NAFED

Also called: National Agricultural Cooperative Marketing Federation of India · Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT

Meaning

NAFED (National Agricultural Cooperative Marketing Federation of India) is the top national cooperative for selling farm produce. It was set up in 1958. Along with state marketing federations, it buys pulses and oilseeds for the government. Under the Price Support Scheme (PSS) of PM-AASHA (2018), NAFED and NCCF buy pulses, oilseeds and copra at the minimum support price (MSP), which is the price the government promises to pay. They step in when market prices fall below MSP. NAFED also runs e-Samriddhi, a portal where farmers register for this buying with their Aadhaar, land records and bank details. Payment then goes straight to their bank accounts.

Example

Suppose mustard prices in a Rajasthan mandi fall below the MSP at harvest. If the State asks for PSS, NAFED buys Fair Average Quality (FAQ) mustard, meaning produce of normal, acceptable quality. It buys only from farmers who registered in advance on e-Samriddhi. Central buying under PSS is capped at 25% of the crop's national production in that season. Since 2025-26, farmers have to confirm their identity with a fingerprint or face scan when they sell.

Don't confuse with

• FCI (Food Corporation of India): a government corporation, not a cooperative. It buys cereals such as wheat and rice at MSP, and its buying is open-ended (it buys all grain offered that meets quality norms). NAFED buys pulses, oilseeds and copra, and it buys only when a State asks and only up to the cap.
• NCCF: the other agency that does PSS buying. Its portal is e-Samyukti, not e-Samriddhi.

Read more

• Agricultural Marketing, MSP, Buffer Stocks and PDS