Presentation on NAFED By Kailash Jyani Addl. Managing Director

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Presentation on NAFEDBy Kailash JyaniAddl.
Managing Director

• Kharif Conference
• Ministry of Agriculture
• New Delhi
• 23-03-2005

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Background

• Overall Economic Growth Is Dependent Upon
  Agricultural Growth Particularly in India
• Agriculture Contributes Around 22 to Our GDP
• Its Effective Contribution to the National
  Economy Is Significantly Greater on Account of
  Its Backward and Forward Linkages With Other
  Sectors
• Indian Farmers Mostly Marginal and Small With
  Average Land Holding Less Than 1.5 Ha

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Requirements

• Market for Produce
• Inputs
• Extension
• Credit

• Should Be Readily Available
• Should Improve Productivity
• Should Efficiently Transfer Technical Know How
• Should Be Cheaper Flexible

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• Nafed is a National Level Apex Cooperative
  Marketing Federation with the Objective To
  Organize, Promote and Develop Cooperative
  Marketing, Processing and Storage of Agricultural
  Produce, Distribution of Inputs and Domestic and
  International Trading of Agricultural Commodities.

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Main Activities of Nafed

• Implementation of PSS of GOI
• Marketing of Agricultural Inputs
• Contract Farming
• Marketing of Agricultural Produce
• Implementation of MIS of GOI
• Consumer Marketing
• Industrial Activities
• Warehousing
• Research Development

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Price Support Scheme (PSS)

• Nafed Is The Central Nodal Agency for Procurement
  of Oilseeds, Pulses Cotton
• Price Support Operations Is Implemented Through
  Two -Tier System
• GOI Declares Minimum Support Price (MSP)
• State-wise Tentative Targets Arrived at
• Procurement Commences Whenever Prices Fall Below
  MSP
• Procurement Undertaken Without Any Quantitative
  Ceiling

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Strengths of Nafed as Nodal Agency

• Three-tier Cooperative Network Ensures Maximum
  Coverage Under PSS Including AN Islands
  Lakshadweep
• Manpower Having Multi-Commodity Expertise
  Ensures Efficient Handling Irrespective of
  Quantum
• Commercial Orientation Ensures Maximisation of
  Realisation

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Commodities Covered MSP(2005)
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Price Support Operations-Quantum Jump

• PSS Commenced Since 1976-77
• Limited Procurement Till 1999. Value- Rs.380
  Crores
• From Kharif-99 onwards Procured 26.48 Lakh MTs of
  Oilseeds and Pulses Value - Rs.3863 Crores
• Sizeable Procurement Due To
• Easy Trend in International Prices
• Higher Production
• Higher MSP To Induce Crop Diversification

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Procurement under Price Support Operations
(During Kharif 1999-Kharif 04)
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Reasons Why Entire Production is Not Procured
under PSS

• Entire Quantity of Marketable Surplus Does Not
  Match FAQ
• Resource Rich Farmers Have Better
  Stockholding/risk Taking Capacity
• Interlocking of Credit and Produce Markets
• Since PSS Not Required Regularly, Farmers Having
  Strong Bond With Arhatias Offer Stocks to
  Arhatias Only
• Payment of Commission to Katcha Arhatias Not
  Allowed Like FCI
• Small Lots Sold to Village Level Aggregator
• Prices Stabilise Above MSP Owing to Procurement
  Under the Scheme

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Scenario for PSS During Rabi 05

• Inter-state Kharif Conference Organised by Nafed
  on 07-02-05 for Crop Assessment
• Prices Ruling Below MSP of Oilseeds, Cotton
  Pulses
• Procurement of Oilseeds (Mustardseed,
  Safflowerseed, Sunflowerseed) Already Commenced
• Procurement of Pulses Cotton Also Commenced

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Likely Procurement of Oilseeds During Rabi 05
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Likely Procurement of Pulses During Rabi 05
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Procurement Position of Oilseeds as on 21-3-05
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Procurement Position of Pulses as on 21-3-05
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Procurement Position of Cotton As on 21-3-05
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Request to the State Govts. For Successful
Implementation of PSS

• Publicity About MSP and Purchase Centres
• Awareness About Quality Parameters Through
  Agricultural Extension Officers
• Impress Upon Farmers Not to Resort to Distress
  Sale Below MSP As No Cut-off Date for Procurement
• Ensure Farmer Identification to Ensure That
  Benefit Goes to Farmers Only

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Seed Marketing by Nafed

• Nafed Undertaking Seed Production Under Contract
  Farming Mode in AP, MP, Uttranchal, Rajasthan and
  Gujarat
• Also Marketing Seeds of Other Govt. Agencies Like
  SFCI, USTDC, Mahabeej and Private Players
• Planning to Set up Seed Processing and Grading
  Plant at Dewas (MP)
• Seeds Presently Available for Kharif 05 Are
  Wheat, Soyabean, Groundnut, Toor, Moong, Urad
• Nafed May Also Be Covered Under ISOPOM

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Contract Farming

• Integrated Cultivation Programme Under Contract
  Farming Benefits Farmers
• Nafed Has Taken Initiative in Tamil Nadu for
  Contract Farming
• 32000 Farmers Registered
• 28000 Hectares Area
• Nafed to Buy Pulses Oilseeds to the Tune of
  5000 Mts Each and Maize 10000 Mts

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Mechanism for Contract Farming

• MOU with Commissionerate of Agriculture (TN)
• Pre-harvest Extension
• Availability of Credit
• Providing Quality Inputs
• Transfer of Technical Know How Through Agri.
  University
• Centres Identified for Procurement
• Procurement at Weighted Average Rate of Last Week
  or MSP

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Thank You