The Hindu Business Line : ITC chief for lifting curbs on commodity movement

The eChoupal network has now become a hub of activity where more than 65 companies buy and sell products and efforts are on to add other products. – Mr Y.C. Deveshwar

Our Bureau

Hyderabad, Nov. 7 The ITC Chairman, Mr Y.C. Deveshwar, on Friday suggested changes in the regulatory environment that will distinguish between genuine farm produce buyers and commodity “hoarders”.

Speaking at Next 800 Million Opportunity hosted by TiE at the ISB, Mr Deveshwar said that certain restrictions on buying farm produce and stocking them are causing concern at the grassroots level for the 6,500-strong eChoupal network in the country.

‘Genuine players hit’

In response to curbing inflation, the Government had imposed ban on futures and brought about restrictions on movement and storage of commodities. This has created uncertainties for the farmers and delivered a blow to eChoupals. Therefore, this requires immediate attention of the Government so that a genuine buyer, like ITC, and several others at the eChoupal are not affected, he felt.

A move that allows purchase of commodities and also stock them, he felt, will help restore confidence in the farm community which looks upon eChoupal’s as a single-point interface for all its farm needs.

ITC plans

Mr Deveshwar said it is not easy to address a large and diverse set of people located in the rural areas and market products ensuring adequate profitability. Mentioning about ITC plans, he said that the eChoupal network has now become a hub of activity where more than 65 companies buy and sell products. Efforts are on to add other products while ensuring that the insurance products and services offered are stabilised.

“Potentially, down the line, we could also offer micro finance services to rural population. This could be by involving self-help groups and NGOs,” he said.

Long-term players

Referring to short-term goals of achieving profitability versus long-term investments, Mr Deveshwar said the current accounting policies need to recognise such investments.

“All the investments we are making in a nationwide network such as eChoupals and also in plantations are not short term. Therefore, such investments require to be recognised so that shareholders understand the company’s long-term vision and not merely look at short-term quarter-on-quarter comparisons. We expect other enterprises to recognise such issues and resolve conflict between short- and long-term orientation,” he said.

Related Stories:
Rumours create panic in commodity markets

More Stories on : Events | Commodities | I T C Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page