Amit Shah Orders Nafed, NCCF to Procure Directly from Farmers, Bypassing Middlemen

Union Home Minister Amit Shah has directed the National Agricultural Cooperative Marketing Federation of India (Nafed) and the National Cooperative Consumers' Federation of India (NCCF) to purchase agricultural produce directly from farmers, eliminating intermediaries. The move aims to ensure farmers receive better prices for their crops and reduce the role of middlemen in the supply chain.

Speaking at a review meeting on Wednesday, Shah emphasised the need for direct procurement to strengthen the cooperative sector and benefit farmers. He instructed both organisations to expand their procurement networks and ensure timely purchases of commodities such as pulses, oilseeds, and onions. The government has set a target of procuring 25% of the country's agricultural production through cooperatives in the coming years.

Currently, middlemen often capture a significant portion of the profits, leaving farmers with a lower share of the final market price. By buying directly, Nafed and NCCF can offer better rates and reduce price volatility. The directive aligns with the government's broader vision of doubling farmers' income and promoting cooperative-based economic models.

Nafed and NCCF have been instructed to set up procurement centres in rural areas, especially in regions with high production of specific crops. They will also use technology to track procurement and payments, ensuring transparency. The organisations will coordinate with state governments and agricultural produce market committees (APMCs) to avoid duplication of efforts.

Challenges remain, including logistics, storage, and the need for adequate infrastructure. However, the government believes that with the participation of cooperatives, these issues can be addressed. The move is seen as a step towards reforming agricultural marketing and reducing the dependence on traditional mandis.

Farmer unions have broadly welcomed the direction but have urged the government to ensure that procurement is extended to all crops and regions. Some experts caution that without proper planning, the initiative may face implementation hurdles. The government has assured that it will provide necessary financial and technical support to both organisations.

Shah also reviewed the performance of Nafed and NCCF over the past year and set targets for increasing their turnover. He stressed that cooperatives must play a pivotal role in making India self-reliant in food production and distribution.