- The Cabinet Committee on Economic Affairs on February 28, 2018 approved the regularization and extension of Govt. Guarantee provided to lender Bank for providing credit limit to National Agricultural Cooperative Marketing Federation of India (NAFED) to Rs.19,000 crore from earlier Rs.9,500 crore for undertaking procurement operation of pulses and oilseeds under Price Support Scheme (PSS) and to Small Farmers Agri-Business Consortium (SFAC) for Rs. 45 crore for meeting their existing liability and settlement of extant claims.
- These Government Guarantees are provided for a period of five years i.e. till 2021-22 by Govt. of India and with waiver of 1% Government Guarantee fee.
- Reason: As the market price of almost all pulses and oilseeds are ruling below Minimum Support Price (MSP) as notified by Govt. of India, provision of Govt. Guarantee will help in protecting the farmers producing these commodities from making distress sales during the peak arrival period and to provide remunerative prices with a view to encourage higher investment and production and also to safeguard the interest of consumer by making available supplies at reasonable price with low cost of intermediation.
About Price Support Scheme
- In order to help the farmers in getting remunerative prices for their produce and with a view to encourage higher investment and enhance production and productivity of a commodity, Government of India declares Minimum Support Price (MSPs) for 25 notified agricultural commodities for each Kharif & Rabi crop season.
- Nafed is one of the central Nodal Agencies for procurement of 16 notified agricultural commodities of Oilseeds, Pulses and Cotton under Price Support Scheme (PSS) and continues to be the sole central Nodal Agency for procurement of Milling, Ball Copra and De-husk Copra under Price Support Scheme.
About NAFED
- National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) was established on 2nd October 1958.
- Nafed is registered under the Multi State Co-operative Societies Act. Nafed was setup with the object to promote Co-operative marketing of Agricultural Produce to benefit the farmers.
- Agricultural farmers are the main members of Nafed, who have the authority to say in the form of members of the General Body in the working of Nafed.
