Question : E-CHAUPALS



(a): whether MNCs have started marketing in the rural areas through e-chaupals;

(b): if so, the total approximate sales during the last year;

(c): whether this poses any challenge to the village industries; and

(d): if so, the plans of the Government to protect the village and rural industries?

Answer given by the minister

MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES ( SHRI MAHABIR PRASAD )

(a): According to available information, e-chaupal is a project of the ITC Limited, an Indian company, which offers farmers the following facilities :

(i) information dissemination through the internet, e.g., best farming practices, weather conditions, prices of various crops, etc.;

(ii) buying farmers` produce at ITC buying centres approved under the respective States` Agriculture Produce Market Committee Rules; and



(iii) sale of quality farm inputs and other consumer goods to farmers.

(b): The total sales during 2004 through the e-chaupals are estimated at Rs. 12 crore.

(c): The data on the sale of village industries products (Rs. 10988.17 crore approximately during 2003-04) of units promoted with Government assistance through the Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Boards (KVIBs) and institutions registered with the KVIC and KVIBs, do not indicate that these products face marketing challenge on account of marketing of farm products, etc., through e-chaupals.

(d): The Government assists village industry (VI) units to participate in exhibitions, brand promotion, quality assurance and technology upgradation and also in modernization of sales outlets, etc., of the registered VI institutions. In addition, a Confederation for Promotion of Khadi and Village Industries has been set up in 2003 to strengthen the marketing network of Khadi and village industry products. The Product Development Design Intervention and Packaging (PRODIP) Scheme of the KVIC has been started during 2003 in order to assist design and packaging improvement of khadi and village industry products.