How is NAFED different from FCI, SFAC, NABARD and NCDC?

All five are Government of India institutions in the agri-marketing / rural-finance space but they have distinct legal personalities and mandates. FCI (Food Corporation of India) is a statutory corporation under the Food Corporations Act, 1964 responsible for MSP procurement of paddy and wheat, buffer-stock operations for the National Food Security Act and TPDS distribution. NAFED is a multi-state cooperative society under the MSCS Act, 2002 responsible primarily for MSP procurement of pulses, oilseeds and copra under PM-AASHA-PSS and for Price Stabilisation Fund operations. SFAC is a registered society under DA&FW focused on agri-business promotion, matching-equity grants to Farmer Producer Companies and running e-NAM. NABARD is a statutory apex development bank under the NABARD Act, 1981 focused on rural refinance, RIDF and FPO refinance. NCDC is a statutory corporation under the NCDC Act, 1962 focused on term-loan finance to cooperatives. In the 10,000 FPO scheme NAFED is one of the additional implementing agencies alongside NDDB, TRIFED and NCDFI, complementing the three lead agencies (NABARD, SFAC, NCDC).

What role does NAFED play under the Price Support Scheme (PSS) of PM-AASHA?

Under the Price Support Scheme (PSS) component of the PM-AASHA umbrella (approved by the Union Cabinet in September 2018 and made a continuing scheme in September 2024 with a ₹35,000 crore outlay), NAFED is the principal Central Nodal Agency for physical procurement of pulses (tur, chana, masur, moong, urad), oilseeds (mustard, groundnut, soybean, sunflower, safflower) and copra at Minimum Support Price. When the wholesale market price of a notified crop falls below MSP and the state government formally requests procurement, NAFED — with FCI and SFAC in supporting roles — opens procurement centres at state APMC mandis and PACS (Primary Agricultural Cooperative Society) collection points. Payment is released via Direct Benefit Transfer (DBT) to the Aadhaar-linked bank account of the registered farmer, with a scheme target of 72 hours from procurement. The procurement ceiling is 25% of state production of the notified crop (raised to 40% in specific seasons by special Cabinet approval).

What is the Price Stabilisation Fund (PSF) and NAFED's role in it?

The Price Stabilisation Fund (PSF) is a Central Sector scheme originally set up in 2014-15 under the Department of Agriculture & Cooperation and later transferred to the Department of Consumer Affairs — designed to protect consumers from spikes in prices of essential agri-horticulture commodities (primarily onion, potato and pulses) by maintaining a strategic buffer. NAFED is one of the two designated procurement agencies for the PSF (alongside NCCF, the National Cooperative Consumers' Federation), tasked with procuring onion, potato and pulses directly from farmers or through cooperative channels at market-clearing prices during peak arrival, storing them under scientific conditions, and releasing them in deficit-price windows to cool retail prices. The PSF is administered from 2024 through the PM-AASHA continuation architecture, with the Market Intervention Scheme (MIS) folded in.

Who owns and governs NAFED?

NAFED is a multi-state cooperative society — its members are state-level cooperative marketing federations, primary agricultural cooperative marketing societies, cooperative processing societies, farmer service societies and other cooperative institutions from across the country. Governance is exercised by a Board of Directors elected by the general body from member cooperatives, chaired by an elected Chairman. The Government of India, through the Ministry of Cooperation, nominates certain directors and appoints the Managing Director as the chief executive. Day-to-day operations are run by the Managing Director from the NAFED headquarters at NAFED House, Ashram Chowk, New Delhi, through a national network of regional and branch offices, state coordinators and empanelled PACS.

How can a farmer or FPO sell to NAFED?

For MSP procurement under PSS, the farmer registers through the state procurement portal (typically e-NAM-linked) or with the local PACS, presents land records and an Aadhaar-linked bank account, and delivers pulses / oilseeds / copra against Fair Average Quality (FAQ) grading at the NAFED-notified procurement centre at the state APMC mandi or PACS collection point. Payment flows via DBT to the Aadhaar-linked bank account with a 72-hour SLA target. For PSF buffer procurement (onion, potato, pulses), NAFED procures directly at market-clearing prices at APMC mandis and through cooperative marketing societies. For FPOs — registered NAFED-cluster FPOs under the 10,000 FPO scheme are handheld through their CBBO for procurement scheduling, quality grading and market linkage; other FPOs can approach NAFED regional offices for tenders, tie-ups and Bharat brand supply arrangements. NAFED tender notices and procurement schedules are published on nafed-india.com.

NAFED — National Agricultural Cooperative Marketing Federation of India: PSS Procurement, Price Stabilisation Fund, Bharat Brand & Ministry of Cooperation Apex

The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) is the apex national cooperative marketing federation of India — registered on 2 October 1958 (Gandhi Jayanti) under the then Bombay Cooperative Societies Act, and today governed by the Multi-State Cooperative Societies Act, 2002. Since 6 July 2021, NAFED sits under the newly-created Ministry of Cooperation, Government of India (previously under the Department of Agriculture & Cooperation, DA&FW). Headquartered at NAFED House, Ashram Chowk, New Delhi, NAFED is a federation of state-level cooperative marketing federations, primary agricultural cooperative marketing societies and other cooperative institutions — the country's principal cooperative-sector delivery vehicle for MSP procurement of pulses, oilseeds and copra under the Price Support Scheme (PSS) of PM-AASHA. For the broader map of farmer-welfare programmes, see our India government schemes for farmers reference.

Origin and legal basis

NAFED was registered on 2 October 1958 at the initiative of the Government of India and a group of state cooperative marketing federations — with the specific object of organising, promoting and developing cooperative marketing of agricultural produce and inputs across India. In the early decades it operated as a national cooperative under the Bombay Cooperative Societies Act, then under the Multi-State Cooperative Societies Act, 1984, and today under the Multi-State Cooperative Societies Act, 2002— the statutory framework that governs cooperative societies with members across more than one state. Its parent ministry has shifted with the government's cooperative-policy architecture: it was under the Department of Agriculture & Cooperation of the Ministry of Agriculture & Farmers Welfare until 6 July 2021, when the newly-created Ministry of Cooperation — under which the entire cooperative-sector portfolio (including NAFED, NCDC, NCCF and NCUI) was reorganised — took charge.

Mandate at a glance

Cooperative marketing of agricultural produce — organising bulk procurement, aggregation, grading, storage and marketing of agricultural produce on behalf of member cooperatives, PACS and their farmer members.
MSP procurement under PSS — principal Central Nodal Agency for physical procurement of pulses, oilseeds and copra at MSP under the Price Support Scheme of PM-AASHA.
Price Stabilisation Fund (PSF) buffer — designated procurement and buffer agency (with NCCF) for onion, potato and pulses under the Department of Consumer Affairs PSF operations.
Bharat brand retail — one of the three designated retail agencies (with NCCF and Kendriya Bhandar) for the Bharat Atta, Bharat Dal, Bharat Rice and Bharat Moong retail intervention.
Cooperative import and distribution — canalised import of pulses, oilseeds and edible oils as notified by the central government from time to time, and their distribution through cooperative channels.
FPO handholding — additional implementing agency for the Central Sector Scheme for Formation and Promotion of 10,000 FPOs.

Flagship operational roles

Price Support Scheme (PSS) procurement under PM-AASHA

NAFED is the principal Central Nodal Agency for physical procurement of pulses (tur, chana, masur, moong, urad), oilseeds (mustard, groundnut, soybean, sunflower, safflower) and copra at MSP under the Price Support Scheme component of PM-AASHA. When the wholesale market price of a notified crop falls below the Minimum Support Price announced by the Union Cabinet on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and the concerned state government formally requests procurement, NAFED — with FCI and SFAC in supporting roles — opens procurement centres at state APMC mandis and Primary Agricultural Cooperative Society (PACS) collection points. Farmers register through the state procurement portal (typically e-NAM-linked) or with their local PACS, present land records and an Aadhaar-linked bank account, and deliver produce against Fair Average Quality (FAQ) grading at MSP. Payment flows via Direct Benefit Transfer (DBT) to the Aadhaar-linked bank account with a scheme target of 72 hours from procurement.

The procurement ceiling under PSS is 25% of state production of the notified crop, raised to 40%in specific seasons by special Cabinet approval. In seasons of steep market weakness — such as tur and chana in several rabi seasons of the last decade — NAFED's PSS procurement has crossed several lakh tonnes for a single commodity, forming the price floor that anchors farmer expectations for the coming sowing cycle.

Price Stabilisation Fund (PSF) buffer operations

Under the Price Stabilisation Fund (PSF) — a Central Sector scheme originally set up in 2014-15 under the Department of Agriculture & Cooperation and later transferred to the Department of Consumer Affairs, and from 2024 administered through the PM-AASHA continuation architecture (with the Market Intervention Scheme, MIS, folded in) — NAFED is one of the two designated procurement agencies for the buffer of onion, potato and pulses, alongside NCCF (National Cooperative Consumers' Federation of India). The operating model is straightforward: procure from farmers or through cooperative channels at market-clearing prices during peak arrival, store under scientific conditions (cold-chain for onion / potato, ambient warehouses for pulses), and release in deficit-price windows to cool retail prices in consumer markets. PSF releases in recent years have been instrumental in tempering onion, tur and chana price spikes, especially in the September-to-November window.

Bharat brand retail — Atta, Dal, Rice, Moong

The Bharat brandis a Government of India retail intervention operated by the Ministry of Consumer Affairs, Food & Public Distribution, with NAFED, NCCF and Kendriya Bhandar as the three designated retail agencies. It began in October 2023 with Bharat Atta at ₹27.50 per kg and Bharat Dal (chana dal) at ₹60 per kg, and expanded from February 2024 to include Bharat Rice at ₹29 per kg and subsequently Bharat Moong dal. NAFED procures / receives the underlying grain / pulse from FCI (rice, wheat) or from its own PSS / PSF buffer (chana, moong), operates the milling / packaging value chain, and distributes through its own mobile vans, physical outlets, e-commerce partners, Kendriya Bhandar stores and Safal outlets. Bharat brand pricing is a retail-inflation-management instrument — the difference from the prevailing market price is borne by the central subsidy pool.

Additional implementing agency for the 10,000 FPO scheme

Under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs — approved by the Union Cabinet on 19 February 2020 with a ₹6,865 crore outlay — NAFED is one of the additional implementing agencies alongside NDDB, TRIFED, NCDFI, state cooperative federations and watershed- development departments, complementing the three lead implementing agencies (NABARD, SFAC and NCDC). NAFED empanels Cluster Based Business Organizations (CBBOs) for its allocated clusters, hand holds each FPO through registration, Detailed Business Plan preparation, opening of bank accounts, governance and CEO / board training, member training, market linkage, credit-guarantee application, MIS reporting and the five-year sustainability transition. NAFED-cluster FPOs typically anchor on commodities where NAFED has downstream procurement and marketing muscle — pulses, oilseeds, spices, honey and horticulture.

Cooperative import and distribution

NAFED has historically been a canalised importer of pulses, oilseeds and edible oils as notified by the central government from time to time — releasing imported stock to cooperative and public-distribution channels to bridge domestic shortfalls without disturbing farm-gate prices for the following season. In recent years canalised imports have narrowed as private imports have widened, but NAFED remains a designated agency for government-to-government pulse imports and for buffer-restocking imports at times of steep domestic shortage.

Governance and organisation

NAFED is governed by a Board of Directors elected by the General Body from its member cooperatives — state-level cooperative marketing federations (MARKFED Punjab, Rajfed, Kerala State Cooperative Marketing Federation, Gujarat State Cooperative Marketing Federation, MAHA-FPC and equivalents), primary agricultural cooperative marketing societies, cooperative processing societies and farmer service societies. The Board is chaired by an elected Chairman. The Government of India, through the Ministry of Cooperation, nominates certain directors and appoints the Managing Director as the chief executive of the federation. Day-to-day operations run from the NAFED headquarters at NAFED House, Ashram Chowk, New Delhi, through a national network of regional and branch offices, state coordinators, empanelled PACS and downstream cooperative marketing societies.

Convergence with the wider farmer-welfare portfolio

NAFED rarely operates in isolation — its instruments are designed to converge with several Government of India programmes and apex agencies to deliver end-to-end price support, market access and consumer-price stabilisation:

PM-AASHA: NAFED is the principal Central Nodal Agency for PSS physical procurement of pulses, oilseeds and copra at MSP.
MSP and CACP: NAFED procurement floor-prices are the announced MSP recommended by CACP and approved by the Union Cabinet each Kharif and Rabi season.
FCI: FCI leads paddy and wheat procurement; NAFED leads pulses, oilseeds and copra — together they cover the 22 notified MSP crops (with CCI for cotton and JCI for jute).
e-NAM: NAFED procurement centres are typically e-NAM-linked for farmer registration and price discovery at APMC mandis.
Operation Greens:for the perishable side — tomato, onion, potato and 19 other fruits and vegetables — the 50% transport and storage subsidy complements NAFED's PSF buffer operations on onion and potato.
10,000 FPO scheme: NAFED is an additional implementing agency alongside NABARD, SFAC and NCDC as lead agencies.
SFAC, NABARD, NCDC: sister institutions with complementary equity-grant, refinance and cooperative- finance windows respectively.

How to engage with NAFED

Farmer selling under PSS: register at the nearest PACS or on the state procurement portal (typically e-NAM-linked), present land records and an Aadhaar-linked bank account, deliver pulses / oilseeds / copra against FAQ grading at the NAFED-notified procurement centre. Payment is via DBT with a 72-hour SLA target.
Farmer selling under PSF (onion / potato / pulses): NAFED procures directly at market-clearing prices at APMC mandis and through cooperative marketing societies during peak arrival; watch for procurement notices in state APMC mandi bulletins and on nafed-india.com.
FPO working with NAFED: registered NAFED-cluster FPOs under the 10,000 FPO scheme are handheld through their empanelled CBBO. Other FPOs can approach NAFED regional offices for tenders, tie-ups and Bharat brand supply arrangements.
Cooperative society joining NAFED: state cooperative marketing federations, primary marketing cooperatives and cooperative processing societies can apply for NAFED membership by resolution of their Board and application to the NAFED Membership Cell — governed by the NAFED bye-laws under the MSCS Act, 2002.
Consumer buying Bharat brand: Bharat Atta, Bharat Dal, Bharat Rice and Bharat Moong are sold through NAFED mobile vans, physical outlets, e-commerce partners, Kendriya Bhandar stores and Safal outlets in most metros and tier-2 cities — location trackers are published on nafed-india.com and the Ministry of Consumer Affairs portal.

PM-AASHA

Umbrella price-support scheme — NAFED is the principal PSS procurement agency for pulses, oilseeds and copra.

MSP

Minimum Support Price — the floor at which NAFED procures the 22 notified MSP crops it handles.

FCI

Food Corporation of India — paddy and wheat procurement counterpart to NAFED's pulses / oilseeds mandate.

SFAC

Society of DA&FW — equity grants for FPCs, VCA, PDF and e-NAM implementation partner to NAFED.

NCDC

Cooperative-finance corporation under the Ministry of Cooperation — sister agency to NAFED.

10,000 FPO scheme

NAFED is an additional implementing agency alongside NABARD, SFAC and NCDC as lead agencies.

Operation Greens

50% transport and storage subsidy on TOP + 19 crops — complements NAFED's onion / potato PSF operations.

e-NAM

National Agriculture Market — NAFED PSS procurement centres are typically e-NAM-linked for registration and price discovery.

All schemes

Browse the full farmer-welfare portfolio index.

References

NAFED (nafed-india.com) — corporate portal: PSS procurement notices, PSF buffer status, Bharat brand product catalogue, tender notices, Board of Directors and Membership Cell contact.
Ministry of Cooperation (cooperation.gov.in) — parent ministry from 6 July 2021; cooperative-sector policy, MSCS Act, 2002 operational notifications and NAFED / NCDC / NCCF oversight.
Department of Agriculture & Farmers Welfare (agriwelfare.gov.in) — PM-AASHA operational guidelines and state-wise procurement progress under PSS / PDPS / PPSS.
Department of Consumer Affairs (consumeraffairs.nic.in) — Price Stabilisation Fund architecture and Bharat brand retail programme notifications.
Press Information Bureau (PIB) — Cabinet notifications on PM-AASHA (September 2018 launch; September 2024 continuation with ₹35,000 crore outlay), Bharat brand launches (October 2023, February 2024) and Ministry of Cooperation formation (6 July 2021).

Frequently asked questions

What is NAFED?: The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) is the apex national cooperative marketing federation of India, registered on 2 October 1958 under the Bombay Cooperative Societies Act (now governed by the Multi-State Cooperative Societies Act, 2002) and headquartered at NAFED House, Ashram Chowk, New Delhi. It functions as a federation of state-level cooperative marketing federations (MARKFED Punjab, Rajfed, Kerala State Cooperative Marketing Federation, MAHA-FPC and equivalents), primary agricultural cooperative marketing societies and other cooperative institutions. Since 6 July 2021, NAFED sits under the Ministry of Cooperation, Government of India (previously under the Department of Agriculture & Cooperation, DA&FW). Its principal mandate is to organise, promote and develop cooperative marketing of agricultural produce — with a specific operational role as one of the Central Nodal Agencies for procurement of pulses, oilseeds and copra at Minimum Support Price under the Price Support Scheme (PSS) component of PM-AASHA.
How is NAFED different from FCI, SFAC, NABARD and NCDC?: All five are Government of India institutions in the agri-marketing / rural-finance space but they have distinct legal personalities and mandates. FCI (Food Corporation of India) is a statutory corporation under the Food Corporations Act, 1964 responsible for MSP procurement of paddy and wheat, buffer-stock operations for the National Food Security Act and TPDS distribution. NAFED is a multi-state cooperative society under the MSCS Act, 2002 responsible primarily for MSP procurement of pulses, oilseeds and copra under PM-AASHA-PSS and for Price Stabilisation Fund operations. SFAC is a registered society under DA&FW focused on agri-business promotion, matching-equity grants to Farmer Producer Companies and running e-NAM. NABARD is a statutory apex development bank under the NABARD Act, 1981 focused on rural refinance, RIDF and FPO refinance. NCDC is a statutory corporation under the NCDC Act, 1962 focused on term-loan finance to cooperatives. In the 10,000 FPO scheme NAFED is one of the additional implementing agencies alongside NDDB, TRIFED and NCDFI, complementing the three lead agencies (NABARD, SFAC, NCDC).
What role does NAFED play under the Price Support Scheme (PSS) of PM-AASHA?: Under the Price Support Scheme (PSS) component of the PM-AASHA umbrella (approved by the Union Cabinet in September 2018 and made a continuing scheme in September 2024 with a ₹35,000 crore outlay), NAFED is the principal Central Nodal Agency for physical procurement of pulses (tur, chana, masur, moong, urad), oilseeds (mustard, groundnut, soybean, sunflower, safflower) and copra at Minimum Support Price. When the wholesale market price of a notified crop falls below MSP and the state government formally requests procurement, NAFED — with FCI and SFAC in supporting roles — opens procurement centres at state APMC mandis and PACS (Primary Agricultural Cooperative Society) collection points. Payment is released via Direct Benefit Transfer (DBT) to the Aadhaar-linked bank account of the registered farmer, with a scheme target of 72 hours from procurement. The procurement ceiling is 25% of state production of the notified crop (raised to 40% in specific seasons by special Cabinet approval).
What is the Price Stabilisation Fund (PSF) and NAFED's role in it?: The Price Stabilisation Fund (PSF) is a Central Sector scheme originally set up in 2014-15 under the Department of Agriculture & Cooperation and later transferred to the Department of Consumer Affairs — designed to protect consumers from spikes in prices of essential agri-horticulture commodities (primarily onion, potato and pulses) by maintaining a strategic buffer. NAFED is one of the two designated procurement agencies for the PSF (alongside NCCF, the National Cooperative Consumers' Federation), tasked with procuring onion, potato and pulses directly from farmers or through cooperative channels at market-clearing prices during peak arrival, storing them under scientific conditions, and releasing them in deficit-price windows to cool retail prices. The PSF is administered from 2024 through the PM-AASHA continuation architecture, with the Market Intervention Scheme (MIS) folded in.
What is the Bharat brand and how does NAFED operate it?: The Bharat brand is a Government of India retail intervention launched by the Ministry of Consumer Affairs, Food & Public Distribution — with NAFED, NCCF and Kendriya Bhandar as the three designated retail agencies — to sell essential food commodities to consumers at heavily subsidised prices out of central buffer stocks. It started in October 2023 with Bharat Atta (wheat flour) at ₹27.50 per kg and Bharat Dal (chana dal) at ₹60 per kg, and expanded from February 2024 to include Bharat Rice at ₹29 per kg and subsequently Bharat Moong dal. NAFED procures / receives the underlying grain / pulse from FCI (rice, wheat) or from its own PSS / PSF buffer (chana, moong), operates the milling / packaging value chain, and distributes through its own mobile vans, physical outlets, e-commerce partners, Kendriya Bhandar stores and Safal outlets. Bharat brand pricing is designed as a retail-inflation-management instrument — the difference from the market price is borne by the central subsidy pool.
Is NAFED part of the 10,000 FPO scheme?: Yes. Under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs (approved by the Union Cabinet on 19 February 2020 with a ₹6,865 crore outlay), NAFED is one of the additional implementing agencies alongside NDDB, TRIFED, NCDFI, state cooperative federations and watershed-development departments — complementing the three lead implementing agencies (NABARD, SFAC and NCDC). NAFED empanels Cluster Based Business Organizations (CBBOs) for its allocated clusters, handholds each FPO through registration, Detailed Business Plan preparation, opening of bank accounts, governance and CEO / board training, member training, market linkage, credit-guarantee application, MIS reporting and the five-year sustainability transition. NAFED clusters typically anchor on commodities where it has downstream procurement and marketing muscle — pulses, oilseeds, spices, honey and horticulture.
Who owns and governs NAFED?: NAFED is a multi-state cooperative society — its members are state-level cooperative marketing federations, primary agricultural cooperative marketing societies, cooperative processing societies, farmer service societies and other cooperative institutions from across the country. Governance is exercised by a Board of Directors elected by the general body from member cooperatives, chaired by an elected Chairman. The Government of India, through the Ministry of Cooperation, nominates certain directors and appoints the Managing Director as the chief executive. Day-to-day operations are run by the Managing Director from the NAFED headquarters at NAFED House, Ashram Chowk, New Delhi, through a national network of regional and branch offices, state coordinators and empanelled PACS.
How can a farmer or FPO sell to NAFED?: For MSP procurement under PSS, the farmer registers through the state procurement portal (typically e-NAM-linked) or with the local PACS, presents land records and an Aadhaar-linked bank account, and delivers pulses / oilseeds / copra against Fair Average Quality (FAQ) grading at the NAFED-notified procurement centre at the state APMC mandi or PACS collection point. Payment flows via DBT to the Aadhaar-linked bank account with a 72-hour SLA target. For PSF buffer procurement (onion, potato, pulses), NAFED procures directly at market-clearing prices at APMC mandis and through cooperative marketing societies. For FPOs — registered NAFED-cluster FPOs under the 10,000 FPO scheme are handheld through their CBBO for procurement scheduling, quality grading and market linkage; other FPOs can approach NAFED regional offices for tenders, tie-ups and Bharat brand supply arrangements. NAFED tender notices and procurement schedules are published on nafed-india.com.

NAFED's legal form, procurement mandates, PSS procurement ceiling of 25% (raised to 40% by special approval), PSF buffer operations on onion / potato / pulses, Bharat brand price points (Atta ₹27.50/kg, Dal ₹60/kg, Rice ₹29/kg) and 10,000 FPO scheme role above summarise publicly available material on nafed-india.com, the Ministry of Cooperation portal at cooperation.gov.in and PIB releases. Season-specific procurement notifications, Bharat brand price revisions and PSF release windows are updated periodically — farmers and consumers should verify current terms on nafed-india.com and the Ministry of Consumer Affairs portal before delivering produce or placing bulk orders.