Agriculture is the backbone of the economy. However, in the past, farmers could not obtain fair pricing for their harvested products due to the significant involvement of middlemen and a lack of infrastructure. The government took several steps to address various challenges farmers face, including NAFED.
What is NAFED?
NAFED, or the National Agricultural Cooperative Marketing Federation of India Ltd., was established to assist farmers through cooperative marketing of their agricultural products. NAFED was founded in 1958 per the Multi-State Co-operative Societies Act. Currently, the organization is the core element of “Operations Greens,” which implements price stabilization measures to assist farmers in increasing their income.
NAFED further works with the Food Corporation of India (FCI) to purchase pulses, oilseeds, and other commodities under the Price Support Scheme (PSS). Farmers are the primary members of this entity and are in charge of establishing a General Body.
Role and Objectives of NAFED
- Providing technical assistance to farmers to improve agricultural production.
- It aids in the organisation, promotion, and marketing of forest and agricultural produce. NAFED also assists in providing storage facilities to prevent the deterioration of perishable produce.
- It aims to smooth the farming chain by purchasing, selling, and supply of agricultural products. It also assists farmers in meeting their processing needs, such as fertiliser, manure, and seeds.
- NAFED intends to expand storage and godown facilities by building warehouses in accordance with the provisions of the Warehousing Act.
- NAFED serves as a cooperative or government intermediary for purchasing, storing, and selling animal husbandry, horticultural, and agricultural produce.
- To provide commodities with insurance coverage to protect financially in the event of a loss.
- To provide funding assistance to various cooperative institutions and the members of NAFED.
- It processes and scientifically treats agricultural products.
- It trains cooperative society employees about processing, supply, and marketing.
Services offered by NAFED
- View tenders issued by NAFED
- Grievance Redressal Cell for farmers
- Information on market brokers
- E-Bulletins on seed division, pulses procurement, and public relations
- Annual Report
What are the key businesses offered by NAFED?
1. Internal Trade
- Joint venture
- Outright business with NAFED members
- Price Support Scheme implementation
- Agency and Consignment business
- Government’s Market Intervention Scheme
- Supply of essentials like onions, eggs, potatoes, etc.
2. International Trade
The government provides various agricultural products and household items to various nations on humanitarian grounds through NAFED. It also provides goods for trading purposes.
NAFED has also been nominated to be classified as a Central Seed Production Agency. This is because it both distributes and produces certified seeds.
4. Industrial activities
NAFED has the following units that aid in industrial activities.
- Fertiliser division in Indore
- Cold storage in Delhi
- Warehousing and Processing unit in Vashi
- Cold storage and pre-cooling unit in Nasik
5. Consumer Marketing
NAFED markets daily consumable agricultural products at lower prices.
- It sells tea, pulses, and spices, among other things.
- NAFED blends and packages self-produced tea in the Guwahati region.
- It provides groceries to ministries, government agencies, schools, and hostels.
NAFED also has partnerships with e-commerce platforms such as Amazon to provide online retail services.
6. Organic farming
NAFED promotes organic farming by assisting cultivators in obtaining a higher market price.
The NAFED federation was formed to assist small farmers and agricultural societies throughout India. It also helps with product distribution, marketing, and promotion. Another function they perform is standardization and packaging.