National Agricultural Cooperative Marketing Federation of India limited (NAFED), is one of the largest procurements as well as marketing agencies for agriculture commodities in India, besides promoting the welfare of farmers and safeguarding the interests of the consumers as well. Recently, the organization was in the limelight for its relentless efforts that ensured the much-needed food security for the nation during distressing times of the Covid-19 pandemic. NAFED has magnanimously donated Rs.5 Crore to PM Cares Fund and is also taking forward the Hon’ble PM Narendra Modi’s vision to double farmer’s income and enhance agricultural infrastructure through various farmer -friendly and sectoral schemes.
NAFED Highlights
An outstanding example of a 360-degree turnaround from a loss-making cooperative into a profitable entity, NAFED is proactively taking forward the food security of the nation to feed a staggering 130 crore population, the second largest in the world.
NAFED, through its strong interface with farmers of the country in Pulses and Oilseeds Sector, has a prominent role in reportedly providing for 1/3rd of India’s population, who are basically vegetarians, to get their protein needs from pluses. Besides, pulses and pulse crop residues are also major sources of high-quality livestock feed in the agrarian country. As India is witnessing a continuous burgeoning of the middle class, reciprocally the demand for pulses and other proteins has risen. India is considered as a global granary for pulses and oilseeds. According to the Food and Agriculture Organization, India reportedly meets 25 percent of global production, 27 percent of world consumption and 14 percent of imports of pulses in the world.
NAFED was established on 2nd October 1958 with the object to promote co-operative marketing of agricultural produce to benefit the farmers, who are the main members of the cooperative with a voice in matters of their sector on the General Body platform of the country’s colossal agricultural body.
Averting Food Crisis in Covid pandemic
One of the most farsighted moves by the NAFED during the pandemic lockdown which brought the nation to a standstill, was increasing procurement of Rabi crops. This averted a farmers’ crisis while ensuring sufficient food stock and supply. Speaking about NAFED’s pre-emptive role in the wake of Covid-19, the visionary go-getter who changed the image of NAFED into a dynamic one, Shri Sanjeev Kumar Chadha, MD, reportedly said, "We need to act with courage in difficult situations and do our duty. The pandemic in India occurred at a time when the crop was standing and ready for harvest. If NAFED did not take the initiative to purchase stocks of farmers in these circumstances, it would not only have been devastating for the farmers but would also have posed threat to the food security situation in the country." In April, NAFED, acting on the directions of the central government, took on one of the most gigantic tasks of supplying processed upgraded pulses to around 80 Crore people in 36 states across the country so that no one sleeps on an empty stomach.! The relentless effort continues.
NAFED has also been in the forefront fulfilling humanitarian commitment made by the Central government not only in India, but also to developed and under developed countries across the globe. Likewise, when any natural calamity occurs in the country or elsewhere in the world, the Government of India sends emergency relief materials including food grains, which NAFED diligently carries out. This achievement has instilled confidence and trust in the ability of the co-operative and its employees. During Covid, the nodal agency proved its worth once again by rising during the time of a health crisis of global proportions.
Building on stocks
NAFED reportedly benefitted 14.40 lakh farmers during Kharif season 2019-20, by purchasing 14.08 lakh MT of Oilseeds and Pulses valued at Rs.7,805.96 crore at 1992 centers across the country. Also, as on 15th July 2020, NAFED is said to have procured 29.59 lakh MT of Oilseeds and Pulses like gram, moong, masoor, mustard seeds and sunflower seeds valuing Rs.14080 crore at 3201 centers. Despite the Covid challenge, the cooperative has stepped up its purchases which are in progress in various states while stocks are under distribution to the beneficiaries.
The Government of India took pre-emptive steps to rule out any possibility of food crises or disruption of food supply chain in the face of both, short and long pandemic situations at the crucial time of Rabi harvesting and procurement season. The government gave suitable relaxations during the lockdown for transport of essential commodities and the farm sector that enabled uninterrupted Rabi harvest as well as maintain the food supply chain. This year the country had a bumper wheat production, setting a record, and the entire crop was harvested without any hassle. Private trade has also not impacted. NAFED is procuring oilseeds, pulses and wheat under PSS, the heaviest being in Rajasthan during the lockdown, that surpassed previous year’s procurement levels at several centres. Under PMGKY scheme announced by the Hon’ble PM, the cooperative is supplying pulses to all the states for onward distribution to the poor. NAFED is confident of maintaining a steady food supply chain despite the humongous magnitude of the exercise.
NAFED Revamp and way forward
Driven by a relentless passion to see the Indian agricultural sector, farmers and its stakeholder prosper, the smart working and ingenuity of its MD, Mr Sanjeev Kumar Chadha, who made history by taking on the daunting task of reviving and turning around a gigantic loss- making establishment into a profit-making cooperative and creating a grand new image to match with.
What triggered the turn-around was Mr. Chadha’s in-depth study of the NAFED ecosystem, including reasons for its decline along with a detailed SWOT analysis. He implemented with alacrity a three-fold strategy for bringing NAFED back on its feet. This began with aggressive pursuance with the government for allocating a revival package. It was followed by boosting the sagging morale of the employees and lastly launching aggressive business strategies for a building a robust income generation module, which led to the incredible turn-around of NAFED worthy of reference as a case history of revival in business schools. One who believes in making things happen and that too grandly, Mr. Chadha is of the opinion that the happiness and motivation quotient of the employees decides the image of an establishment. The profound change in the working and fiscal turnaround of NAFED has augured well for thousands of its employees and most importantly lakhs of farmers whom the cooperative serves.
As the nodal agency for implementation of short-term price stabilization measures, NAFED has reportedly rolled out the “Operations Greens” launched by the Union government to address price volatility in TOP (Tomato, Onion and Potato) crops. Organic Farming projects allocated to 100 clusters in the states of Uttarakhand and Bihar under PKVY scheme of the centre, NAFED is working on this environmental and health-friendly initiative. Besides it would soon set up 100 Bio Diesel plants across the country.
Much ground has been covered in the pulses sector to achieve for the first time, near self-sufficiency in pulses production. With the aim to improve farmers’ income with increased productivity of dairy sector, NAFED is reportedly implementing the NADCP programme supported by government funding of Rs. 12652 crores for vaccination of livestock across the country that would eradicate FMD and Brucellosis in the livestock. Also, creation of additional post-harvest infrastructure at point of production is envisaged to improve the shelf-life of produce, prevent distress sale by farmers and generate employment making the rural economy prosperous. NAFED is all geared up to sincerely aim its endeavours at providing remunerative prices to the farmers for their produce that would benefit and raise their living standard.
