1. NAFED was established in 1958 to facilitate marketing of agricultural commodities through cooperatives. It undertakes domestic and international trade, processing, and distribution of food grains, pulses, oilseeds and other farm products on behalf of the Government of India and cooperatives. 2. NAFED's key activities include procurement, storage and distribution of food grains under the public distribution system, import and export of agricultural commodities, financing farmers, and supplying agricultural inputs like seeds, fertilizers and machinery. 3. It has over 800 member cooperative institutions across India and engages in outright trading, contract farming, warehouse based financing and retail marketing to benefit farmers and consumers.

1. Agricultural Procurement and Processing ManagementProcurement : FCI on behalf of GoI and SGs andPrice Support operations for food grains and cereals:Protect the interest of growers

2. Avoid distress sales

3. Ensure pre determined procurement/support price

4. Stocking of food grains to feed the population/ Assured supply of food grains at reasonable prices

5. Arrest the price rise/ seasonal price fluctuations

6. Public control over marketable surplusOperational stock and buffer stock

7. ProcurementAdvantages of buffer stockStabilization of prices: countering speculators/ hoardersSafe guard producers during surplus seasonsStability to the country’s food economyHow?Maintained in two ways: Internal PurchasesImports

8. Procurement- DefinedSecuring food grains by government/ its agencies to meet the requirements for the supply to consumers through fair price shops and to build a buffer stock to meet emergency needs.Procurement price / Support priceMethods of ProcurementLevy on producersLevy on Traders and millers Requirements of the central pool

9. Domestic Consumption

10. Marketable SurplusMethods of ProcurementPre-emptive Purchases: Govt. Purchases food grain in the open market. Assumes first right at a price settled between the trader and producerOpen Market Purchases: No price is announced before. Govt./ Agency enter market and compete with other traders.Monopoly Procurement:

11. CACPAgricultural Prices Commission- 1965CACP- 1985- Recc. By Foodgrain Prices Committee (L.K Jha)Advise the GoI on the price policy of major agricultural commoditiesEvolve a balanced and integrated price structure to protect the interests of Growers and BuyersFactors Considered while recommending prices:Need for incentives to farmers for the adoption of improved technology

12. Need for ensuring rational utilisation of land

13. Cost of living of massessDetermination of MSPCost of productionChanges in input pricesInput- out put price parityTrends in Market pricesDemand and supplyInter crop price parityEffect of industrial cost structureEffect of cost of livingInternational price situationIssue prices and subsidy

14. Price Policy for Rabi Crops of 2010-11- CACPAs per FAQWheat : Rs.1120.00/ Qtl.Barley : Rs. 780.00Gram : Rs. 2100.00Lentil : Rs. 2250.00Mustard : Rs. 1850.00Sunflower : Rs. 1800.00Future Plans and recommendationsAssociating spot exchanges

15. Payment of MSP/bonus through A/c payee cheques

16. Tax to be reduced on items under MSP

17. Enhance present storage capacity of food grain/ scientific system

18. Second green revolution should aim at all important crops and regionsFuture Plans and recommendationsFor growth in the sector, emphasis should be on optimal use of resources (water/fertilisers)

19. Government to keep vigil and monitor the possible pest and fungus attacks/ Evolve sturdy varieties (Ug99)-a virulent stem rust race.

20. Lower the rate of interest on farm credit/ associated cost (processing/inspection)- Interest subvention

21. MNREGS should be made focused on activities to foster the development of agri-facilitating infrastructure.

22. A programme for comprehensive analysis of soil profiling and their physical and chemical properties.

23. Promote group action among farmers- women farmers

24. Effective extension services propagating pulses cultivation

25. Setting up of technology mission for oil seeds

26. Restructuring of import duty for oil seedsPrice Policy for Khariff Crops of 2010-11- CACPPaddy : Rs. 1000.00/ 1030.00 per Qtl.Jowar : Rs. 880.00/ 900.00Bajra : Rs. 880.00Maize ; Rs. 880.00Ragi : Rs. 965.00Ground nut : Rs. 2300.00Soyabean : Rs. 1400.00- 1440.00Sunflower seed : Rs. 2350.00Cotton : Rs. 2500.00/3000.00Tobacco ; Rs.5000.00/ 5200.00

27. Key features of budget 2011-12Enhancement of production and distribution system for fruits, vegetables, milk, meat ,poultry and fishRKVY- 6755 Cr to 7860 CrBringing Green revolution to Eastern regions 400 Cr.Integrated devt. Of 60000 pulse villages 300 CrPromotion of oil palm- 300 cr. For 6000 ha aiming at 3 lakh MT pa.Initiative on vegetable clusters- 300 CrProduction of nutri cereals- bajra/Jowar/ragi- 300 CrAccelerated fodder devt. 300 Cr to benefit farmers in 25000 villagesNational mission for sustainable agriculture- organic farming methods/ combining modern technology with traditional farm practices

28. Key features of budget 2011-12Agricultural Credit : flow- 375000 Cr to 475000 CrInterest subvention: 2 to 3%Strengthen the capital base of NABARD by 3000 Cr10000 Cr to NABARD ST Rural Credit fundMega Food parks- 15 moreStorage capacity and Cold Chains through PPPReforms in AGMARK act

29. Public Distribution SystemDistribution of essential goods to a large number of people through a net work of FPSIts on a recurring basisDepartment of Food& PD, Ministry of Consumer Affairs, Food and Public Distribution.Govt. policy of ensuring availability of food grains to the public at affordable pricesFood security of the poor- Eradication of poverty (330 million nutritionally at risk population)Network- 4.99 lakh FPSJoint responsibility of Central and State Governments

30. Public Distribution SystemResponsibilities of CentreProcurementStorageTransportationBulk Allotment of food grain- CIPResponsibilities of StateDistribution through FPSAllocation within StateIdentification of family BPLIssue of ration cardsSupervision and monitoring of FPS

31. Public Distribution SystemRole of Panchayati Raj InstitutionsAn effort to make TPDS transperantInformation to the citizens with regard to functioning of FPS- RTI on FPSIssue of ration cards to the target group- Details of Beneficiaries to be exhibited for public scrutinyIdentifying wrong sets of people drawing rations and other commodities at BPL ratesSocial auditInformation on per capita entitlement and prices/ Entitlement during natural calamities

32. Public Distribution SystemRPDSStreamlining PDS- 1992Augmentation of reach-farflung/hilly/inaccessible areas1700 blocks covered (DPAP/ITDP/DDP/Designated Hill Areas1995- 2446 blocks covered under Emp. Assurance SchemeProgramme of Action:

33. Public Distribution SystemTPDS1997 – focus on the poorTo benefit 6Cr. Poor families- 72 lakhtonnes of food grainAntyodaya Anna Yojana (AAY)- a step in TPDS to target poorest segments of BPL population- Launched in December 20005% of population have no access to a square meal (hungry population) are to be coveredHighly subsidized issue- Rs.2/- per kg (Wheat) Rs.3/- (Rice)- 35 kg per month for familyState to bear distribution cost (margin to dealers/transportation)- Subsidy is consumer based.Added 50 lakhs more- 2004- HH headed by Widows/terminally ill/disabled/aged >60 years without assured means of income.Further Strengthened in 2006 added 50 lakhs more (2.5 crore HH- (38%of BPL)

34. Public Distribution SystemTPDSCIPCommodity APL BPL AAYRice 8.30 5.65 3.00Wheat 6.10 4.15 2.00

35. NAFEDEstd 2nd October 1958ObjectivesTo facilitate, coordinate and promote the marketing and trading activities of the cooperative institutions in agricultural and other commodities