• India
  • Feb 10
  • Sreesha V.M

What is the role of NAFED?

• The government is providing high-quality rations to millions of devotees attending the Maha Kumbh at affordable prices through National Agricultural Cooperative Marketing Federation of India (NAFED). 

• Through the NAFED, essential commodities such as flour, pulses, rice, and other necessities are being supplied at subsidised rates.

• More than 1,000 metric tonnes of rations have already been distributed, and the distribution is ongoing across the entire Maha Kumbh city and Prayagraj through 20 mobile vans.

• Subsidised rations include wheat flour and rice in 10 kg packets, while moong, masoor, and chana dal are being distributed in 1 kg packets. As soon as orders are received via mobile vans, the rations are promptly delivered.

What is NAFED?

• National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is an apex organisation of marketing cooperatives for agricultural produce in India. 

• It was established in 1958 under the Multi-State Cooperative Societies Act. 

• NAFED was founded with the goal to promote the trade of agricultural produce and forest resources across the nation.

• There are over 900 members in NAFED, represented by chief executives of apex level marketing/consumer cooperative/other national level federations, state level marketing/ tribal/commodity federations and primary cooperative marketing/processing societies.

• Agricultural farmers are the main members of NAFED.

• The activities of NAFED add to the betterment of agriculture and post harvest of the produce. 

• NAFED procures stocks directly from the farmers in regulated mandis in open auction through the cooperative infrastructure thereby providing them a ready market, fair price and preventing their exploitation at the hands of private traders.

• Also, whenever there is a glut in market due to bumper production when prices tend to crash, NAFED undertakes procurement at the Minimum Support Price (MSP) under the Price Support Scheme in case of 16 notified commodities (pulses, oilseeds, copra, dehusked coconut, cotton) thereby providing remunerative prices to farmers for their produce.

• NAFED also plays a crucial role in price stabilisation of essential commodities like onion and pulses through creation of national buffer on the direction of the government of India.

The objectives of the NAFED are: 

i) To organise, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce.

ii) Distribution of agricultural machinery, implements and other inputs.

iii) Undertake inter-state, import and export trade, wholesale or retail as the case may be.

iv) To act and assist for technical advice in agricultural production for the promotion and the working of its members, partners, associates and cooperative marketing, processing and supply societies in India.

(The author is a trainer for Civil Services aspirants.)

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