Amit Shah directs NAFED, NCCF to bypass middlemen, buy pulses and oilseeds directly from farmers
GS3Economy · S&T · Environment · Security· MSP, procurement, PDS & food security· Prelims + Mains·
Why in news
Union Minister Amit Shah directed NAFED and NCCF to bypass middlemen and procure pulses and oilseeds directly from farmers to enhance self-reliance.
Background
India currently imports 6-7 million tonnes of pulses and 15-16 million tonnes of edible oils annually. The initiative mandates a two-year deadline for direct procurement and immediate payment to farmers by cooperatives.
Facts for Prelims
- BodyNAFED: National Cooperative For Agriculture Production, a body under the Ministry of Cooperation.
- BodyNCCF: National Cooperative Consumers' Federation of India, involved in procurement and distribution.
- FactIndia's annual pulse imports range between 6-7 million tonnes.
- FactIndia's annual edible oil imports range between 15-16 million tonnes.
For Mains
Q. Discuss how direct procurement by cooperatives can mitigate the exploitation of farmers by intermediaries and contribute to India's goal of self-reliance in essential commodities.
Dimensions to cover in your answer
- Market distortion: Middlemen capture significant value margins, reducing the effective price realized by small and marginal farmers.
- Institutional capacity: Need for NAFED and NCCF to scale up procurement infrastructure to handle high-volume, multi-state logistics.
Keywords: Self-reliance · Middlemen exploitation · Direct procurement · Cooperative model · Import substitution
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