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Current AffairsEconomy

Amit Shah directs NAFED, NCCF to bypass middlemen, buy pulses and oilseeds directly from farmers

Tuesday, 23 June 20266 min read1,026 words17

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In this article

ContextBackground & Historical EvolutionKey Points & FactsMulti-Dimensional AnalysisWay Forward

Context

Union Cooperation Minister Amit Shah on June 23, 2026, directed the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers' Federation (NCCF) to procure pulses and oilseeds directly from farmers, eliminating middlemen, with a two-year deadline. The directive was announced during the launch of four NAFED initiatives, including a digital auctioning platform Nafex.in, at an event attended by Agriculture Minister Shivraj Singh Chouhan, Minister of State Krishan Pal Gurjar, and senior officials. Shah emphasized that while production of pulses and oilseeds has increased, self-sufficiency remains elusive because minimum support prices (MSP) are not reaching growers. India currently imports 6–7 million tonnes of pulses and 15–16 million tonnes of edible oils annually to meet domestic demand.

Background & Historical Evolution

The directive builds on India's long-standing efforts to boost agricultural self-sufficiency and strengthen cooperative marketing. NAFED, established in 1958, and NCCF, established in 1965, were created to promote cooperative marketing and ensure fair prices for farmers. Historically, agricultural markets in India were regulated under the APMC Acts, which created a network of middlemen and commission agents, often eroding farmers' share of consumer prices. The government introduced MSP in the 1960s for major crops to guarantee minimum prices, but implementation has been uneven, especially for pulses and oilseeds. In 2013, NAFED faced a severe financial crisis and required government intervention to survive, highlighting inefficiencies. The creation of a separate Ministry of Cooperation in 2021 signaled a renewed focus on the cooperative sector. Recent efforts include the formation of Farmer Producer Organizations (FPOs) and the e-NAM platform for digital trading. However, import dependence for pulses and oilseeds has persisted due to insufficient domestic production and market inefficiencies. The current directive aims to bypass intermediaries through direct procurement using digital platforms, ensuring that MSP benefits reach farmers and reducing import reliance.

Key Points & Facts

  • Union Cooperation Minister Amit Shah directed NAFED and NCCF to procure pulses and oilseeds directly from farmers, bypassing middlemen, with a two-year deadline.
  • India currently imports 6–7 million tonnes of pulses and 15–16 million tonnes of edible oils annually to bridge domestic shortfalls.
  • NAFED's annual turnover rose from ₹500 crore to ₹30,000 crore in FY25, with reach extending to 76 lakh farmers.
  • Shah set a target for NAFED to achieve ₹50,000 crore turnover.
  • Four NAFED initiatives were launched: (1) Nafex.in – a digital auctioning platform for transparent auctioning of procured pulses and oilseeds; (2) Drishti – a digital inventory management and ERP platform; (3) a real-time data analysis tool; and (4) the NAFED Kalyan Fund to support farmers' children in their careers.
  • NAFED previously used private platforms – mjunction, NEML, and etech – for auctioning roughly 20 lakh tonnes of these commodities annually.
  • Agriculture Minister Shivraj Singh Chouhan noted that the government is already procuring three varieties of pulses at remunerative prices.
  • NCCF plans to launch a similar auctioning platform embedded within its existing e-Samridhi platform.
  • The event was attended by Minister of State for Cooperation Krishan Pal Gurjar, NAFED Chairman Jethabhai Ahir, and Cooperation Secretary Ashish Kumar Bhutani.
  • NAFED Managing Director Deepak Aggarwal stated that the three technology platforms are interlinked and will boost transparency and competitiveness.

Multi-Dimensional Analysis

Political & Constitutional Dimensions: The directive aligns with the government's emphasis on cooperative federalism and the role of cooperatives in rural development. The Ministry of Cooperation, created in 2021, has prioritized strengthening farmer cooperatives. Proponents argue that bypassing middlemen empowers farmers and ensures MSP effectively reaches them. Critics, however, may question the capacity of cooperatives and potential political interference. Constitutionally, agriculture is a state subject (Entry 14 of State List), while cooperatives fall under the Union List (Entry 43 via 97th Constitutional Amendment). This requires state cooperation for effective implementation.

Economic & Financial Impact: Direct procurement can reduce the import bill for pulses and oilseeds, saving foreign exchange. The rise in NAFED turnover from ₹500 crore to ₹30,000 crore indicates growing financial capacity. The target of ₹50,000 crore suggests further expansion. However, critics point to the fiscal burden of MSP operations and potential inefficiencies in cooperative management. Direct procurement may also raise prices for consumers if subsidies are reduced.

Social Dimensions: The initiative primarily benefits farmers who are members of cooperatives or sell through NAFED/NCCF. It aims to ensure that MSP reaches growers, improving income stability. The NAFED Kalyan Fund supports farmers' children, addressing social welfare. However, non-members and those in states with weak cooperative infrastructure may be excluded. Small and marginal farmers could gain if access is equitable.

Governance & Administrative Aspects: Implementation challenges include scaling up procurement infrastructure, training staff, and integrating digital platforms across states. The launch of Nafex.in, Drishti, and real-time analysis tools aims to enhance transparency and stock management. The two-year deadline requires rapid capacity building. Federalism implications arise as agriculture is a state subject; states must cooperate to align their procurement policies. The government's push for cooperatives also intersects with the model bylaws for Primary Agricultural Credit Societies (PACS).

International Perspective: India's heavy import dependence on pulses (from Myanmar, Canada, Australia) and edible oils (from Indonesia, Malaysia) affects trade balances and food security. Self-sufficiency reduces vulnerability to price volatility and geopolitical pressures. International best practices include Ethiopia's use of commodity exchanges and Brazil's cooperative model for soybeans. Success would enhance India's position in global agricultural markets.

Way Forward

Short-term measures: Implement the direct procurement directive within two years by expanding NAFED and NCCF procurement centres in major producing regions. Strengthen the digital platforms (Nafex.in, Drishti) and integrate with e-NAM to ensure seamless auctions. Provide training to cooperative staff on technology use.

Medium-term reforms: Increase MSP coverage for more varieties of pulses and oilseeds, as already initiated for three varieties. Enhance warehouse infrastructure and cold storage to reduce post-harvest losses. Promote Farmer Producer Organizations (FPOs) to aggregate produce and strengthen bargaining power. Consider recommendations of the Swaminathan Commission on ensuring MSP at C2+50% cost and linking procurement to institutional mechanisms.

Long-term vision: Achieve self-sufficiency in pulses and oilseeds through research in high-yield varieties, irrigation expansion, and crop diversification. Strengthen the cooperative ecosystem by adopting the National Cooperative Policy 2002 recommendations, including democratization and professional management. Explore international partnerships for technology transfer in oil palm cultivation to reduce edible oil imports.

What can be asked in exam?

  • •Prelims angle: NAFED was established in 1958 as a cooperative marketing federation.
  • •Prelims angle: NCCF was established in 1965 to handle consumer goods.
  • •Prelims angle: India imports 6-7 million tonnes of pulses annually.
  • •Mains angle: Examine the role of cooperatives in ensuring food security and reducing import dependence. Discuss with reference to recent government initiatives. (GS-III, Agriculture)
  • •Mains angle: Analyze the impact of middlemen on farmer incomes and suggest measures to strengthen direct procurement. (GS-III, Agriculture)

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Genetic engineering, a revolutionary branch of biotechnology, continues to evolve rapidly, transforming the way we approach medicine, agriculture and various scientific endeavours. Recent developments in this field highlight both the immense potential and ethical considerations that come with the power to manipulate DNA. In the medical realm, gene editing technologies like CRISPR-Cas9 have gained prominence. These tools offer unprecedented precision in modifying genes, holding promise for treating genetic disorders. In a groundbreaking clinical trial, researchers successfully used gene editing to treat sickle cell anaemia. The patient’s own modified cells were reintroduced into their body, resulting in reduced symptoms and an improved quality of life. In agriculture, genetic engineering is driving advancements in crop production and food security. The development of Genetically Modified (GM) crops has enabled plants to resist pests, withstand harsh climates and improve nutritional content. For instance, GM rice has been biofortified to contain higher levels of essential vitamins, potentially combating malnutrition in regions where rice is a staple food. However, these advancements also raise ethical concerns. The potential for creating “designer babies” through gene editing has sparked debates about the boundaries of genetic manipulation. The question of whether it’s ethical to alter human DNA to enhance physical or cognitive traits continues to challenge bioethicists, policymakers and society at large. Data indicates the exponential growth of genetic engineering research. In the past decade, the number of scientific publications related to CRISPR technology has multiplied significantly. In 2010, there were approximately 150 CRISPR-related publications; by 2020, that number had soared to over 9,000. This surge demonstrates the profound impact of genetic engineering on the scientific community. As we navigate this brave new world of genetic engineering, striking a balance between innovation and ethical considerations remains paramount. The potential to cure genetic diseases, enhance food security and make leaps in scientific understanding is immense. However, careful consideration and collaboration are necessary to ensure that the benefits are realized while addressing the ethical complexities that accompany these technological breakthroughs.

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Science · 2022

Direction / Passage

Genetic engineering, a revolutionary branch of biotechnology, continues to evolve rapidly, transforming the way we approach medicine, agriculture and various scientific endeavours. Recent developments in this field highlight both the immense potential and ethical considerations that come with the power to manipulate DNA. In the medical realm, gene editing technologies like CRISPR-Cas9 have gained prominence. These tools offer unprecedented precision in modifying genes, holding promise for treating genetic disorders. In a groundbreaking clinical trial, researchers successfully used gene editing to treat sickle cell anaemia. The patient’s own modified cells were reintroduced into their body, resulting in reduced symptoms and an improved quality of life. In agriculture, genetic engineering is driving advancements in crop production and food security. The development of Genetically Modified (GM) crops has enabled plants to resist pests, withstand harsh climates and improve nutritional content. For instance, GM rice has been biofortified to contain higher levels of essential vitamins, potentially combating malnutrition in regions where rice is a staple food. However, these advancements also raise ethical concerns. The potential for creating “designer babies” through gene editing has sparked debates about the boundaries of genetic manipulation. The question of whether it’s ethical to alter human DNA to enhance physical or cognitive traits continues to challenge bioethicists, policymakers and society at large. Data indicates the exponential growth of genetic engineering research. In the past decade, the number of scientific publications related to CRISPR technology has multiplied significantly. In 2010, there were approximately 150 CRISPR-related publications; by 2020, that number had soared to over 9,000. This surge demonstrates the profound impact of genetic engineering on the scientific community. As we navigate this brave new world of genetic engineering, striking a balance between innovation and ethical considerations remains paramount. The potential to cure genetic diseases, enhance food security and make leaps in scientific understanding is immense. However, careful consideration and collaboration are necessary to ensure that the benefits are realized while addressing the ethical complexities that accompany these technological breakthroughs.

Which gene editing technology has gained prominence recently?

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