Meaning
Cooperative marketing involves producer groups who jointly market their produce to benefit from large-scale operations, which individual small farmers often cannot access due to limited output.
India’s cooperative marketing system originated with the Cooperative Societies Act of 1912. The first society emerged in Hubli (1915), focusing on improved cotton cultivation and collective sale. Subsequent reforms like the Royal Commission on Agriculture (1928) and the All India Rural Credit Survey (1954) stressed the need for group marketing and stronger institutional frameworks.
About NAFED
The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) was founded in October 1958 as the apex body for cooperative marketing in India. It manages the procurement, processing, import-export, and distribution of agricultural goods. NAFED is the central agency responsible for Price Support and Market Intervention operations, especially for pulses and oilseeds.
Headquartered in New Delhi, NAFED operates major branches in Mumbai, Kolkata, and Chennai, with a pan-India presence through multiple regional offices and affiliated State Marketing Federations.
Objectives of NAFED
- Coordinate and support cooperative marketing activities.
- Facilitate access to agricultural inputs for member institutions.
- Promote inter-state and international trade of farm commodities.
- Act as a government agent for procurement, storage, and distribution.
Functions of Cooperative Marketing Societies
- Secure fair market prices for farmers’ produce.
- Protect members from unfair costs and malpractices.
- Provide credit against produce as collateral.
- Ensure scientific storage facilities for farm output.
- Offer grading and pricing information services.
- Implement pooling systems to improve bargaining power.
- Serve as government agents for procurement under MSP.
- Support exports to achieve higher returns for farmers.
- Organize cost-effective transportation services.
- Supply critical farm inputs like seeds and fertilizers.
Key Activities of NAFED
(a) Domestic Trade
NAFED engages in internal trade of cereals, pulses, spices, fruits, vegetables, cotton, and eggs to ensure stable producer prices and consistent supply for consumers. It procures goods via cooperatives and public/state bodies.
(b) Foreign Trade
NAFED exports items like onions, garlic, spices, pulses, cereals, and jute bags to countries including Japan, USA, UK, Sri Lanka, and Gulf nations. It has developed a robust cooperative export system post its establishment.
(c) Price Support Operations
As a nodal agency, NAFED procures groundnut, soybean, mustard, gram, tur, maize, and more under MSP to ensure farmers get fair prices.
(d) Supply of Agricultural Inputs
It provides farm equipment and inputs like bio-fertilizers by coordinating with suppliers like the National Seeds Corporation and Fertilizer Corporation of India.
(e) Promotional Services
NAFED runs market surveys, develops pilot cooperatives, trains staff, and enhances infrastructure and regulatory systems to strengthen marketing systems.
(f) Tribal Produce Marketing
A dedicated cell supports the marketing of forest products from tribal areas. A separate body, TRIFED, was formed to assist this mission.
(g) Scientific Storage Infrastructure
NAFED has set up advanced storage units including cold storage, warehouses, and an onion warehouse at Nagapattinam to minimize post-harvest losses.
(h) Food Processing Units
It operates fruit and vegetable processing centers in Delhi and Tamil Nadu to promote agro-processing and improve farmer returns through value addition.