NAFED makes impressive turn around, RM Singh advises it to continue momentum

As a part fulfillment of its one time settlement amount of Rs 478 Crore, the National Agriculture Cooperative Marketing Federation of India has contributed Rs 220 crore as cash payment to its lender banks


New Delhi: National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) reeling under financial distress and massive debt of its lender banks till recently, has made an impressive turn around with record profit for the financial year 2017-18. This has enabled the Federation to contribute Rs 220 Crore as cash payment to its lender banks towards part fulfillment of its One Time Settlement amount of Rs 478 Crore.

NAFED had signed the Debt Settlement Deed on 27th March, 2018 at its Headquarter at New Delhi. Central Bank of India was the lead bank, representing all eight lender banks. This journey of NAFED from a period of acute financial crisis, staring at imminent closure to the present when it has reported record profit and wiped out its liabilities to its lender banks as well other high value creditors, has been quite arduous. Several efforts and schemes were drawn for the financial revival of the federation, whose role is very vital for implementation of Price Support Scheme of Oilseeds, Pulses and Copra as well regulating the prices of perishables. Finally, the One Time Settlement worked out on 27th January, 2016, saw the light of the day.

The federation had organized a Thank Giving Function at Dr Ambedkar International Centre, 15, Janpath, New Delhi, yesterday evening to express its sincere thanks and gratitude to Hon’ble Prime Minister of India, Union Agriculture Minister, several Departments of the Govt. of India, the lender banks and State Governments for their support.

Union Agriculture Minister, Mr Radha Mohan Singh, was the Chief Guest. Mr Dharmendra Pradhan, Union Minister of Petroleum & Natural Gas alongwith Mr Parshottam Rupala, Mr Gajendra Singh Shekhawat, Ministers of State for Agriculture & Farmers’ Welfare were present. A host of senior Govt. of India Officials, State Governments, National Cooperative Bodies, State Cooperative Bodies, Banks, Niti Aayog and the Members of the Board of Directors of NAFED, ex-Managing Directors, retired employees of the federation, etc. were present.

Speaking on the occasion, the Chief Guest Mr Radha Mohan Singh complemented NAFED and lender banks for implementing the One Time Settlement. Mr Singh lauded the efforts of the federation in making record procurement of Pulses and Oilseeds under Price Support Scheme of Govt. of India, thereby earning substantial business income for the federation as well service to the farmers and further called upon the Management of NAFED to continue its efforts for the service of the farmers as well to introduce transparent mechanism of the procurement and disposal of the commodities being procured on behalf of Govt. of India.

Recalling the genesis of the crisis which had engulfed the federation, Union Agriculture Minister mentioned that NAFED without proper security had been distributing financial assistance to the private parties during the year 2003-07. The money was never returned by the private parties to Nafed, leading to defaults to banks. Mr Singh mentioned that a common borrower is put through lot of check and appraisal before he/she is granted personal loan but here was the case in which no financial rules and regulations were followed. Mr Singh cautioned the present Management to be careful in discharge of their functions so that there is no repetition of such instances. There shall be no second opportunity for the Federation if its affairs and working is not transparent and above board. He called upon the Management to induct professionals in its system as they will properly guide and steer the federation to greater heights.

Mr Dharmendra Pradhan, Union Minister of Petroleum & Natural Gas praised the efforts of NAFED for making such an impressive turn around with dedicated efforts, which was beneficial to the Organization as well the farmers. He mentioned that NAFED has been very active in recent past in taking new initiatives like Farm Waste Management and production of CNG/Biofuel which is to be distributed through the Indian Oil Corporation. The recent signing of Agreement by NAFED with Indian Oil Corporation was mentioned by the Union Minister. He called upon the Cooperative Sector to come forward for the skill development of the Indian farmers, which will long serve the Indian rural economy.