An Earnest Request...An Earnest Request Public Relation Division has exercised due diligence and care while compiling and printing information/data/ photographs in this NAFED News.

An Earnest Request

Public Relation Division has exercised due diligence and care while compiling and printing information/data/photographs in this NAFED News. However, if by any chance, mistake of any nature had escaped our notice, we request

you to be magnanimous and treat the same as an act of human error.

ThanksPR Division

July - September 2020 1

NAFEDNews

July - September 2020

VOLUME VIII

Chairman :Dr. Bijender Singh, Ex. MLA

Managing Director :Sh. Sanjeev Kumar Chadha

Additional Managing Director :Sh. Sunil Kumar Singh

Additional Managing Director :Sh. Pankaj Kumar Prasad

General Manager (PR) :Sh. Tarun Handa

Editor :Ms. Suman Maheshwari

Associate to Editor :Ms. Sangeeta Babbar

Contents1. NAFED closes FY 2019-20 with remarkable pro� t of

Rs. 272.85 Crore2

2. Govt. of India appoints NAFED as the 4th implementation Agency for creation of FPOs

3

3. NAFED takes over FIFA 3

4. FIFA in partnership with MAHAFPC launches the � rst NAFED e-Kisan Mandi at Gultekadi, Pune

5

5. 4000 MT of Non Basmati Rice dispatched to Zambia, Zimbabwe, Malawi and Sierra Leone towards humanitarian aid

7

6. NAFED creates Central Bu� er of Onion 8

7. NAFED continues supply of pulses under PMGKAY, scheme extended up to November, 2020

8

8. NAFED procures around 1.00 lakh MT of oilseeds and pulses valuing Rs. 563 Crore during Rabi 2020 season

9

9. Paddy Procurement target in Assam Achieved 10

10. Govt. of Uttar Pradesh allocates target of 2.00 lakh MT to NAFED for procurement of paddy

10

11. Nafed commences procurement of maize in outright account to support the farmers of Bihar.

11

12. NAFED commences release of onion from Bu� er to check onion price rise

11

13. MAHA ONION Post Harvest Infrastructures of onion inaugurated in Maharashtra

12

14. Organic Tea in portable cups in three � avours and NAFED brand spices launched by Consumer Marketing Division

13

15. Chandigarh Branch to supply grocery items to J&K 13

16. Seed Production and distribution activities stepped up 13

17. IT Division implements various initiatives for improving the work conditions and productivity of Business Divisions and Branches

16

18. New Sub O� ce to be opened in Sriganganagar to strengthen NAFED’s activities in Rajasthan

17

19. Employees undergo online trainings from reputed institutes

17

20. NAFED bags annual order from Govt of Jammu and Kashmir for the supply of sugar

18

21. New o� ce of Consumer Marketing Division opened in Mohan Cooperative Area, New Delhi

18

22. The New farm Bill 2020: Myths and Reality 19

23. Articles/Features on NAFED published in magazines/journals during July to September 2020

21-24


NAFED closes FY 2019-20 with remarkable pro� t of Rs. 272.85 CroreStrong � rst and second quarter results for ongoing FY 2020-21

NAFED booked a remarkable Gross pro� t of Rs 272.85 Crore during the FY 2019-20 which is the second highest ever since the inception of the Federation. There is Net Pro� t of Rs 165.65 Crore during the year. A turnover of Rs.16,280.98 Crore was achieved. The Share Capital also increased from Rs. 25.40 Crore to 27.05 Crore as on 31.03.2020. Net worth of the Federation as on 31.03.2020 has been reduced to Rs. (16.38) Crore against Rs. (174.39) Crore as on 31.03.2019. NAFED continued to enjoy the status of Export House as per Certi� cation of recognition issued by Ministry of Commerce, Government of India.

Oilseeds worth Rs. 7045.14 Crore and pulses worth Rs. 7519.53 Crore were handled during the year under PSS/PSF in account of Govt. of India providing bene� t of the MSP to millions of farmers across the country. The Food grains business was to the tune of Rs. 790.94 Crore.

S. No.

Particulars 01.04.2019 to 31.03.2020 (Audited)

01.04.2018 to 31.03.2019 (Audited)

1 Turnover 16,280.98 20,138.46

2 Purchase 18,612.92 29,473.90

3 Gross Pro� t 272.85 343.00

4 Net Pro� t before Tax

239.28 260.82

5 De� ered / Income Tax

(73.63) 18.49

6 Net Pro� t after Tax

165.65 279.31

Results of quarter-1 & quarter-2 for FY 2020-21: For the ongoing � nancial year, NAFED delivered strong � rst and second quarter results, driven by earning of administrative charges on account of operations undertaken in account of GOI.

As per Tentative Financial Result of the Federation for the 1st Quarter, NAFED has earned a Gross Pro� t of Rs 254.65

During the 2nd quarter, as per Tentative Operational Result of the Federation, Gross Pro� t of Rs 303.54 Crore has been earned in the current year up to 30.09.2020 as against a pro� t of Rs. 155.00 Crore during the corresponding period of the Previous year. Here also the improvement in � nancial performance is mainly due to earning of administrative charges to the tune of Rs 281.15 Crore (Previous Year Rs 143.51 Crore). Further, Federation has earned Rs. 50.09 Crore as service charges up to 30.09.2020 in r/o supply of Milled Pulses to State Governments under PMGKAY Scheme of the Government of India.

300

250

200

150

100

50

0

01.04.2020 to 30.06.2020 (in crores)

01.04.2019 to 30.06.2019 (in crores)

Gross Pro� t Net Pro� t

Tentative results of 1st quarter for FY 2020-21 in comparison to last year

Crore in the current year up to 30.06.2020 as against a Gross pro� t of Rs.140.11 Crore during the corresponding period of the previous year. The improvement in � nancial performance is attributed to earning of administrative charges to the tune of Rs 237.35 Crore (Previous Year Rs 133.64 Crore).

Tentative results of 1st quarter for FY 2020-21 in comparison to last year

S. No.

Particulars 01.04.2020 to 30.06.2020

( Fig in Crore)

01.04.2019 to 30.06.2019

(Fig In Crore)

1 Turnover 4,250.60 4,415.70

2 Purchase 16,753.61 8,846.41

3 Gross Pro� t 254.65 140.12

4 Net Pro� t 241.92 127.04


01.04.2020 to 30.09.2020 (in crores)

01.04.2019 to 30.09.2019 (in crores)

Gross Pro� t Net Pro� t

Tentative results of 2nd quarter for FY 2020-21 in comparison to last year

Tentative results of 2nd quarter for FY 2020-21 in comparison to last year

S. No.

Particulars 01.04.2020 to 30.09.2020 ( Fig in Crore)

01.04.2019 to 30.09.2019

(Fig In Crore)

1 Turnover 10,009.07 6,410.97

2 Purchase 18,494.41 9,354.66

3 Gross Pro� t 303.54 155.00

4 Net Pro� t 253.99 134.89

350

300

250

200

150

100

50

0

Govt. of India appoints NAFED as the 4th implementation Agency for creation of FPOsNAFED has been appointed as the 4th National Implementing Agency other than SFAC, NABARD and NCDC for the creation of 10,000 FPOs by the Department of Agriculture, Cooperation & Farmers’ Welfare, Govt. of India. It has been desired that while creating FPOs, focus should be on specialized agri-products that have potential for income enhancement for the farmers through

aggregation and market linkages, for example Kaitiya wheat of Bundelkhand, Durum variety wheat of MP, black rice, kala namak, rice, red rice of J&K, queen pineapple, high altitude apple, high curcumin turmeric, special bajra of Kutch, high altitude honey, sweet jackfruit of Tamil Nadu, etc.

Doubling the income of farmers has been one of the topmost priorities of the Government of India and various initiatives have been taken to achieve this vision. The FPOs have been identi� ed as the most appropriate institutional form around which to mobilize farmers and build their capacity to collectively leverage their production and marketing strength. In pursuant to the budget announcement, the Government in the Department of Agriculture Cooperation and Farmers Welfare (DAC&FW) has approved a new Central Sector Scheme titled “Formation and Promotion of Farmer Produce Organizations (FPOs)” to form and promote 10,000 new FPOs with a total budgetary provision of Rs 4,496 Crore for � ve years (2019-20 to 2023-24) with a further committed liability of Rs 2,369 Crore for the period from 2024-25 to 2027-28 towards handholding of each FPO for � ve years from its aggregation and formation.

In order to look after the work related to FPOs and related activities, a dedicated Division has been created in Head O� ce of NAFED under the name of ‘Farmer Outreach and Facilitation (FOF)’.

NAFED takes over FIFATo work closely for providing e� ective market linkages for prosperity of farmers, NAFED has taken over the national-level Federation of Indian FPOs and Aggregators (FIFA), along with its professional team and 106 FPOs base with the aim of focusing on providing support to Farmer Producer Organizations (FPOs) registered under Cooperatives Act and Companies Act by linking them to markets for their agriculture produce as well as the supply of agriculture inputs.


Mr. Pankaj Kumar Prasad, MD FIFA

Mr. Unnikrishna Kurup, Director FIFA Mr. Kamal Bhushan, Director FIFA

Mr Pankaj Kumar Prasad, who is also the Additional

MD of NAFED, has been appointed as MD FIFA. Mr

Unnikrishana Kurup, General Manager, NAFED and

Mr. Kamal Bhushan, Manager, NAFED, have been

appointed as the Directors of FIFA. While taking over

the challenging assignment, Mr. Prasad stated, “The

prime function of FIFA is to increase farmers’ income

through integration of member organizations into

the value chain. Mobilisation of farmers into FPOs

shall facilitate operation of agriculture at the three

stages of pre-production, production, and post-

production segments in an e� cient manner.”

FIFA under the aegis of NAFED, shall promote and strengthen FPOs by addressing the challenges related to access to investment, technology and quality inputs in order to prepare farmers for new market linkages. In parallel, FIFA shall also work with its registered members to create business relationships to scale up their business and revenues.

FPOs play a vital role in strengthening the supply chain management. The wide network of Farmers’ Cooperatives and Farmers Producer Organizations (FPOs) present in the remotest part of the country can be used in ensuring procurement from farmers at farm gate. FPOs can be the game-changers for India’s agriculture sector, empowering farmers and strengthening them economically and socially.

Mr Sanjeev Kumar Chadha, MD NAFED


New O� ce of FIFA inaugurated: The new o� ce of FIFA at Mathura Road, New Delhi, was inaugurated on August 31, 2020 by Shri Sanjeev Kumar Chadha MD, NAFED in the presence of senior o� cials and the sta� of NAFED, members and other dignitaries, following the necessary social distancing and other safeguards as mandated in the wake of COVID 19 Pandemic.

MD NAFED inaugurating the New o� ce of FIFA. Also seen in the picture is Mr. S. K. Verma, Executive Director NAFED.

Glimpses of inauguration of FIFA o� ce

NAFED’s initiative to empower farmers: FIFA shall provide various other bene� ts to members like Opportunity for partnership in procurement for Price Support Scheme (PSS)/ Market Intervention Scheme (MIS), Display of Company Pro� le (FPOs/FPO Federation) on the Membership Section of FIFA’s website, Awareness Programs/Logistic Support / Warehouse Support/ Storage Support including pre-cooling and cold storage facilities under Operations Green, Training & Capacity Building of BoDs of FPO, Post-harvest management, Market Networking opportunity amongst FPOs/FPO Federations, connecting to Institutional buyers of agri-produce, agri-input suppliers, Warehouses at the farm-gate level (Micro-warehouses), assistance in creating Detailed Project Reports (DPRs) and Business Plans etc. The initiatives would lead to empowerment of farmers.

Vital role of FPOs in the agri sector

FIFA, with the help of NAFED, is in the process of establishing a network of physical and electronic Kisan mandies popularly called NAFED e-KISAN MANDI (NeKM) outside the APMCs as per The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020. The structure of NeKM shall be the hub-and-spokes model. The spokes shall be the mandies at the farm-gate levels (local mandies). Hub shall be the centralized mandi near major cities connecting all spokes.

FIFA in partnership with MAHAFPC launches the � rst NAFED e-Kisan Mandi at Gultekadi, PuneFIFA, a 100% subsidiary of NAFED in partnership with MAHAFPC inaugurated the � rst NAFED e-Kisan Mandi at Gultekadi, Pune on 3rd September, 2020 in presence of former Additional Chief Secretary, Dr. Sudhir Goyal, MD NAFED, MD FIFA & MD MAHAFPC. The venture is expected to bene� t 1.50 lakh farmers of 300 FPOs in the state of Maharashtra. Presently 30 FPOs in Pune district are part of the e� ort. This is the � rst e-Mandi launched after new


Retail Counter at NAFED e Kisan Mandi, Pune

FIFA aims to provide agri inputs to the farmers

Agricultural Ordinances by the Government. The next two e-kisan mandies shall be launched in Mumbai and Nashik shortly and the initiative would then be expanded to Madhya Pradesh, Karnataka, Haryana, Gujarat and Jharkhand.

NAFED e Kisan Mandi, Gultekadi, Pune

E mandíes to link farmers to the value chain system:

The NAFED e kisan mandies (NeKM) shall be well equipped with physical infrastructure like electronic auction, product display, retail counter, drying, cleaning, grading, packaging, warehousing and cold storage facilities for use by the members. This is essential for the online electronic market to function e� ectively for achieving the desired objectives. The mandies will seek to bring farmers, agri-producers, traders and small buyers on a common platform for trading agricultural commodities. For this purpose, traders/suppliers, institutional buyers, wholesalers, retailers, direct consumers and retail market chains will be registered on the (NeKM) to enable direct online purchases from farmers. The farmers will bene� t greatly through value addition of their produce, e� cient price discovery mechanism, getting easy access to buyers and also avoidance of distress sale of their produce.


Mandies to not compete with but compliment the physical markets

The mandi platform would not compete with but complement the physical markets. FPCs will collect the orders from the online platform and provide the service. FIFA is also assisting its member organizations in setting up of farm-mechanization centers. At present, 18 such Custom Hiring Service Centres (CHSCs) are functional in Rajasthan and Karnataka, which are being operated by its member FPOs in the respective regions. Small farmers can borrow agricultural implements from these CHSCs on custom hiring basis at a� ordable prices. FIFA is currently involved in aggregation and wholesale trading of perishables (Fruits & Vegetables) and non-perishables (Pulses, Cereals and Spices) through its member FPOs.

With the removal of inter state and intra state movement barriers in the recent agricultural reforms announced by the Government, the (NeKM) will greatly help the farmers for sale of their produce in an e� ective and transparent manner.

4000 MT of Non Basmati Rice dispatched to Zambia, Zimbabwe, Malawi and Sierra Leone towards humanitarian aid

MEA, Govt. of India, New Delhi has designated NAFED for supply of humanitarian assistance to various countries in account of MEA. During the quarter, NAFED supplied 1000 MT each Non Basmati rice to Zambia, Zimbabwe, Malawi and Sierra Leone. Shipments to

Zambia and Sierra Leone were arranged from Nava Sheva Port , Mumbai, while for Zimbabwe and Malawi, shipments were arranged from Kolkata port. The supplies were organized promptly on receipt of orders from the Government.

“Nafed would invest in setting up warehouses and cold storage at the e-kisan hubs in addition to providing drying, sorting and grading facilities. This means that farmers no longer have to sell in distress and can get their agri-produce dried, cleaned and graded. They can also keep perishables in cold storage and bring it out when prices are more remunerative.”

Mr Sanjeev Kumar Chadha, MD NAFED


NAFED creates Central Bu� er of Onion On the directions of Department of Consumer A� airs (DoCA), Ministry of Consumer A� airs, Food and Public Distribution, NAFED created a Central Bu� er stock of onion (Rabi-20) under Price Stabilization Fund (PSF) Scheme of Government of India. Procurement of onion for the bu� er was commenced during last week of April, 2020 in various APMCs in the states of Maharashtra, Madhya Pradesh & Gujarat. Stocks were also covered through direct procurement from farmers through member Cooperative Societies, Farmers Producers Organizations (FPOs), State Level FPO Federation, etc. A total quantity of 98,827.73 MTs of onion (Rabi-20) valuing around Rs. 102.30 Crore has been procured through open auction in the states of Maharastra, MP & Gujarat.

The bu� er stock serves the dual purpose of stabilising prices in case of onion produce shortage as its procurement provides farmers with better prices in the event of crashing market prices due to lack of demand.

NAFED procures onion from bu� er stocking

NAFED continues supply of pulses under PMGKAY, scheme extended up to November, 2020Govt of India had announced a scheme in March, 2020 namely, Prime Minister Garib Kalyan Ann Yojna (PMGKAY) to provide 1 kg preferred pulses to Ration Card Holders per family per month in the wake of Covid 19 pandemic and nationwide lockdown situation to mitigate the hardship of poor people. NAFED was entrusted with the task of supplying milled/cleaned pulses to States/UTs for three months and designated a nodal agency by the Govt of India. Based on the information from all States, 1.95 lakh MTs Pulses was required per month for 19.55 Crore households in the country. The raw stock of pulses available in National Bu� er created out of PSS/PSF stocks was utilized for milling/standardization before supply to designated locations in the States. The respective State/UT Governments made necessary arrangements for lifting and further distribution to the bene� ciaries through their own network.


Govt of India also announced various other schemes for di� erent sections of the society which inter-alia included migrant workers stranded at di� erent places in the country due to sudden lockdown on account of COVID 19 Pandemic. The Scheme provided 1 kg of Whole Channa per month to migrant family for a period of two months. The number of migrant workers was estimated to be 10% of the total NFSA card holders, who are not having any food card in the State where they are stranded.

Amidst extreme challenging conditions on account of the ongoing Pandemic and lockdown conditions, NAFED has made supplies of 5.82 LMTs of di� erent pulses under PMGKAY in a short span of 3 months from April to June 2020 and 34449 MTs whole Channa under Atam Nirbhar Bharat Scheme for migrant workers in a span of 3 weeks.

PMGKAY scheme was extended for further � ve months i.e. July to November, 2020 wherein 1 kg of chana per card per month was to be supplied by NAFED for distribution by the states along with wheat and rice. NAFED took prompt action and arranged supply of 7.34 LMTs of chana against total requirement of 9.72 Lakh MT to all the State/UTs. The balance quantity is also expected to be dispatched by the end of October 2020, well before the stipulated time period.

The supply and distribution of pulses to each State/UT is being closely monitored by Government of India at the highest level. There is also regular monitoring and review by Nodal O� cers specially appointed by Govt. of India for the purpose.

In addition to PMGKAY supplies, NAFED continued to receive orders from various States like Rajasthan, West Bengal, Kerala etc. for supply of pulses to meet their requirement under various welfare schemes, which are being successfully executed by NAFED.

NAFED procures around 1.00 lakh MT of oilseeds and pulses valuing Rs. 563 Crore during Rabi 2020 seasonInclement weather conditions a� ect Kharif crops dampening Kharif procurement prospects

Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW), Ministry of Agriculture and Farmers Welfare, Government of India has sanctioned a quantity of 14.08 Lakh MT from July, 2020 to September, 2020 for procurement of Pulses and Oilseeds under PSS during Kharif 2020-21 Season.

This Kharif season, owing to erratic rains during production and harvesting stage, the crop has been adversely a� ected and availability of FAQ stocks is less in comparison to last Kharif Season. The crop of Urad, Moong, Soyabean and GN Pods has su� ered damages in the producing states. However, it is expected that a total quantity of around 18 lakh MT of Pulses and Oilseeds valuing around Rs 9,500 Crore may be procured by NAFED by the closure of season, which would generate an income of about Rs. 140 Crore by way of service charges.

During the Rabi 2020 season, NAFED procured 1.09 Lakh MT of Pulses & Oilseeds valuing around Rs 563 Crore bene� tting around 0.64 lakh numbers of farmers.


The disposal of stocks procured under PSS/PSF is in progress and during the current quarter of July to September 2020, around 15.45 Lakh MT of Pulses and Oilseeds valuing Rs 7,675 Crore has been disposed o� through open market sale. Meanwhile on the request of Department of Consumer A� airs (DoCA), Ministry of Consumer A� airs, Food & Public Distribution and subsequent approval of DAC & FW, a quantity of 11.86 Lakh MT of PSS stock of pulses has been transferred to PSF for bu� er stocking.

NAFED has received following sanctions from DAC&FQ, Govt. of India for Karif 2020-21 season:

S. No. STATE COMMODITY SANCTION QNTY(MT)

1 Tamil nadu Moong 2000

Urad 4000

2 Karnataka Moong 21725

Urad 6575

3 Maharashtra Moong 34950

Urad 32175

Soyabean 1289725

4 Haryana Moong 5825

5 Telangana Moong 11825

Paddy Procurement target in Assam AchievedGuwahati branch has procured 45742.74 MT of Paddy valuing around Rs. 83 Crore in the state of Assam as one of the State Agencies of the State Govt. during the KMS 2019-20 against the target of 44000.00 MT allocated to NAFED.

The procurement was carried out in 15 centres of 9 major Paddy growing districts of Assam by engaging 10 District level Cooperative Societies providing bene� t of the scheme to 3278 numbers of farmers.

The procured stock was milled by 29 Rice Mills engaged by NAFED and resultant CMR of around 30647.62 MT was successfully delivered to FCI under central pool within the time frame of 30th September, 2020 � xed by GOI.

Govt. of Uttar Pradesh allocates target of 2.00 lakh MT to NAFED for procurement of paddyLucknow branch to commence procurement from 1st October 2020

Nafed is one of the state agencies in Uttar Pradesh for procurement of paddy under PSS. The Govt. of Uttar Pradesh has allocated target of 2.00 Lakh MT to NAFED for procurement of paddy in the state under PSS. Necessary arrangements have been made and Lucknow branch is geared up to commence procurement from � rst week of October. Around 23 districts under 8 Divisions of the state have been identi� ed for procurement. Govt. of India has declared MSP of paddy at Rs. 1868 PQ for common grade rice and Rs. 1975 PQ for Grade-A rice for the ongoing season.


Meanwhile Lucknow branch continues to supply pulses (gram whole) to the Government of Uttar Pradesh under Pradhan Mantri Garib Kalyan Anna Yojna (PMGKAY) and Atma Nirbhar Bharat Yojna against target of 1,78,066.58 MT for � ve months supply (July to November). The branch has completed the supplies up to October well within the stipulated time period in all 18 Divisions of the state. The remaining supply for the month of November is in progress and will be completed well before time. The branch has engaged several Dall Millers on OTR basis for supply of stocks.

Nafed commences procurement of maize in outright account to support the farmers of Bihar.

Maize is one the important crops of Bihar. GOI declares MSP for maize every year. Unfortunately despite the commodity being covered under the purview of PSS operations, there is not much procurement under PSS due to which farmers are deprived of remunerative prices and forced to sell the produce to trade below MSP. Presently, the prices of maize are ruling at Rs. 1400 per qtl. as against the MSP of Rs. 1850/- per qtl.

The Board of Directors of NAFED reviewed the situation in the meeting convened in February 2020 and a decision was taken to procure 50,000 MT of maize in outright account in order to protect the interests of the farmers. Accordingly NAFED has commenced procurement of maize in Bihar braving challenging conditions on account

of ongoing COVID 19 Pandemic and � oods in Bihar. A quantity of 1200 MT has been traded so far and further procurement is in progress.

NAFED commences release of onion from Bu� er to check onion price riseThe onion prices in the recent months have witnessed rising trend. The rise is attributed to a disruption in the supply chain caused by the heavy rains in the month of August in major onion producing regions like Satara, Pune and Nashik in the leading onion producing state of Maharashtra. Due to the rains the quality of stored onions deteriorated on account of excess moisture gain.

With a view to check the spike in prices, NAFED started releasing stocks from the bu� er by way of disposal from last week of August, on the direction of DoCA. A quantity of around 17,372 MTs was dispatched to various States/agencies in order to stabilize the volatility of onion prices


in the wholesale as well as retail markets. Calibrated release of stocks in the production areas and de� cient areas helped to stabilize the prices in the market providing respite to consumers.

The stocks from the bu� er were despatched to around 30 locations in the states of Delhi, Maharashtra, West Bengal, Karnataka, Odisha, Assam, Telangana, Uttar Pradesh, Gujarat, Bihar, Jharkhand, Rajasthan and Tamil nadu.

MAHA ONION Post Harvest Infrastructures of onion inaugurated in MaharashtraAligning with recent market reforms, NAFED has taken the initiative of creation of post harvest infrastructure in Maharashtra in association with the State Government of Maharashtra and 25 Farmer Producer Organizations (FPOs) and MAHAFPC based on Public Private Partnership (PPP) modal under the brand name of MahaOnion. The � rst 6 structures of 1000 MT capacity each were inaugurated by Hon’ble Chief Minister of Maharashtra in the august presence of his Cabinet colleagues, MD NAFED and other dignitaries. It is planned to create 25000 MT capacity storage structures of onion in the state of Maharashtra to facilitate prolonged storage of onion. The infrastructure will help reduce losses and support alternate marketing avenues for onion cultivators based on hub and spike model outside APMC markets. Each structure is equipped with infrastructure for weighing, grading and sorting of onion which will help the growers to fetch a better price for their produce.

Government of India in association with Government of Maharashtra under Rashtriya Krishi Vikas Yojna (RKVY) are contributing Rs.11 Crore towards 46.7% cost of the project. The share of NAFED and FPO is Rs. 6.06 Crore each towards remaining 26.2% of the cost.

During current year, NAFED procured 98,828 MT of onion at a total cost of Rs. 102.3 Crore from farmers for National Onion Bu� er Stock out of which around 3800 MT is stored in the above infrastructure created under PPP-IAD project.

NAFED - MAHA ONION (PPP-IAD PROJECT)


Organic Tea in portable cups in three � avours and NAFED brand spices launched by Consumer Marketing DivisionIn view of the ongoing COVID 19 Pandemic, which mandates avoidance of human touch and contact, NAFED has launched an innovative product of good quality Organic Tea in portable cups, available in three di� erent � avours namely Natural, Lemon and Tulsi at a� ordable prices. The products are catching the attention of consumers visiting the stores.

The Division also launched NAFED Brand Spices at its various Stores which will be available in various combinations with high quality at a� ordable prices. NAFED brand pulses are already quite popular amongst the consumers. Further, on popular demand, NAFED Brand products are now available in a chain of 128 Vita stores in Gurgaon District of Haryana.

The initiatives are expected to give further boost to the consumer business of NAFED.

Chandigarh Branch to supply grocery items to J&KNAFED brand eggs launched

The Consumer marketing division of Chandigarh Branch has bagged orders for supply of grocery items to Jammu & Kashmir. The branch has also planned to start business of marketing of eggs under the brand name of NAFED.

In this context, on the occasion of “World Egg Day” on 9th October, the branch launched NAFED brand eggs in the market. “World Egg Day” is celebrated around the world to raise awareness of bene� ts of eggs and their importance in nutrition.

The new business initiatives will generate additional revenue and give a boost to consumer marketing business of the branch.

Launch of NAFED brand eggs in Chandigarh

Seed Production and distribution activities stepped upSeed is the progenitor of the next generation for plants. For the farmer, seed is an invaluable asset for getting a good harvest. Indian philosophers and sages placed great importance on seed quality for a good harvest and prosperity. Quality seeds ensure strong germination, rapid growth and robust yield. Seed industry today is market driven and set to work with a ‘farmer centric’ approach.


Following traditional methods, most farmers use leftover produce of the previous year’s crop as seed for succeeding crop. Seeds often lose genetic purity and vigour after three to four generations which results in poor yield even after all the standard agronomic practices are meticulously adopted. The high cost and poor availability of certi� ed seeds is a challenge for farmers.

NAFED is one of the Central Seed Agencies of DAC&FW, GOI and has been undertaking distribution of certi� ed seed mini-kits of pulses and oilseeds under the National Food Security Mission (NFSM)-Pulses and NFSM-OS&OP scheme of DAC&FW, GOI, with the overall aim of providing high yielding good quality seeds to the farmers.

The key seed crops of NAFED are Groundnut, Soybean, Mustard, Linseed, Sesamum and Nigerseed for oilseeds; Gram,, Moong, Urad, Lentil, Peas and Arhar for pulses and Wheat, Barley & Paddy for foodgrains.

In order to augment its seeds business, NAFED has developed necessary infrastructure for production of seeds which includes seed processing plants and machineries for seed cleaning, grading, treatment, packing and godowns for storage. These are vital components for post-harvest operations to ensure maximum seed viability, vigour and health. There are plans for expansion of the facilities to meet the growing demand for quality seeds in India.

NAFED undertakes seed production and distribution under various programmes as discussed below:

Breeder Seed Multiplication Programme (2020-21):

Under this programme, NAFED purchases breeder seed of di� erent crops from ICAR institutions/NSC/SAU, allocated by DAC & FW, Govt. of India on its SEED NET PORTAL. During Kharif 2020 season, NAFED purchased 59.59 qtls. breeder seed of di� erent crops like Groundnut, Soybean, Sesamum, Paddy, Arhar, Moong & Urad, for multiplication into Foundation seed through NHRDF/empanelled seed producers, across the country. For Rabi 2020-21 seasons, NAFED has received the allocation of 56.93 qtls. breeder seed from DAC & FW, Govt. of India for Wheat, Mustard, Gram, Lentil & Pea crops.

Certi� ed seed production Programme under NFSM-Pulses/OS & OP (2020-21) :

NAFED has obtained the seed production target of 15600 qtls. pulses certi� ed seed from DAC & FW, Govt. of India under NFSM-Pulses during 2020-21 (Kharif/Rabi/Summer), out of which 6700 qtls. pulses seed production programme will be executed during Kharif 2020-21. Under NFSM-OS & OP, NAFED obtained the seed production target of 15579.60 qtls. certi� ed oilseeds during Kharif 2020-21.

Seed Minikits Distribution by NAFED (2020-21) :

NAFED being one of the central seed agency of DAC & FW, Govt. of India also supplies seed minikits (C/s) of Oilseeds &

Seed Minikit of Linseed (Alsi) – 2 KG Loading of Lentil Seed Minikits


Seed Minikits of Lentil- 8KG Certi� cation TAG (Blue colour) for CERTIFIED SEED

Pulses under NFSM scheme of Govt. of India. During Kharif 2020. NAFED supplied 2730.04 qtls Oilseeds certi� ed seed in the form of seed minikits (Soybean = 8 KG & Sesamum = 1 KG). For Rabi 2020-21. NAFED has received the allocation from DAC & FW, Govt. of India for seed minikits distribution of 1144 qtls. Lentil certi� ed seed (Minikit size= 8 KG each) and 2392 qtls. Oilseeds minikits (Mustard & Linseed) of 2 KG each. The states covered under the scheme are UP, MP, Haryana, Jharkhand, Odisha, Gujarat, CG & Rajasthan.

Direct Supply of seed to State Agril. Departments :

During Kharif 2020, besides Seed Minikits (Oilseeds & Pulses), NAFED also supplied around 2799 qtls. certi� ed seed (Oilseed/Pulses) & 1200 Qtls. Peas certi� ed seed, directly to State Agril. Departments of Chhattisgarh, Gujarat, Madhya Pradesh and Himachal Pradesh. For Rabi

season 2020-21, NAFED has obtained supply order of 2021 Qtls. Wheat certi� ed seed from Govt. of H.P. The supply orders of other state governments are in pipe line.

Vegetable seed/others :

Besides conventional seed business of Oilseeds, Pulses & Cereals, NAFED has recently started the vegetable seed business by empanelling major vegetable seed producers across the country. During the quarter, NAFED obtained the supply order of around 2050 Qtls. vegetables seed/planting material of di� erent crops from Department of Horticulture, Chhattisgarh state. The supply for the same is in progress. High value onion seed varieties to the tune of 3 Qtls. were also supplied in M.P. state. NAFED has also obtained the supply order of 1051 qtls. Barseem seed from Govt. of H.P. for supply in H.P. state during Rabi 2020-21 season.


• NAFED on boards KisanSuvidha : NAFED has on-boarded on UMANG (Uni� ed Mobile Application for New-Age Governance) app to provide various services to farmers and others. The app allows access to Indian Government services online through web and mobile app. Various useful information such as MSP prices, di� erent schemes of the Government, procurement locations along with dates etc. are available for the bene� t of farmers and others on this app.

IT Division implements various initiatives for improving the work conditions and productivity of Business Divisions and BranchesDuring the quarter, the IT Division implemented various initiatives as discussed below aimed at better execution of work within the business divisions/branches and making the organisation more techno savvy and e� cient.

• Workshop for employees : The Division constantly strives to upgrade the skills of employees to empower them with new tools and technological solutions that can be implemented across business divisions/branches. In this regard a workshop for Power BI tool was organized by the division on ----- to enable understanding of how IT can empower the divisions and help in increasing e� ciency and productivity at workplace.

Name : Rakesh RawatDesignation : Account AssistantMonth : Feb’2020Branch : ChandigarhDepartment : F&ACategory of award : Functional Excellence

Name : Naresh SharmaDesignation : Junior AccountantMonth : June’ 2020Branch : HODepartment : AccountsCategory of award : Professional Excellence

Name : Reyasat AliDesignation : Junior Assistant Month : April’ 2020Branch : HODepartment : ITCategory of award : Professional Excellence

Employee of the month Award


• Multi Portal Management System for better execution of e auctions developed by IT Division : IT Division has designed a Multi Portal Management System for ensuring time precision up-to milliseconds for same auction running across multiple portals in real-time. Multi Portal Management System is a cloud based system for running e-auctions of same stock of Agri-Commodities simultaneously across multiple empanelled e-auction portals. This may help in achieving wider participation of bidders and may yield better price realization. The system is expected to be launched soon.

• Up gradation of IT Infrastructure: The infrastructure of Head O� ce and branches was upgraded by the division through procurement of new Desktops, Laptops and duplex Printers. AMC for old hardware was also renewed during the quarter.

New Sub O� ce to be opened in Sriganganagar to strengthen NAFED’s activities in RajasthanThe Executive Committee in its meeting held on 25th September, 2020 has taken a decision for opening of a sub-o� ce at Sriganganagar under the administrative control of Nafed Jaipur Branch. Rajasthan being a large state, the new o� ce would facilitate better administrative set up and e� ective monitoring of business operations of NAFED in the state of Rajasthan.

Employees undergo online trainings from reputed institutesThe ongoing COVID 19 Pandemic has not deterred the e� orts of NAFED in ful� lling the training requirements of

the employees. The health and safety of the employees has been the top most concern during the Pandemic. Complying with social distancing norms, yet not compromising on the training needs, NAFED continues to impart training to the employees of the Federation through online training programs.

Mr. Shankar Saran Srivastava, Manager, Mr. Shailendra Kumar, Manager and Ms Bhavya Anand, Manager underwent Five days International Online Programme on Development of Managerial Skills for Agricultural Co-operative and Rural Financing Institutions organized by CICTAB, Pune and hosted by Laxmanrao Inamdar National Academy for Cooperative Research and Development, Gurugram, Haryana during 21st to 25th September 2020.

An in house Iinduction cum Training programme was also organised on 7th July, 2020 for newly appointed Management Trainees following social distancing and other norms mandated under the Pandamic.

In-house orientation cum training programme of newly recruited Management Trainees.


NAFED bags annual order from Govt of Jammu and Kashmir for the supply of sugarNAFED has bagged annual order from Govt of Jammu and Kashmir for the supply of sugar. As per the terms, NAFED has to supply 750 MTs of sugar in each quarter. Supply of 765 MTs for the � rst quarter has been successfully completed and supplies for second quarter shall commence from 22nd October, 2020.

New o� ce of Consumer Marketing Division opened in Mohan Cooperative Area, New DelhiThe CMD branch of NAFED has been shifted to its new modern o� ce premises located at E-16/B1 Mohan Cooperative Industrial Estate, Mathura Road, New Delhi. The o� ce was inaugurated by MD, NAFED on 23rd September, 2020.


• Will Facilitate direct marketing, thus eliminating intermediaries leading to higher price realization by farmers

2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020

Main provisions:

• Will empower farmers to engage processors, wholesalers, aggregators, large retailers, exporters and others in a competitive environment. Price assurance will be given to the farmers even before the sowing of crops.

• Will shift the risk of market unpredictability from the farmer to the � nancially powerful sponsor. Due to prior price determination, farmers will be shielded from the volatility of market prices.

• Will provide the farmers access to modern technology, better seed, and other agri inputs

• Will mitigate cost of marketing and enhance the income of farmers

• Enable Government support to farmers for imbibing research and new technology

3. The Essential Commodities (Amendment) Bill 2020

Main Provisions:

• Regulation of food items: The government may regulate the production, supply, distribution, trade, and commerce of such essential commodities such as food including cereals, pulses, potatoes, onions, edible oilseeds, and oils, only under extraordinary circumstances. These include (i) war, (ii) famine, (iii) extraordinary price rise ( stock limits could be modi� ed on 100% rise for horticulture products and 50% rise of non-perishable agricultural food items) and (iv) natural calamity of grave nature.

The bills have faced strong protests from some corners alleging that they would hurt the earnings of farmers and are detrimental to their interests. The Government

The New farm Bill 2020: Myths and Reality

Hon’ble Prime Minister Shri Narendra ModiRef.: Tweet dated 20th September, 2020

Our agriculture sector is in desperate need of latest technology that assists the industrious farmers. Now, with the passage of the bills, our farmers will have easier access to futuristic technology that will boost production and yield better results. This is a welcome step.

The parliament of India passed three Agricultural Bills in September, 2020. The bills received approval from Hon’ble President of India on 27th September 2020, and became Act. The main provisions of the Bills are as follows:

1. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020

Main provisions

• Facilitate barrier-free inter-state and intra-state trade and business outside the physical boundaries of markets

• Farmers will not have to pay any cess or levy for sale of their

• An electronic trading platform for ensuring a seamless transparent trade

• In addition to mandies, farmers to enjoy the freedom to do trading at farm gate, cold storage, warehouse, processing units etc.


however maintains that the Bills would empower the farmers paving way to usher in prosperity amongst the farmers and the agriculture sector.

It is important to dispel the myths and misconception surrounding the Bills and establish facts as discussed below:

Myth: The bill will lead to agriculture land acquisition by Corporates and farmers will end up becoming labourers.

Facts: The bill prohibits sale, lease and mortgage of farmers’ land and ensures sponsors are prohibited from acquiring ownership rights or making permanent modi� cations on farmers’ land.

Myth: The bill does not provide any price guarantee for farmers. The practice of procuring grains at MSP by central agencies like FCI will end.

Facts: The bill ensures a price guarantee for farmers under the agreement and provision for a penalty in case of payment failure. Further, MSP is an independent structure which will not be impacted by the bill. The government will continue giving appropriate prices to farmers through the MSP mechanism.

Myth: The commission agents under APMC are veri� ed and payment is secured. The bill does not safeguard farmer payments.

Facts: The bill mandates every trader to make payment to the farmer on the same day or within maximum three working days.

Myth: Creating two market spaces, markets run by Agricultural Produce Market Committees (APMC) as well as new free trading markets, is disastrous.

Facts: Farmers will sell where they want and they will sell where there are better pro� t margins.

Myth: In interlocked markets, farmers depend on middlemen for loans. The reforms ignore these realities.

Facts: Middlemen stand between farmers and consumers. They take a big chunk of farmers’ incomes. The reforms will keep them out of the process. 10000 Farmer Producer organizations (FPOs) are coming to existence across the country. These FPOs will bring together small farmers and work to enforce a remunerative pricing mechanism for farm produce.

Myth: Under contract farming, farmers will be dictated by corporates and the former will not be able to � x prices according to their free will. In case of dispute, big companies will have their say. The bill does not provide a legal safety net for farmers against Corporates.

Facts: Under contract farming, farmers will have full power to determine prices for their produce. They will receive a payment within a maximum of 3 days. After signing the contract, farmers will not have to seek out traders.

The purchasing consumer will pick up the produce directly from the farm. In case of dispute, there will be no need to go to court time and again. The bill provides for a local dispute redressal mechanism where farmers can approach the concerned sub-divisional magistrate for deciding any disputes under farming agreement. The bill also ensures no action is initiated for recovery of any dues against the agricultural land of the farmer.

O� cers and Sta� of NAFED deeply mourn the sad and untimely demise of Shri T. Srinivasa, Senior Field Representative, Bangalore Branch on 13.08.2020 at Bangalore Hospital due to COVID 19. He was 54 years old and is survived by his wife, son and two daughters.

Mr. Srinivasa had joined NAFED at Bangalore Branch in the year 1993 after completing graduation from his native place at Kolar in Karnataka. He is remembered for his warm and cordial nature, hard work and dedication to duty.

NAFED conveys deepest condolences to the bereaved family and pray that God Almighty gives them strength and courage to bear this great loss, which is truly irreplaceable.

An amount of Rs. 40.00 Lacs has been paid to the family towards compensation as per policy approved by Board of NAFED , apart from other bene� ts.

Late. Sh. T. SrinivasaSFR, NAFED/Bangalore


Article/Features on NAFED published in magazines/journals during July to September 2020

AGRICULTURE TODAYJuly 2020 9AGRICULTURE TODAY July 20208

AND THE CaPTain AT ITS HELMA flourishing cooperative runs into a decade of huge losses Till the early 90s, NAFED was the sole canalising agency of GOI for the export of onion and niger seed. NAFED exported several other agri commodities to state agencies of countries like Sri Lanka, Mauritius, Maldives etc. The cooperative had a flourishing export business. After economic liberalization, NAFED faced challenges from private trade and global

Cover story Cover story

competition. Its export business suffered a steep decline. Its alternative business avenues were not successful. NAFED ventured into tie-ups. Encouraged by initial success, it went on a spree of extending un- monitored funds to private business associates without checks and controls. The banks lent without scrutiny, while the associates borrowed without collateral security. Soon the associates defaulted in payments and the banks sought

repayment of loans and interest. NAFED failed to honor its obligations to banks and plunged into deep financial crises!

Efforts were made to recover the amounts from the associates. Several paid up, but there were 29 defaulters against whom legal proceedings were initiated along with action on erring employees of NAFED. The debts kept mounting and the balance sheet stayed negative year after year. The morale within the organization plummeted and there was sharp exodus of employees through voluntary retirement and resignations. There seemed to be no hope for revival.

The management approached GOI for a financial bailout and submitted a revival package of Rs. 478 crore. Revival efforts began in 2015, and picked up momentum with the joining of the new Managing Director, Mr. Sanjeev Kumar Chadha. He took over the reins of NAFED in June 2016 at a time when the financials plummeted to net loss of Rs. 148.07 crore as on 31st March, 2016.

Strategy for revivalMr. Chadha faced the challenging task of

reviving an organization with the history of a decade of losses. He undertook the mission with gusto. He studied the NAFED ecosystem, and also the reasons for its downfall along with a detailed SWOT analysis. He swiftly rolled out the three-fold strategy for revival. The first strategy was to aggressively pursue the government for the revival package.

Second was to build the shaking morale of the employees. The third was to aggressively implement various business programs for generating income for the organization. The efforts yielded positive results.

Mr. Chadha believes that the aura of an organization depends on the happiness and motivation level of

Globally, one of the biggest challenges of the business world has been to turn around a loss-making establishment. If the story of the turnaround of National Agricultural Cooperative Federation (NAFED) was a Western phenomenon, acclaimed books would have been written on it. The turnaround would have been the subject of study in eminent management institutions. Success is achieved through teamwork, and it is the man in the driving seat who makes the turnaround possible. Mr Sanjeev Kumar Chadha, the Managing Director of NAFED, led one of India’s largest agricultural institutions from years of acute survival crisis to healthy profits and a booming work culture. The transformation in NAFED’S fortunes benefitted lakhs of farmers and thousands of employees. In its July edition, Agriculture Today profiles the man whose Can-Do attitude has scripted an enviable success story.

THE AMAzINg

of NAfEDturNArouND

July 2020

Managing Director Mr Sanjeev Kumar Chadha visiting two procurement centers of NAFEDManaging Director Mr Sanjeev Kumar Chadha visiting two procurement centers of NAFED

Certified Seed Production is one of the important business initiatives of NAFED. Mr. Chadha on a visit to NAFED’s Seed Production Unit at Indore


the employees. With his wisdom and foresightedness, he undertook several measures for improving their morale. The business plan for revenue generation was launched. The strategy was to focus on NAFED’s core competence – procurement and marketing of agricultural commodities. New zero risk business initiatives were implemented to maximize turnover, leading to profits and early break. NAFED was able to pay back its liabilities to the banks.

GOI accepted NAFED’s proposal for creation of buffer stock of pulses up to 20 lakh MT. NAFED commenced procurement of oilseeds and pulses under Price Support Scheme. It also made all-time record procurement of food grains. The employees worked day and night, even devoting their holidays on Saturdays to achieve the targets.

New initiatives bear fruit Mr Chadha’s new initiatives like supply of pulses to Army, Central Para Military Forces (CPMF) and states for utilization under their various welfare schemes; creation of International Trade Division which successfully organized shipments of food/humanitarian aid to various countries on behalf of GOI and development of tea business proved to be game changers for NAFED’s fortunes.

The income generated through these businesses helped in one-time settlement with lender banks and made NAFED a debt-free organization. The federation did not take any funds from GOI and was able to fulfill all obligations through its own income generation.

NAFED’s management focused on technology up gradation, launch of e-Samriddhi procurement portal, mobile application system, introduction of efficient accounting software package, computerization etc. The emphasis was on using technology for improving work efficiency and bringing about transparency in operations. The procurement system in the mandis was computerized. This helped in accelerating the pace of procurement while exercising greater checks and controls. The quick decision making and positive approach of Mr. Chadha gave NAFED the direction it needed. He demonstrated exemplary leadership and led the team from the front.

Key responsibilities given by GOIThe remarkable performance and professionalism of NAFED was appreciated by GOI. In 2019, GOI directed NAFED to implement the Market Intervention Scheme for procurement of apples in Kashmir valley. NAFED

commenced procurement despite serious challenges like security concerns and communication issues. The operation was immensely successful in providing remunerative prices to apple cultivators of the valley. In 2021, NAFED plans to introduce the Quick Response Code (QR Code) with a view to trace and track the procurement of apples as per variety and grades, and also track the logistics like sale and storage.

Another challenging assignment given to NAFED by GOI is the vaccination of livestock under the National Animal Disease Control Programme (NADCP), to eradicate FMD and Brucellosis in livestock. The program is valued at Rs 12,652 crore. It shall continue for five years till 2024, and is funded by GOI. Being the Programme Logistics agency (PLA), NAFED is responsible for the procurement of FMD vaccines, Brucellosis vaccines and eartags, and ensuring delivery in every district of the country. The implementation is in progress in several states.

NAFED’s endeavour is to continue its journey for the service of the farmers and contribute to the PM’s vision of doubling farmers’ income. With a highly motivated staff led by a decisive leader, NAFED is equipped to strive for supreme excellence.

Cover story

Mr. Sanjeev Kumar Chadha visiting NAFED’s groundnut procurement center in Gujarat

Feature on NAFED published in “Agriculture Today” July 2020 Edition


Interview of MD NAFED published in “Agriculture Today” July 2020 Edition


In recent times, despite the severe COVID disruptions, NAFED continued its procurement activities without fail. Please tell us about the major procurements undertaken by NAFED during the COVID period, and the challenges faced therein.The COVID pandemic coincided with the Rabi harvesting and procurement season. Despite the pandemic and lockdown conditions, NAFED commenced procurement of Rabi crops. This work had begun in February 2020 and continued with proper planning and safeguards. The number of procurement centres was doubled to reduce the distance to be travelled by farmers to sell their produce. The procurement is still continuing. As on June 13, NAFED has procured Rs 24.61 lakh MT of Rabi oilseeds, pulses valuing Rs 11,672 crores in MP, Rajasthan, Gujarat, Karnataka, Telangana, Andhra Pradesh, UP, Maharashtra and Haryana. The procurement includes 7.57 lakh MT oilseeds valuing Rs 3,359 crores and 24.61 lakh MT of pulses valuing Rs 11,672 crores.

NAFED was also undertaking procurement of Kharif 2019 oilseeds and pulses under the Price Support Scheme since September 2019. The Kharif procurement was continued. 14.03 lakh MT of oilseeds and pulses valuing Rs 7,783 crore was procured. This includes 1.48 lakh MT procurement during lockdown period. Wheat procurement is on for the rabi season. 190121.94 MT of wheat has been procured for Rs 36611.83 lakh. The paddy procurement for the previous Kharif season stood at 386088.49 MT, valuing Rs 70108.32 lakh.

The Centre has announced major reforms to realize the full potential of the agriculture sector. Several states have initiated important measures to address agriculture. What changes do you expect in the Indian food and agriculture sector in the coming times?A lot of work has been done in the pulses sector, leading to the achievement of near self sufficiency in pulses production for the first time. The NADCP programme with funding of Rs. 12652 crores from the Government is being implemented by NAFED for vaccination of livestock

across the country. The programme aims at eradication of FMD and Brucellosis in the Livestock. The overall aim is to improve the productivity of dairy sector which in turn will improve the farmers’ income. Creation of additional post harvest infrastructure at point of production will improve the shelf life of produce, prevent distress sale by farmers and lead to employment generation.

All these measures will bring about prosperity in rural economy, which in turn will result in creation of job opportunities in rural areas.

The 2020 UN Global Report on Food Crises said that due to COVID, a global recession will majorly

disrupt food supply chains. Do you expect disruptions in the Indian food supply chain in the coming months?The Government of India has taken timely steps to rule out any possibility of food crises or disruption of food supply chain in the short as well as long run. The pandemic occurred in India at the time of the crucial Rabi harvesting and procurement season. During the lockdown, suitable relaxations were given to essential commodities and the farm sector in the orders issued by MHA, due to which the Rabi harvest as well as the food supply chain has not been impacted. There is a record wheat production in the country this year and the entire crop has been harvested without any problems. Private trade is also happening. Government agencies like NAFED and FCI timely entered the market

and are making purchases from the farmers under PSS. NAFED is undertaking procurement of oilseeds, pulses and wheat under PSS. In states like Rajasthan, there was heavy procurement during the lockdown, even surpassing last year’s procurement levels at several centers.

At the same time the Government is arranging supply of food to the poor throughout the country under the PMGKY announced by the Hon’ble Prime Minister . NAFED is supplying pulses to the states under this scheme for onward distribution to the poor through the state governments. As on date NAFED has supplied 6.25 lakh MT pulses to states/UTs.

I do not foresee any disruptions in our food supply chain. I believe that despite the vastness and huge

Mr Sanjeev Kumar Chadha,

the Managing Director of NAFED,

led one of India’s largest agricultural

institutions from years of acute

survival crisis to healthy profits and a

booming work culture

In my efforts to revive NAFED, I got full

cooperation of GOI, the Board of Directors, then

chairman Shri V. R. Patel, the lending banks, senior officers and employees. Without their trust and support this would not

have been possible. I am also happy that in the revival process we did not borrow any money from anyone for paying

off our dues. Entire money was paid from

our own funds

Kumar Chadha,the Managing

Director of NAFED, led one of India’s

largest agricultural institutions from

years of acute survival crisis to

healthy profits and a booming work culture

I believedwe could...

And we did it !!

13

Cover story Cover story


During the last five years, around 53 lakh farmers benefitted through procurement of oilseeds and pulses under PSS by NAFED. Lakhs of farmers have benefitted through NAFED’s procurement of other commodities like wheat, paddy, onion, spices, tea, etc. The revival has given a new lease of life to primary cooperative societies all across the states and UTs, benefitting their employees as well as member farmers

benefitted through procurement of oilseeds and pulses under PSS by NAFED. Lakhs of farmers have benefitted through NAFED’s procurement of other commodities like wheat, paddy, onion, spices, tea, etc. The revival

societies all across the states and UTs, benefitting their

population, our country has very strong systems in place at the grass root level which are capable of addressing any contingency situations including the prevailing pandemic. The government has taken appropriate measure to tackle the situation. The kind of work presently being undertaken by government agencies like NAFED during this difficult time is overwhelming.

You are credited with the turnaround of NAFED. How did NAFED achieve this incredible and unprecedented success?When I joined NAFED I did not know much about the organization, except that it was in a financial mess. When I took over the charge, I came to know that the loss making period was from 2007-08 onwards. Prior to that, the organization had profit making history of decades since its inception, which I felt was commendable for a cooperative organization. The losses were attributed to irregularities done by some individuals in a particular business venture (tie-up business), for which litigations were in progress. There was nothing wrong with the core business of the organization. SWOT analysis revealed that the organization had great inherent strengths

which could be tapped to turn it around. I have never shirked from accepting

challenges and decided to take the bull by the horns, making it my mission to bail NAFED out of its financial crises.

For making the turnaround, it was important to have multi-pronged approach focusing on crucial aspects related to financials, human resource, business and also getting the support of the government. The work force is the most important pillar of any organization. I realized that the scanty work force left in NAFED (most had opted for VRS) was extremely dedicated and needed a spark to come alive. The turnaround could not have been possible without motivating the team.

Various HR measures were implemented to motivate the workforce which included promotions, implementation of seventh pay commission and providing better work environment. Several zero risk business initiatives were implemented with the support of the Government. The revival package for settlement of outstanding dues with banks was vigorously pursued and was finally approved by the government. The breakthrough was the signing of One Time Settlement (OTS) with the banks on 27th March, 2018. It

was agreed that NAFED would pay Rs. 220 crores in phases to the lender banks, while its property at Lawrence Road, Delhi valued at Rs. 254 crores would be transferred to Central Bank of India. The shortfall of Rs. 4 crores would be released by GOI.

All the above initiatives were implemented simultaneously. The entire workforce of NAFED led by the senior officers was enthused and dedicated to procurement of oilseeds and pulses under PSS. All time record procurement of oilseeds, pulses, wheat and paddy generated a good income for the federation. During 2017-18, around 27 Lakh MT of Pulses and Oilseeds valuing around Rs. 13,596 crores ; 1,14,653 MT of Paddy valued at Rs 189.32 crores and 61,499 MTs of Wheat valued at around Rs 100 crores was procured. Also 3.45 lakh MT of pulses valuing Rs. 1614 crores was purchased for creation of buffer stock of pulses on the direction of the Government.

The volumes procured were unprecedented in the history of NAFED. The entire workforce worked tirelessly to achieve the targets. In the subsequent years also, NAFED continued procuring voluminous stocks which not only benefited the farmers, but also generated

good income for the federation. When I joined NAFED in September 2017, the balance sheet showed net loss of 148 crores in FY 2015-16. The year 2016-17 closed with a loss of Rs. 40.75 crores after settling the outstanding dues of banks. Thereafter we closed at profit of Rs 226.81 crores during 2017-18 and Rs 279.31 crores in 2018-19.

I am happy that in my efforts to revive the federation, I got full cooperation of GOI, NAFED’s Board of Directors, then chairman NAFED Sh. V. R. Patel, the lending banks, senior officers and employees of NAFED. Without their trust and support this would not have been possible. I am also happy that in the revival process we did not borrow any money from anyone for paying off our dues. Entire money was paid from our own funds.

Media reports say that the NAFED turnaround benefited about 20 lakh farmers and thousands of employees. In how many sectors does NAFED operate now? Approximately how many people in how many states does NAFED impact now through its multiple initiatives?The revival of NAFED has benefitted lakhs of farmers in all states and union territories across the country. During the last five years, around 53 lakh farmers befitted merely through procurement of oilseeds and pulses under PSS. Lakhs of farmers have also befitted through NAFED’s procurement of other commodities like wheat, paddy, onion, spices, tea, etc. The revival has given a new lease of life to primary cooperative societies all across the states and union territories, benefitting their employees as well as member farmers.

NAFED operates mainly in agriculture sector for the farmers. We also undertake other businesses like consumer marketing, organic farming, seed production and bio-fertlizers. We have ventured into an ambitious project for production of Bio-CNG from agricultural waste. We plan to set up Bio CNG plants across the country in association with Indian Oil, the respective state governments and our

technical support partners.

At the Global Pulse Day celebrations hosted by NAFED in February, many speakers expressed concern about the shrinking space for pulse cul-tivation in India and also the fall in per capita pulses consumption, as compared to a few de-cades ago. How is NAFED addressing these chal-lenges?The Government has been pushing pulse production to bridge the gap between demand and supply through domestic production instead of imports. The policy initiatives and strategies adopted in the recent past along with remunerative prices fetched by the farmers through voluminous procurement of pulses by NAFED under PSS during the last five years or so, have given a big boost to pulses cultivation in the country.

NAFED has played a crucial role in the pulses sector through its price support operations, creation of buffer stock of pulses and supply of pulses to states for distribution to the poor at subsidized prices below the market rates under various schemes of the state governments. The pulse operations of NAFED have contributed greatly to attainment of near self sufficiency in pulses in the country, keeping a check on the market prices and addressing to the nutrition sufficiency of the consumers, particularly the poor by making pulses available at affordable prices.

What role can markets play in doubling farmers’ income?Markets play an extremely crucial role in improving the incomes of farmers because it is the markets which drive the demand. The reforms recently announced by the government will create an ecosystem to promote barrier-free inter-state and intra-state trade. This shall create additional trading opportunities outside the APMC markets to help farmers get better prices due to additional competition. This will supplement the existing MSP procurement system, which primarily aims at providing a stable income to farmers.

Cover story

Mr. Chadha visiting APMC Gulburga, Karnataka


Feature on NAFED published in “INDIAN EXPRESS” July 2020 Edition

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An Earnest Request...An Earnest Request Public Relation Division has exercised due diligence and care while compiling and printing information/data/ photographs in this NAFED News.

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