Agri-cooperative Nafed is targeting to procure 7 lakh tonnes of pulses during the kharif and rabi seasons of the 2016-17 crop year to create buffer stock on behalf of the government.
The government is setting up a buffer stock of 20 lakh tonnes of pulses through domestic procurement and imports to intervene in the market to control price rise.
At its annual general body meeting, National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) Chairman V R Patel said the government has asked it to procure pulses for buffer stocks.
"NCDC has sanctioned a credit limit of Rs 300 crores for procurement of moong and copra under Price Support Scheme," he said in a statement.
Patel said the government has assured adequate financial support to the organisation to bail-out Nafed from the present financial crisis so that co-operative continues serving the interest of the farming community.
Nafed had maintained 2500 tonnes of onion in buffer stocks last year and 5000 tonnes during the current year on behalf of the government, he said.
On the financial package, he said "the Ministry of Agriculture has already circulated a Cabinet note to different ministries for their comments and the same shall be placed before the Cabinet very shortly."
Nafed MD Sanjeev Kumar Chadha tabled a detailed account of business activities of the cooperative for the year 2015-16 before the general body.
In 2015-16, Nafed had a turnover of Rs 544.18 crores and earned a gross profit of Rs 16.49 crore.
He informed that the government would sanction financial revival proposal of Nafed including one time settlement with the lender banks.
"Nafed has taken major target of 7 lakh tonnes of pulses during Kharif 2016-17 and Rabi 2017 season due to which the farmers will be immensely benefitted," Chadha said.
Nafed had a turnover of Rs 2,516.38 crore during 2014-15. There was a gross profit of Rs 20.57 crore, but due to huge interest liability on outstanding loans in tie-up business, there was a net loss of Rs 156.68 crore.
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