Shah Directs Nafed, NCCF to Bypass Middlemen, Buy Pulses and Oilseeds Directly From Farmers

Union Cooperation Minister Amit Shah on Tuesday directed National Agricultural Cooperative Marketing Federation (Nafed) and National Cooperative Consumers' Federation (NCCF) to procure pulses and oilseeds directly from farmers, cutting out middlemen, as India looks to reduce its dependence on imports of the two commodities.

Speaking at the launch of four Nafed initiatives, including a digital auctioning platform Nafex.in, Shah said output of pulses and oilseeds had risen in recent years but self-sufficiency had remained elusive because minimum support prices were not reaching growers.

"There is a need to get rid of middlemen. Time has come for both Nafed and NCCF to procure pulses and oilseeds directly from farmers to ensure benefits reach them," he said.

Shah set a two-year deadline, saying farmers would be able to sell directly to the two cooperatives and receive payment without intermediaries.

India currently imports 6-7 million tonnes of pulses and 15-16 million tonnes of edible oils annually to bridge domestic shortfalls.

Lauding Nafed's recovery, Shah recalled the cooperative had hit a severe financial crisis in 2013 and needed government intervention to survive.

Its annual turnover has since climbed from ₹500 crore to ₹30,000 crore in FY25, with reach extending to 76 lakh farmers.

Shah called on Nafed to now target ₹50,000 crore in turnover. Agriculture Minister Shivraj Singh Chouhan echoed the call for self-reliance in pulses and oilseeds, noting that the government was already procuring three varieties of pulses at remunerative prices.

Of the four initiatives launched, Nafex.in will enable transparent auctioning of procured pulses and oilseeds. Nafed was previously using private platforms – mjunction, NEML, and etech – for auctioning roughly 20 lakh tonnes of these commodities annually.

Drishti, a digital inventory management and ERP platform, along with a real-time data analysis tool, will ensure transparent stock management.

The fourth initiative, the Nafed Kalyan Fund, will support the children of farmers in their careers.

Speaking separately to PTI, Nafed Managing Director Deepak Aggarwal said the three technology platforms are interlinked and will boost transparency and competitiveness.

NCCF Managing Director Anice Joseph Chandra said NCCF plans to launch a similar auctioning platform, to be embedded within its existing e-Samridhi platform.

Minister of State for Cooperation Krishan Pal Gurjar, Nafed Chairman Jethabhai Ahir, and Cooperation Secretary Ashish Kumar Bhutani were present at the event.