NAFED (Syllabus: GS Paper 3 – Economy)
Context: Recently, the Union Commerce and Industry Minister proposed the diversification of crops involving cooperative societies like NAFED entering into five-year contracts with farmers, ensuring purchases at MSP without quantity limitations. This approach would also conserve Punjab’s water resources and safeguard its soil.
National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)
- About: NAFED is an apex organization of marketing cooperatives for agricultural produce in India.
- Establishment and Purpose: It was founded on 2 October 1958 to promote the trade of agricultural produce and forest resources across the nation.
- Legal Status: NAFED is registered under the Multi-State Co-operative Societies Act.
- Size and Scope: NAFED is now one of the largest procurement as well as marketing agencies for agricultural products in India.
- Headquarters and Regional Presence: With its headquarters in New Delhi, NAFED has four regional offices at Delhi, Mumbai, Chennai, and Kolkata, apart from 28 zonal offices in capitals of states and important cities.
- Functions of the NAFED
oFacilitating Marketing and Trading Activities: The cooperative institution aims to facilitate, coordinate, and promote the marketing and trading activities of its partners and associates.
oUndertaking Purchase, Sale, and Supply: Another objective is to undertake the purchase, sale, and supply of various requisites crucial for agriculture, marketing, and processing.
oFunctioning as a Warehouseman: The institution also operates as a warehouseman under the Warehousing Act. It has the authority to own and construct its own godowns and cold storage, thereby facilitating storage and preservation of goods.
