Leveraging ICTs for Agricultural Development: A case study of E-choupals of ITC

Abstract

In the emerging environment of reduced role of the state in agricultural marketing and input supply and the increasing space being provided to the private sector, it becomes imperative to explore the role of the corporate agribusinesses and information technology in building better linkages with farmers. There have been a few experiments in this regard in India in the recent past. This article examines one such case of E-choupals of ITC Ltd. in order to examine the role of information technology in agricultural development. After detailing the design and structure of the project, it goes on to examine its performance. It is found that the project has been able to re-intermediate the local agents instead of dis-intermediating them which would have been more difficult. The project has benefited both, the farmers and the company, in reducing transactions costs and realising better net returns from their operations as it could reduce information asymmetries.