NAFED and NCCF to Procure Pulses & Oilseeds Directly from Farmers: Government Launches New Farmer-Centric Procurement System

NAFED and NCCF to Procure Pulses & Oilseeds Directly from Farmers: Government Launches New Farmer-Centric Procurement System

India has taken another significant step towards strengthening its agricultural marketing system by introducing a direct procurement mechanism for pulses and oilseeds. The initiative aims to ensure that farmers receive fair prices without the involvement of middlemen while making the procurement process more transparent and technology-driven.

The new system was announced under the guidance of the Union Minister of Cooperation, who directed the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers' Federation (NCCF) to purchase pulses and oilseeds directly from farmers.

This decision is expected to improve farmers' income, enhance transparency in agricultural procurement, and promote digital governance in the cooperative sector.

Why is this Initiative Important?

For years, many farmers have depended on intermediaries to sell their produce, often receiving lower prices due to multiple layers of commission and delays in payments. The new procurement model seeks to solve these challenges by:

• Purchasing pulses and oilseeds directly from farmers.
• Transferring payments directly into farmers' bank accounts through Direct Benefit Transfer (DBT).
• Reducing the role of middlemen.
• Increasing transparency and accountability.
• Providing farmers with faster and secure payments.

The entire implementation is targeted for completion by June 2028, giving the agencies a two-year roadmap to establish the new system nationwide.

Role of NAFED

The National Agricultural Cooperative Marketing Federation (NAFED) is one of India's leading cooperative organizations responsible for agricultural procurement and marketing. Its major functions include:

• Procurement of agricultural commodities
• Price support operations
• Market intervention schemes
• Promotion of cooperative marketing
• Supporting farmers through better market access

NAFED plays a crucial role in maintaining price stability and ensuring remunerative prices for agricultural produce.

Role of NCCF

The National Cooperative Consumers' Federation (NCCF) is another important national cooperative institution working in consumer welfare and procurement activities. Its responsibilities include:

• Procurement of essential commodities
• Consumer distribution services
• Support during market shortages
• Cooperative marketing initiatives

Together, NAFED and NCCF will now directly purchase pulses and oilseeds from farmers under the new procurement framework.

Major Digital Initiatives

Launched by NAFED On 23 June 2026, four important digital and welfare initiatives were launched in New Delhi to modernize agricultural procurement and cooperative management.

Nafex.in

Nafex.in is an online digital auction platform developed for selling procured pulses and oilseeds.

Key Features

• Transparent online bidding
• Better price discovery
• Digital auction process
• Improved efficiency in commodity sales

DRISHTI

DRISHTI is an advanced inventory management system designed for monitoring the storage and movement of pulses and oilseeds.

Benefits 

• Real-time inventory tracking
• Better warehouse management
• Reduced storage losses
• Improved stock monitoring 

Enterprise Resource Planning (ERP)

ERP is an integrated digital management system introduced to streamline organizational administration. It helps in:

• Financial management
• Procurement management
• Human resource management
• Data integration
• Operational efficiency

NAFED Kalyan

NAFED Kalyan is a scholarship programme created to support the children of farming families. The programme focuses on:

• Higher education assistance
• Career development support
• Educational empowerment of rural youth

This initiative reflects the government's broader commitment to improving the socio-economic well-being of farming communities.

How Will Farmers Benefit?

The new procurement model offers several direct benefits to farmers.

• Direct Payment through DBT: Payments will be credited directly to farmers' bank accounts, ensuring timely and transparent transactions.
• Elimination of Middlemen: Removing intermediaries helps farmers receive a larger share of the market price.
• Better Price Realization: Direct procurement ensures fair and competitive prices for agricultural produce.
• Digital Transparency: Online platforms and digital management systems reduce corruption and improve accountability.
• Stronger Cooperative Ecosystem:  The initiative strengthens India's cooperative movement while making agricultural marketing more efficient.

Quick Revision Points

Conclusion

The Government's decision to empower NAFED and NCCF with direct procurement responsibilities marks an important reform in India's agricultural marketing system. By combining direct farmer procurement, DBT-based payments, and digital platforms like Nafex.in, DRISHTI, and ERP, the initiative aims to create a more transparent, efficient, and farmer-friendly procurement ecosystem. Alongside the NAFED Kalyan scholarship programme, these measures demonstrate a holistic approach to supporting farming families and strengthening the cooperative sector.

For competitive exam aspirants, this development is an important current affairs topic covering agriculture, cooperatives, digital governance, and rural development.