NAFED Current Affairs - 2019

Category Wise PDF Compilations available at This Link

Nafed sell pulses to states under the scheme of Central Government

The National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) has sold over 5 lakh tonnes (lt) pulses to 10 States and a Union Territory at discounted rates under the scheme of central government.

Why the central government had introduced the scheme?

The first of its kind scheme was introduced by the central government to clear the stock procured during the past few years and improve nutritional indicators for poor households. The objectives of the scheme are:

  • Making pulses available to poor people at affordable rates.
  • Reduction of the sale of pulses, procured by the government procurement agencies, in the open market as it often brings down the mandi prices of the freshly harvested crop, which in turn is against the interests of farmers.

Features of the scheme

The salient features of the scheme are:

  • The subsidised price of the pulses is Rs 15 lower than the weighted average mandi price of any of the pulses and the states have to borne by states.
  • There is no limit on how much a State can buy from Nafed under the scheme, but the states are required to justify the demand.
  • The states are required to distribute the pulses only through welfare schemes and should produce the evidence.

The scheme is already showing the desired impact particularly on the lifting of market prices. Reports suggest that the mandi prices of pulses have already increased on an average by Rs 300-1,000 a quintal in different markets, even though it was just two and a half months since the scheme was launched.

Month: Categories: Business, Economy & Banking

Tags:

CCEA doubles Bank guarantee limit for pulses & oilseeds for NAFED

The Cabinet Committee on Economic Affairs (CCEA) has approved proposal to double guarantee to Rs. 19,000 crore from earlier Rs 9,500 crore to National Agricultural Cooperative Marketing Federation of India (NAFED) for obtaining credit from banks for procurement of pulses and oilseeds at the support price. The regularization and extension is for undertaking procurement operation of pulses and oilseeds under Price Support Scheme (PSS).

The CCEA also approved Government Guarantee up to Rs. 45 crore to the Small Farmers Agri-Business Consortium (SFAC) for meeting its existing liability and settlement of extant claims. The guarantee will be provided for period of 5 years, till 2021-22 and with waiver of 1% of government guarantee fee.

Background

As the market price of almost all pulses and oilseeds are ruling below Minimum Support Price (MSP) as notified by Government, provision of Government Guarantee will help in protecting farmers producing these commodities from making distress sales during peak arrival period. It will also provide remunerative prices to encourage higher investment and production. It will also provide to safeguard interest of consumer by making available supplies at reasonable price with low cost of intermediation.

National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)

NAFED is apex organization of marketing cooperatives for agricultural produce in India. Its headquarters is located in New Delhi. It was founded in October 1958 to promote trade of agricultural produce and forest resources across the nation. It functions under Ministry of Agriculture.

NAFED is now one of the largest procurement as well as marketing agencies for agricultural products in India.  In 2008, it had established, National Spot Exchange, a Commodities exchange as a joint venture of Financial Technologies (India) Ltd. (FTIL).

Month: Categories: Business, Economy & Banking

Tags: