Amit Shah Directs Nafed and NCCF to Buy Pulses, Oilseeds Direct From Farmers

Union Home and Cooperation Minister Amit Shah has directed Nafed and NCCF to procure pulses and oilseeds directly from farmers, with reports saying the goal is to remove middlemen and improve payment transparency. The instruction was accompanied by a push for digital systems, including the Nafed auction portal and other farmer-facing tools intended to streamline how crops are bought and paid for.

What the directive entails

At the heart of the directive is a shift toward direct procurement, in which the cooperative agencies buy produce straight from cultivators rather than through layers of intermediaries. By cutting out middlemen, the government hopes to ensure that more of the purchase value reaches farmers and that payments are recorded and disbursed transparently.

The accompanying emphasis on digital platforms, including the Nafed auction portal, is meant to create a clear audit trail for transactions, from the moment crops arrive at procurement points to the moment payments are credited to farmers.

Why direct procurement matters

Farmers across India frequently face price uncertainty, delayed payments and heavy dependence on local markets where their bargaining power is limited. Direct procurement by Nafed and NCCF, if implemented effectively, could reduce that dependence and offer a more predictable channel for selling pulses and oilseeds.

The approach also has implications for the broader minimum support price (MSP) system, which relies on credible procurement operations to be meaningful for farmers on the ground.

Potential gains and the execution challenge

If executed well, the model could strengthen MSP operations, reduce leakage in the supply chain and improve data on crop arrivals, giving policymakers better visibility into production and market trends. Cleaner data, in turn, can support sharper planning for buffer stocks and price interventions.

The challenge, as with many agricultural reforms, lies in implementation across diverse states, varied crop cycles and uneven digital readiness among farmers.

• Amit Shah directed Nafed and NCCF to buy pulses and oilseeds directly from farmers.
• The stated goal is to remove middlemen and improve payment transparency.
• Digital tools, including the Nafed auction portal, will support the system.
• Direct procurement could ease price uncertainty and delayed payments for farmers.
• Effective execution could strengthen MSP operations and reduce supply-chain leakage.

“If executed well, the approach could strengthen minimum support price operations, reduce leakage and improve data on crop arrivals.”

— Policy assessment

The success of the directive will ultimately be measured by whether farmers experience faster, fairer payments and greater confidence in selling to cooperative agencies. As Nafed and NCCF operationalise the instruction, the coming procurement seasons will show whether the promise of cutting out middlemen translates into tangible gains for India's pulse and oilseed growers.

The NE Times View

Cutting out the middleman and paying farmers digitally is a sensible aim that India has chased for decades with mixed results. Direct procurement only helps if the agencies have the reach, storage and cash to actually absorb the harvest at promised prices. The intent is right, but Nafed and NCCF have historically struggled with scale. The proof will be in whether pulses growers see fair, timely payments, or another well-meaning order that thins out at the village level.

This article is original commentary and analysis by The NE Times. Background facts were referenced from The Times of India and The Economic Times.