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Current Affairs

Union Minister Amit Shah directs NAFED and NCCF to procure pulses and oilseeds directly from farmers

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On 23 June 2026, Union Cooperation Minister Amit Shah instructed the National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers’ Federation (NCCF) to procure pulses and oilseeds directly from farmers, bypassing middlemen. This initiative aims to ensure minimum support prices reach farmers directly by facilitating direct payments into their bank accounts. A two-year target, until June 2028, has been set for implementation. India currently imports significant quantities of pulses and edible oils, and this move supports self-reliance and reduces import dependency. Alongside, four digital initiatives were launched to promote transparency and efficiency in agricultural marketing, including the Nafex.in auction platform and the DRISHTI inventory management system.

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Key Facts

  • Announcement date: 23 June 2026
  • Union Cooperation Minister: Amit Shah
  • Organisations involved: National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers’ Federation (NCCF)
  • Focus commodities: Pulses and oilseeds
  • Objective: Direct procurement from farmers to eliminate intermediaries and ensure farmers receive Minimum Support Prices (MSP)
  • Direct payment to farmers' bank accounts
  • Implementation deadline: 2 years (by June 2028)
  • India’s import volumes: 6-7 million tonnes of pulses; 15-16 million tonnes of edible oils annually
  • NAFED's growth: Turnover climbed from ₹500 crore earlier to ₹30,000 crore in FY25; target turnover ₹50,000 crore
  • Four digital platforms launched simultaneously: Nafex.in (digital auction), DRISHTI (inventory & ERP system), an enterprise management ERP system, and the NAFED Kalyan Fund (scholarship program for farmers’ children)

Background & Context

NAFED and NCCF are pivotal cooperative agencies in India responsible for supporting farmers and managing agricultural marketing and procurement. Despite the rise in production of pulses and oilseeds, farmers often did not realize the full benefits of MSP due to presence of intermediaries and delayed payments. India continues to depend heavily on imports to meet domestic demand for these commodities. The government aims to enhance farmer income and reduce import reliance by removing middlemen from supply chains, facilitated by digital platforms for transparency and efficiency.

Why This Matters for Exams / Exam Relevance

This announcement is critical for competitive examinations covering agriculture, cooperative sector policies, and current affairs. Key exam-relevant points include the Minister’s directive date, the roles of NAFED and NCCF, the scope of procurement, and new technology initiatives (Nafex.in and DRISHTI). Understanding government policies addressing farmer welfare and self-reliance in agriculture is vital for descriptive and objective questions.

Points to Remember

  • Amit Shah as Union Cooperation Minister led the directive on 23 June 2026.
  • NAFED and NCCF are mandated to procure pulses and oilseeds directly from farmers by June 2028.
  • Direct payments will be credited into farmers’ bank accounts to avoid delays and intermediaries.
  • India imports large quantities of pulses and edible oils; this initiative aims to reduce such dependence.
  • Four digital initiatives launched: Nafex.in (for transparent auctions), DRISHTI (inventory and ERP), an enterprise management system, and NAFED Kalyan Fund (scholarship scheme).
  • NAFED’s turnover increased significantly from ₹500 crore earlier to ₹30,000 crore in FY25 with a target of ₹50,000 crore.
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