role of the nafed in the agricultural marketing

7/30/2019 Role of the Nafed in the Agricultural Marketing

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ROLE OF THE NAFED IN THE AGRICULTURAL MARKETING The National Commission on agricultural defined agricultural marketing as "A process which starts with adecision to purchases a saleable farm commodity and it involves all the aspects of market structure orsystem,both functional and institutional based on technical and academic considerations and includes pre andpost

harvest operations, assembling grading, storage, transportation and distribution." Thus, marketing is aprocesswhich begins with the production of a commodity and ends at the distribution to the ultimate consumer.Someauthors are of opinion that marketing is deeply concerned with demand and supply. Sharma and Shahstated :"In agricultural marketing, we are concerned with demand and supply conditions, marketing operationsincluding marketing functions, functionaries and costs, price fixation, market structure and performanceandmarketing efficiency."The marketing of agricultural produce is the crux of the rural economy in our country. The wholeprogramme ofproduction undertaken individually or collectively with tall our efforts in planning would be of no use if itwere

not followed by a same and sound marketing system.

CONCLUSION, FINDINGS AND SUGGESTIONSNational Agricultural co-operative marketing federation of India (NAFED) was established as the nationalapexbody of the co-operative marketing system in the year 1958 to promote agricultural marketing.The NAFED shall be to organise, promote and develop marketing, processing and storage of agricultural,horticultural and forest produce, distribution of agricultural machinery, implements and other inputs,undertakeinter-State, import and export trade, wholesale or retail as the case may be and to act and assist fortechnicaladvice in agricultural production for the promotion and the working of its members and cooperativemarketing,

processing and supply societies in India. In furtherance of these objectives, the NAFED may undertakeone ormore of the following activities :

To facilitate, coordinate and promote the marketing and trading activities of the cooperative institutionsinagricultural and other commodities, articles and goods;

To undertake or promote on its own or on behalf of its member Institutions or the Government orGovernment Organisations, Inter-State and international trade and commerce;

To undertake purchase, sale and supply of agricultural products, marketing and processing requisites,suchas manure, seeds, fertiliser, agricultural implements and machinery, packing machinery, constructionrequisites, processing machinery for agricultural commodities, forest produce, dairy, wool and otheranimal

products;To act as warehouseman under the Warehousing Act and own and construct its own godowns and cold

storages;So to what extent, the NAFED has improved the agricultural marketing system as well as the

infrastructuralfacilities being provided, how far these have helped in increasing agricultural production and getting betterprices of the same, and its impact on the farmers' income are some of the major issues which will be dealtwith in a nut-shell in the following lines:-


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The bulk of the business of the NAFED and state federations is on agency basis/ price support on behalfofthe central government.

NAFED has failed to provide the infrastructural facilities to the farmers.The success in the sphere of agricultural production needs efficient agricultural marketing services so

thatfarmers may get remunerative prices of their produce.

The role of NAFED in the supply of agricultural inputs is limited. The farmers generally approach to theprivate businessmen for getting the inputs like fertilizers, pesticides and agricultural implements and theyhave pay the higher prices for lower quality materials. Sometimes farmers fail to get the inputs in duetime.Its directly affects the agricultural production.

Sometimes NAFED is not utilizing the agency of state federations and marketing societies as collectioncentres for procurement of commodities, but operate through its own branches.

Mostly the NAFED is controlled by the managing Director/the general Body. While the day-to-dayadministration should be fully vested with the managing Director,

The requirement of the NAFED, especially in the context of developing economy like India, is thatmanagement position should be marked by professionally educated, skilled and trained personnel.

Besides, though statefeds are the members of NAFED and marketing societies ace the members ofstatefeds

yet there is no effective business linkage among them.It has been observed that in other fields of cooperation the gains of cooperative marketing societies

havealso, by and large, accrued to the large farmers. This is no account of the hold exercised by thesefarmers onthe rural economy.

NAFED takes key personnel on deputation from central government. This should be avoided and as faraspossible their own cadre of employees should be developed.

9. FUTURE SCOPEThe federal of cooperative marketing societies in India consists of, like structure the NAFED consists ofthefollowing :- National Agricultural Co-operative Marketing Federation at the national level, State Marketing

Federations at the state level, and District or Regional Marketing Societies at the intermediate level, thepattern of organization of cooperative marketing societies is not uniform throughout the country while insomeof the states, particularly, in Assam, Bihar, Kerala, Madhya Pradesh , Karnataka, Orissa, Rajasthan andHestBengal there is two-tier pattern of organization namely, primary marketing societies at the level of thesecondarymarket and the apex marketing societies .Marketing support to farmers and maintaining steady supply of commodities to consumers at reasonablepricesare the objectives of its internal trade functions.

These functions cover a wide range of items like. food grains, pulses, oilseeds, spices, fruits and

vegetables,eggs, tribal produce, packing material, agricultural machinery and implements, organic and inorganicfertilizerspesticides etc.NAFED purchases agricultural commodities through the co-operative marketing network which are thefarmer'sown organization. In disposals, it gives preference to co-operatives, public sector organisations and stateagencies.Export of agricultural commodities through the co-operative marketing system developed on a large scaleafter


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the establishment of NAFED. The Government of India has canalised the export of sensitive items likeonion,nigerseed sesame seed, bajra, jowar, ragi and Gum Karaya through NAFED. NAFED has been able topurchaseonion, HPS Groundnut, Nigerseed, sesame seed etc. from the 'producing areas by providingremunerative pricesto the growers without adaversely affecting the internal supply as well as consumer prices.Simultaneously, perunit value realizations in export and total export earnings has increased substantially.The agricultural inputs division of the NAFED is helping farmers by supplying them agricultural machineryliketractors, harvesting combines, spare parts and inputs. Farmers are also provided after-sale service oftractors. Aunit named as Krishi Yantra Udyog has set up at Bhiwadi in Rajasthan by the federation to meet therequirements of farm tools, agricultural imp1ements and spare parts for tractor and harvest combines.Thus, the NAFED has improved the agricultural development system as well as the infrastructuralfacilitiesbeing provided, how far these have helped in increasing agricultural production and getting better pricesof thesame.

Akhilesh Yadav directs officials to make UP

'mandis' world class

By PTI | 22 Jun, 2013, 05.31PM IST

LUCKNOW: Uttar Pradesh Chief Minister AkhileshYadav today directed officials to chart out a

project to improve facilities at state's 'mandis' and make them world class.

Akhilesh, who is also the chairman of Mandi Parishad, asked the officials to identify the areas

which needed to be improved for making "radical changes" in the 'mandis' (a whole sale marketwhere farmers sell their vegetables, food grains and other products).

The chief minister asked for setting up modern 'apna bazars' at 31 places, where, besides theavailability of agricultural inputs, arrangements for folk culture, recreation and hand loom

products should also be made for the benefit of farmers and their families.

The chief minister said that if required Public Private Partnership (PPP) model for running these'apna bazars' should be considered.

Akhilesh, who was presiding over a meeting of Uttar Pradesh Rajya Krishi Utpadan Mandi

Parishad, asked for equipping the 'mandis' with solid waste management, rain water harvestingandsolar energybesides planting trees in the open land of mandis.

For those growing betel leaves in Bundelkhand area of the state, he directed for providing freetransport facility to help them get better remunerative price for their product.

The chief minister said that it has been decided that under theMandi Parishadrun personal
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accident assistance scheme, an assistance of Rs 50,000 in the event of death should be enhanced

to Rs 2 lakhs.

role of the nafed in the agricultural marketing

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