This Indian experience may serve as the model for Nepali private sector to take similar initiative in Nepal.

For countries with larger rural bases, economic growth cannot be sustained without an effective growth strategy for the rural sector. While governments play a key role by initiating development of rural infrastructure – physical, social and institutional, the entrepreneurial energies of the private sector also need to be harnessed in bringing about the competitiveness of the rural sector. Increasing globalization implies liberalisation in the trade of agri products and it poses both formidable threats and exciting opportunities.

In the absence of competitiveness, it can threaten rural employment. On the other hand, competitiveness can lay open the opportunities of remunerative world markets.

No enterprise using agri raw materials can attain decisive international competitiveness in isolation. This competitiveness is inextricably intertwined with that of the farm sector and indeed, the entire value chain from the farm to the consumer, both domestic and international. The corporate sector has an enlightened vested interest in contributing to and securing the competitiveness of the entire value chain of which it is a part.

Corporate Participation

The imperative of the competitiveness in the farm sector and, in the entire value chain as a precondition for business success in a fast globalizing environment, has prompted the corporate sector to seek solutions with urgency. Rapid developments in information technology have made this possible by enabling:

a. Delivery of real time information and customising knowledge to improving farmers’ decision making ability to align farm output to market demands and securing quality, productivity and improved price discovery.

b. Aggregation of demand in the nature of a virtual producers’ cooperative to access high quality farm inputs and knowledge at the lowest cost

c. Setting up a direct marketing channel virtually linked to the mandi system for purposes of price discovery, eliminating wasteful intermediation, multiple handling and thus reducing transaction costs and making logistics efficient and cost effective.

The feasibility of the above model has been demonstrated by ITC Ltd., one of India’s most valuable corporations, through its click and mortar initiative called e-choupal (e-Kiosk). This initiative has already become one of rural India’s largest internet based interventions, reaching out to some quarter million farmers in two thousand villages through 460 choupals in the states of Madhya Pradesh, Karnataka and Andhra Pradesh.

Community Portals

The initiative was developed by ITC Infotech India Ltd., which had undertaken a project on behalf of the International Business Division (IBD) of ITC that specialises in agri-exports.

IBD’s soya export business depends largely on the soya outputs from the state of Madhya Pradesh (MP) in India. IBD wanted to expand their soya business and improve the productivity and yield of soya by providing information to farmers through a dynamic and personalised medium.

The Community Portal Solution from ITC Infotech is designed for organisations that interact with the farming community for their business needs. It is a net-based initiative that enables them to give and receive vital information by connecting with the farming community through a website.

The solution is mutually beneficial and provides the organisation with an opportunity to build relationships with the agricultural community, a key competitive business advantage. The project entailed providing a net-based interface to provide information to the soya farmers in Hindi language and also increasing the interaction between the farmers and IBD.

Project Brief

Soya Choupal offers the soya farmers of India all the information, products and services they need to enhance farm productivity, improve farm-gate price realization and cut transaction costs.

Farmers can access latest local and global information on weather, scientific farming practices as well as market prices at the village itself through this web portal - all in Hindi. Choupal also facilitates supply of high quality farm inputs as well as purchase of soybeans at the farmers doorstep.

Given the literacy and infrastructure constraints at village level, this model is designed to provide physical service support through a Choupal Sanchalak (Kiosk Operator) - himself a lead farmer - who acts as the interface between computer terminal and the farmers. Full contents of this site are therefore made available to the registered sanchalaks only.

The objectives of this project were:

(A) To provide a single-point source of comprehensive information related to the Soya farmers needs, such as:

· Weather forecast

· Crop Outlook

· Best Practices

· Market price Movements

· Related news

(B) Providing an interactive medium where farmers get personalised advice related to their problems.

(C) Provide a facility for IBD to obtain feedback from farmers on the crop output, market trends etc.

This was achieved through tie-ups with seed and fertiliser manufacturers as well as the meteorological department for a district-wise weather update.

Launched in June 2000 in six villages in MP, the project has already moved to cover 11 villages and the plan is to cover 1000 villages in six months.

What has proved to be the most important feature of this website is the local language interface that provides information to the farmer and his option to write back to IBD and ask for advice or information.

Implementation

This project was handled in sync with the MP state government. Each panchayat has been provided with a computer centre and an operator.

The farmer approaches the centre with his queries, which are answered by ITC experts within 24 hours.

Every time the farmer does this, ITC gathers basic information about the farmer, his crop yield, fertiliser utilisation, etc., thereby gradually building a solid database for the organisation.

This solution helps other interested corporates in following ways:

· Information on crop production

· The need to estimate the likely crop production in a season is vital, since it helps to plan the purchase. This will decide what rates you buy at.

· Therefore, a direct interaction with farmers will give you an edge over competitors since you are better prepared with advance information.

· Build relationships

· The farmer views your organisation as a credible information provider as well as an expert consultant.

· These relationships generate tremendous goodwill for the company.

· Market Prices

· All your traders have information on current rates across districts, implying that you could drive the market prices.

(Article Courtsey: Surya Tobacco Company (P) Ltd.)

Send your feedback to the editor: bizline@mos.com.np  
2002 © Mercantile Communications Pvt. Ltd. P.O. Box 876, Durbar Marg, Kathmandu, NEPAL. Tel : 977 1 220 773, 243 566 . Fax: 977 1 225 407. Reproduction in any form is prohibited without prior permission. No part of the articles which appear in the internet version on NEW BUSINESS AGE may be reproduced without the permission of Mercantile Communications Pvt. Ltd. For reprinting rights, please write to us.  Send us your feedback : contact us.