Lecture No.
30
National Agricultural Cooperative Marketing Federation of India (NAFED)
The National Agricultural Cooperative Marketing Federation Of India (NAFED) is an
apex organisation of marketing cooperatives for agricultural produce. NAFED is registered under
the Multi – state cooperative societies Act. NAFED was established in October 1958. Its main
objective is to promote co-operative marketing of produce which would benefit farmers. It is
now one of the largest procurement as well as marketing agencies for agricultural products in
India. It works under the Ministry of Agriculture.
Background of NAFED
NAFED was established on the auspicious day of Gandhi Jayanti on 2nd October 1958.
NAFED's early years were marked by rapid growth and expansion. It played a pivotal role in
organizing and strengthening the cooperative marketing system in India. NAFED's price
stabilization interventions have been instrumental in protecting farmers' interests. It ensures fair
prices for their produce. NAFED undertakes market interventions to stabilize prices when they
fall below the minimum support price (MSP) set by the government.
Over the years, NAFED's role has expanded beyond marketing to encompass a wider
range of activities. This includes export promotion, infrastructure development, and capacity
building.
Today, NAFED remains a leading player in the Indian agricultural sector. NAFED's
efforts are aligned with the government's vision of doubling farmers' income by 2022.
Objectives of NAFED
The Objectives of NAFED are as follows:
o To promote, develop and organise marketing and storage of agricultural and forest
produce.
o In agricultural production, assist for technical advice.
o In the agricultural sector, coordination, facilitation and promotion of marketing and
trading activities of partners associates.
o It facilitates the construction of warehouses according to the Warehousing Act by
constructing godowns and storage facilities.
o Undertaking sale and supply of agricultural, purchase, marketing and processing
requirements like manure, fertiliser, seeds etc.
o It also provides insurance coverage to cover any accident that may occur.
o Under the NAFED, organise consultancy work for the benefit of allied institutions.
o NAFED acts as the agent of any government or cooperative for the purchase, sale and
storage of agricultural, horticultural and produce of animal husbandry.
o Marketing research and dissemination of market intelligence is undertaken.
o To undertake business collaboration with cooperative institutions and subscribe to the
share capital, private sector enterprises and public joint, when considered necessary for
fulfilling the objectives of NAFED.
Functions of NAFED
The Function of the NAFED are given as follows:
o Act as an insurance agent for agricultural produce.
o To collaborate with the international agencies for the development of the cooperative
market in the produce of agriculture.
o Act as an agent to the government in procurement.
o Facilitate the trading and marketing of agricultural commodities.
o Provide warehousing facilities for the produce of agriculture generated.
Various Schemes Implemented by NAFED
Here's a summary of some of the key schemes implemented by NAFED:
I. Price Stabilization Fund (PSF) Scheme
The Price Stabilization Fund (PSF) Scheme is a crucial intervention to protect farmers'
interests. It is to ensure fair prices for their produce. Under this scheme, NAFED procures
agricultural commodities when market prices fall below the Minimum Support Price (MSP) set
by the government. This procurement acts as a price support mechanism. It prevents prices from
crashing and safeguarding farmers' incomes.
II. Market Development Scheme
The Market Development Scheme aims to strengthen the market linkages for farmers and
cooperatives. NAFED provides financial help to cooperatives for establishing and strengthening
marketing infrastructure. This infrastructure enhances the ability of cooperatives to effectively
market agricultural produce.
III. National Programme for Organic Production (NPOP)
NAFED plays a pivotal role in promoting organic farming practices in India through the
National Programme for Organic Production (NPOP). NAFED provides financial help to
cooperatives for organic certification and marketing of organic products. This support
encourages farmers to adopt sustainable organic farming practices. It helps them access better
markets for their organic produce.
IV. Formation and Promotion of Farmer Producer Organizations (FPOs)
NAFED actively supports the formation and promotion of Farmer Producer Organizations
(FPOs). This empowers farmers and enhances their collective bargaining power. NAFED
provides financial and technical help to FPOs for capacity building, infrastructure development,
and market linkages. This support enables FPOs to effectively manage their produce. It helps
them gain a stronger foothold in the market.
V. Honey Farmer Producer Organisation Programme
NAFED's Honey Farmer Producer Organisation Programme focuses on promoting
beekeeping and honey production among farmers. NAFED provides financial help to
cooperatives for establishing honey processing units and marketing honey products. This
initiative aims to improve the livelihoods of beekeepers. It enhances honey production and
strengthens the honey value chain.
