks candirectly unload their produce without spilling any grain, and a modern weighbridge ensures precise weighingreducing production handling losses.This system has proven to be more efficient than that <strong>of</strong> mandis, the traditional Indian market places. In fact, inaddition to better prices, reduction <strong>of</strong> losses due to spillage, clear and transparent price and qualitydetermination, lower marketing costs for the farmers, and shorter lead times for receiving payments (two-threehours versus two-three days at mandis) are some <strong>of</strong> the key benefits <strong>of</strong> the e-choupal compared to the mandimodel. The biggest benefit arises from transparency. Mandi commission agents use a small weighing scale thatin most cases causes the measurement to be inaccurate. Besides wastage levels are usually higher becauseagents tend to throw away some grain while evaluating the quality.The intermediaries under the e-Choupal model are the samayojaks – coordinators – who assist ITC in setting upnew e-Choupals by conducting village surveys and by identifying the best sanchalaks. They also manage thephysical transportation <strong>of</strong> sales made at the e-Choupal, collect price data from local auctions and maintainrecords. These coordinators are also compensated by ITC.4
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