Union Cooperation Minister Amit Shah on Tuesday launched the National Agricultural Cooperative Marketing Federation (Nafed)'s digital auction platform Nafex.in, enabling transparent auctioning of procured pulses and oilseeds. Nafed had previously relied on private platforms such as mjunction, NEML, and e-tech for these auctions. Shah also announced that the National Cooperative Consumers’ Federation (NCCF) would follow suit with a similar platform.
Direct Procurement Mandate
Shah urged Nafed and NCCF to procure pulses and oilseeds directly from farmers to ensure that maximum price benefit reaches growers, bypassing middlemen. He observed that despite rising output of pulses and oilseeds in recent years, self-sufficiency remained elusive because minimum support prices (MSPs) were not reaching farmers. The minister fixed a two-year deadline for both cooperatives to fully pass on MSP benefits, enabling farmers to sell directly without intermediaries.
India's Import Dependence
India currently imports 6-7 million tonnes (mt) of pulses and 15-16 mt of edible oils annually to bridge the production-demand gap, according to Shah. Nafed and NCCF serve as the Centre's nodal agencies to ensure farmers of oilseeds and pulses receive MSP when market rates fall below the benchmark prices. Union Agriculture Minister Shivraj Singh Chouhan, addressing the gathering, called for self-reliance in pulses and oilseeds, stating that the government already procures three varieties of pulses at remunerative prices.
Nafed's Financial Turnaround
Shah recalled that Nafed faced a severe financial crisis in 2013, requiring government intervention through the price support scheme. Since then, the cooperative has staged a strong recovery:
| Metric | FY2019-20 | FY2025 | Target (2 years) |
|---|---|---|---|
| Annual turnover | ₹20,000 crore | ₹30,000 crore | ₹50,000 crore |
| Net profit | — | ₹500 crore | — |
| Farmer coverage | — | 76 lakh farmers | — |
The minister suggested Nafed target a turnover of ₹50,000 crore in the next two years.
Additional Initiatives
Shah also launched three other Nafed initiatives:
- Drishti: A digital inventory management and ERP platform, coupled with a real-time data analysis tool to ensure transparent stock management.
- Nafed Kalyan Fund: A fund to support farmers' children in their careers, for which Nafed will earmark 1% of its profit.
- Enterprise Resource Planning (ERP) system: An integrated software platform to manage and automate core business operations.
Implications for Commodity Markets
The shift to Nafed's own digital auction platform is expected to enhance transparency in pricing and reduce the role of intermediaries, potentially improving price discovery for domestic pulses and oilseeds. For traders and procurement teams, this could mean more predictable government procurement volumes and faster access to auction data. However, the immediate price impact will depend on how quickly farmers adopt direct selling and how successfully the platform reduces the current import dependence. The two-year deadline suggests a structural change that could gradually lower India's reliance on imported pulses and edible oils, altering long-term demand patterns for global suppliers. Market participants should monitor adoption rates of Nafex.in and NCCF's upcoming platform, as well as any adjustments to MSPs.
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