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Presentation on NAFED By Kailash Jyani Addl. Managing Director

Presentation on NAFED By Kailash Jyani Addl. Managing Director. Kharif Conference Ministry of Agriculture New Delhi 23-03-2005. Background. Overall Economic Growth Is Dependent Upon Agricultural Growth Particularly in India Agriculture Contributes Around 22% to Our GDP

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Presentation on NAFED By Kailash Jyani Addl. Managing Director

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  1. Presentation on NAFEDBy Kailash JyaniAddl. Managing Director Kharif Conference Ministry of Agriculture New Delhi 23-03-2005

  2. Background • Overall Economic Growth Is Dependent Upon Agricultural Growth Particularly in India • Agriculture Contributes Around 22% to Our GDP • Its Effective Contribution to the National Economy Is Significantly Greater on Account of Its Backward and Forward Linkages With Other Sectors • Indian Farmers Mostly Marginal and Small With Average Land Holding Less Than 1.5 Ha

  3. Market for Produce Inputs Extension Credit Should Be Readily Available Should Improve Productivity Should Efficiently Transfer Technical Know How Should Be Cheaper & Flexible Requirements

  4. Nafed is a National Level Apex Cooperative Marketing Federation with the Objective To Organize, Promote and Develop Cooperative Marketing, Processing and Storage of Agricultural Produce, Distribution of Inputs and Domestic and International Trading of Agricultural Commodities.

  5. Main Activities of Nafed • Implementation of PSS of GOI • Marketing of Agricultural Inputs • Contract Farming • Marketing of Agricultural Produce • Implementation of MIS of GOI • Consumer Marketing • Industrial Activities • Warehousing • Research & Development

  6. Price Support Scheme (PSS) • Nafed Is The Central Nodal Agency for Procurement of Oilseeds, Pulses & Cotton • Price Support Operations Is Implemented Through Two -Tier System • GOI Declares Minimum Support Price (MSP) • State-wise Tentative Targets Arrived at • Procurement Commences Whenever Prices Fall Below MSP • Procurement Undertaken Without Any Quantitative Ceiling

  7. Strengths of Nafed as Nodal Agency • Three-tier Cooperative Network: Ensures Maximum Coverage Under PSS Including A&N Islands & Lakshadweep • Manpower Having Multi-Commodity Expertise: Ensures Efficient Handling Irrespective of Quantum • Commercial Orientation: Ensures Maximisation of Realisation

  8. Commodities Covered & MSP(2005)

  9. Price Support Operations-Quantum Jump PSS Commenced Since 1976-77 • Limited Procurement Till 1999. Value- Rs.380 Crores • From Kharif-99 onwards Procured 26.48 Lakh MTs of Oilseeds and Pulses Value - Rs.3863 Crores • Sizeable Procurement Due To: • Easy Trend in International Prices • Higher Production • Higher MSP To Induce Crop Diversification

  10. Procurement under Price Support Operations (During Kharif 1999-Kharif 04)

  11. Reasons Why Entire Production is Not Procured under PSS • Entire Quantity of Marketable Surplus Does Not Match FAQ • Resource Rich Farmers Have Better Stockholding/risk Taking Capacity • Interlocking of Credit and Produce Markets • Since PSS Not Required Regularly, Farmers Having Strong Bond With Arhatias Offer Stocks to Arhatias Only • Payment of Commission to Katcha Arhatias Not Allowed Like FCI • Small Lots Sold to Village Level Aggregator • Prices Stabilise Above MSP Owing to Procurement Under the Scheme

  12. Scenario for PSS During Rabi 05 • Inter-state Kharif Conference Organised by Nafed on 07-02-05 for Crop Assessment • Prices Ruling Below MSP of Oilseeds, Cotton & Pulses • Procurement of Oilseeds (Mustardseed, Safflowerseed, Sunflowerseed) Already Commenced • Procurement of Pulses & Cotton Also Commenced

  13. Likely Procurement of Oilseeds During Rabi 05

  14. Likely Procurement of Pulses During Rabi 05

  15. Procurement Position of Oilseeds as on 21-3-05

  16. Procurement Position of Pulses as on 21-3-05

  17. Procurement Position of Cotton As on 21-3-05

  18. Request to the State Govts. For Successful Implementation of PSS • Publicity About MSP and Purchase Centres • Awareness About Quality Parameters Through Agricultural Extension Officers • Impress Upon Farmers Not to Resort to Distress Sale Below MSP As No Cut-off Date for Procurement • Ensure Farmer Identification to Ensure That Benefit Goes to Farmers Only

  19. Seed Marketing by Nafed • Nafed Undertaking Seed Production Under Contract Farming Mode in AP, MP, Uttranchal, Rajasthan and Gujarat • Also Marketing Seeds of Other Govt. Agencies Like SFCI, USTDC, Mahabeej and Private Players • Planning to Set up Seed Processing and Grading Plant at Dewas (MP) • Seeds Presently Available for Kharif 05 Are: Wheat, Soyabean, Groundnut, Toor, Moong, Urad • Nafed May Also Be Covered Under ISOPOM

  20. Contract Farming • Integrated Cultivation Programme Under Contract Farming Benefits Farmers • Nafed Has Taken Initiative in Tamil Nadu for Contract Farming • 32000 Farmers Registered • 28000 Hectares Area • Nafed to Buy Pulses & Oilseeds to the Tune of 5000 Mts Each and Maize 10000 Mts

  21. Mechanism for Contract Farming • MOU with Commissionerate of Agriculture (TN) • Pre-harvest Extension • Availability of Credit • Providing Quality Inputs • Transfer of Technical Know How Through Agri. University • Centres Identified for Procurement • Procurement at Weighted Average Rate of Last Week or MSP

  22. Thank You

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