The paper "Indian Local Farmers and ITC - Creating a Transformative Agri-Business Model " is a good example of a marketing case study. This case study analyzes the efforts and the achievements attained by the collaboration between the Indian local farmers and ITC in creating a transformative agri-business model that not only allowed the dissemination of vital information to farmers but also proved beneficial to trade. The paper takes an in-depth look at the e-choupal concept with particular emphasis on the challenges, benefits, and possible practical solutions that could better the system.
Further, the analysis seeks to understand how the idea could have been implemented in a much more prudent manner as to avoid the evident hurdles that characterized the system. Undeniably, agriculture plays a pivotal role in the overall economy of the Indian nation. With this in mind, it is understandable why a large chunk of Indian employees are absorbed into this sector. However, even with this high number of workers in the sector, the living standards of the Indian people have remained relatively low. With the inconsistent monsoon patterns in the climatic zones and intense land fragmentation, it has become an arduous task for a majority of the Indian population to embark on self-sufficient agricultural exploits.
Moreover, the rural areas have been characterized by poor infrastructure, a factor that has contributed heavily towards an increased number of intermediaries, thus lower profit margins for the farmers. Traditionally, the Indian farmers have depended heavily on the government, insurance firms, and institutions of higher learning for provision of basic farm inputs and insurance policy covers. In as much as this might seem quite appealing, a critical analysis of this decency reveals that farmers have to pass through a retailer who in turn link them u with the manufacturers.
Even with aggressive government regulation of prices and facilitation of equitable markets to farmers, it is clear that eventually, these protocols lead to an escalation of prices leaving the farmers with little to take home for profits. The e-choupal model comes in handy as a solution to these challenges. The e-choupal model essentially was formed to serve as a platform whereby farmers would be in a position to communicate, negotiate, and transact on a direct manner with the processors.
This model provided one major advantage to farmers; they would achieve many competitive prices for their agricultural products. In addition to this, the system allows farmers to access once expensive facilities such as the possibility of having their goods ferried from the rural areas to the targeted markets, ability to access bridge financing and to some extent insurance covers. ITC Limited has played a critical role in the rural Indian market with regards to the e-choupal system. The persistent efforts of ITC have seen the e-choupal system rising to become the widest network of internet-based agriculture marketing and intervention platform inside the rural Indian populace.
What has made the e-choupal system particularly attractive is the ability to provide farmers with real-time and informative knowledge of anticipated market demands. In turn, this has enabled Indian farmers to engage in prudent farming patterns where they are guided by the market forces. Moreover, this online platform has proved beneficial in giving farmers now how on the most recent scientific researches on farming methods and practices and what they need to do to improve their outputs.
Further, the platform has opened the scope of the rural Indian population to a wider market since the web-based platform provides farmers with information on market prices not only at the village level but also at a global level. What makes it more appealing is the fact the ITC made it possible for farmers to access this information even with their local languages such as Telegu and Hindi. This service has also made it very easy for rural farmers to access a wide market with the possibility of farmers getting their customers at the doorsteps to their premises through the links and networks created on the online portal.