Direct Procurement Mandate
Union Home Minister and Minister of Cooperation Amit Shah has directed the National Agricultural Cooperative Marketing Federation of India (Nafed) and the National Cooperative Consumers' Federation (NCCF) to procure pulses and oilseeds directly from farmers, bypassing intermediaries. The directive aims to ensure farmers receive full payment for their produce without middlemen deductions.
Two-Year Deadline
Shah set a two-year deadline for the two cooperatives to establish a system enabling farmers to sell their produce directly and receive payments seamlessly. According to an official statement, the minister emphasized the need for a transparent and efficient procurement mechanism that benefits farmers directly.
Impact on Farmers
The move is expected to enhance farmers' income by eliminating layers of intermediaries who often take a cut of the profits. Direct procurement will also ensure timely payments and reduce post-harvest losses. The cooperatives have been asked to expand their reach in major producing states and set up procurement centers at the village level.
Government's Cooperative Vision
This directive aligns with the government's push to strengthen the cooperative sector and achieve the goal of doubling farmers' income. Shah stated that cooperatives like Nafed and NCCF should play a pivotal role in transforming the agricultural marketing landscape. He urged them to leverage technology for better price discovery and logistics.
Historical Context
Nafed and NCCF have traditionally procured agricultural commodities at minimum support prices (MSP) but often through state agencies. The new directive simplifies the process by dealing directly with farmer groups and cooperatives. This is part of broader reforms to make farming more profitable and sustainable.
