The organization serves the farmers throughout the country by implementing the Price Support Scheme of Govt. of India for Oilseeds, Pulses, Copra & Cotton. Though the fund requirement of the PSS was separately provided to the Organization through sovereign guarantee, but its problems with banks many times created hurdles in smooth withdrawals even against government guarantee, affecting payment to the farmers. It is hoped that with this settlement, the Price Support Scheme operations will be more smooth and effective. During the last three years, the Federation has made record procurement of Oilseeds & Pulses at MSP under PSS. Further, it has been the major agency having procured around 90% of the buffer target of Pulses.
The Govt. of India had constituted a Committee headed by Additional Secretary & Financial Advisor, Department of Agriculture, Cooperation & Farmers’ Welfare comprising of senior officials from the Departments of Expenditure, Financial Services, Cooperation and Managing Director, NAFED, to work out the scheme for the financial revival including the One Time Settlement with the banks. The Committee had held various meetings with the lender banks and decided the OTS in January 2016.
Initially, the Govt. of India was to provide the financial assistance through the interest-free loan against NAFED’s properties, but later on, it was revised with the contribution by NAFED through cash payment and transfer of one of its prime properties. Govt. of India has undertaken to provide for the shortfall in the OTS amount if any.
This settlement has brought much relief to the Organization and its employees in particular and Cooperative Sector in general.The Chairman and the senior Directors of NAFED were present at the signing of the Debt Settlement Agreement. The Chairman, NAFED, thanked Hon’ble Prime Minister Shri Narendra Modi, Union Agriculture & Farmers Welfare Minister, Union Finance Minister, and Minister of State for Agriculture & Farmers Welfare for the unstinted support and trust in NAFED. He especially thanked the Principal Secretaries to the Prime Minister for their initiatives in implementing the revival package of NAFED.
The Managing Director thanked the Govt. of India for its support to implement the One Time Settlement with the lender banks.