Union Home Minister Amit Shah Launches NAFED’s Digital Auction Portal “NAFEX.in”

Source: ET

Context

On Tuesday, 23 June 2026, Union Home Minister and Minister of Cooperation Shri Amit Shah launched NAFED’s digital auction portal “NAFEX.in” along with three other major digital and farmer-centric initiatives — DRISHTI Portal (inventory management for pulses and oilseeds), Saksham ERP (Enterprise Resource Planning for organisational efficiency), and the NAFED-KALYAN Scholarship Scheme (for children of farming families) — at Atal Akshay Urja Bhawan, New Delhi. The event was attended by Union Agriculture and Farmers Welfare Minister Shri Shivraj Singh Chouhan, Union Minister of State for Cooperation Shri Krishan Pal Gurjar, Secretary, Ministry of Cooperation Dr. Ashish Kumar Bhutani, NAFED Chairman Shri Jethabhai Ahir, NAFED Managing Director Shri Deepak Agarwal, and other senior officials and Board members. NAFEX.in — developed in collaboration with consulting firm Deloitte — is a dedicated digital auction portal designed to centralise and digitise the auction process for agricultural commodities, particularly oilseeds and pulses procured under the Government’s Price Support Scheme (PSS) and Price Stabilisation Fund (PSF). NAFED currently handles approximately 5.3 million tonnes of commodities annually and has so far relied on private e-auction service providers — NCDEX e Markets (NeML), mjunction, and E-Teach — for selling its stocks. NAFEX.in marks a strategic pivot by NAFED towards in-house digital infrastructure, allowing full control over data and transaction processes, and may eventually be opened to other state-level cooperative agencies to create a centralised digital ecosystem for cooperative agricultural trade. Addressing the gathering, Shah highlighted NAFED’s remarkable turnaround: from verge of closure in 2014, it now serves 74 lakh farmers, has a turnover of ₹30,000 crore, and earns profits of ~₹500 crore, with the target to cross ₹50,000 crore turnover. Under the NAFED-KALYAN scheme, 1% of NAFED’s profits will be earmarked for scholarships and career development of children of farming families. The launch aligns with PM Modi’s vision of “Sahkar Se Samriddhi” (Prosperity through Cooperation) and the Ministry of Cooperation’s efforts to strengthen cooperative institutions through technology, transparency, and farmer-centric reforms.

The Launch

• Venue: Atal Akshay Urja Bhawan, New Delhi.
• Launched by: Shri Amit Shah, Union Home Minister and Minister of Cooperation.
• Also Present: Shri Shivraj Singh Chouhan (Agriculture & Farmers Welfare), Shri Krishan Pal Gurjar (MoS Cooperation), Dr. Ashish Kumar Bhutani (Secretary, Ministry of Cooperation), Shri Jethabhai Ahir (NAFED Chairman), Shri Deepak Agarwal (NAFED MD), Board members.

Four Initiatives Launched

#	Initiative	Purpose
1	NAFEX.in	Digital auction portal for transparent agricultural commodity trading
2	DRISHTI Portal	Integrated inventory management for pulses and oilseeds
3	Saksham ERP	Enterprise Resource Planning for organisational efficiency
4	NAFED-KALYAN Scholarship Scheme	1% of NAFED’s profits for scholarships and career development of farmers’ children

NAFEX.in — Key Features

• What: A dedicated digital auction platform developed by NAFED in collaboration with Deloitte, that centralises and digitises auction processes for agricultural commodities, particularly oilseeds and pulses procured under Price Support Scheme (PSS) and Price Stabilisation Fund (PSF); replaces dependence on private e-auction service providers; enables competitive bidding, transparent price discovery, and direct connection between farmers, cooperatives, traders, processors, and institutional buyers; may be opened to other state-level cooperative agencies for a centralised digital cooperative trade ecosystem.
• Where: Hosted and operated by NAFED from its HQ in New Delhi; accessible across India via internet; inventory and warehouses across India participate via the portal.

NAFED-KALYAN Scholarship Scheme

• Allocation: 1% of NAFED’s annual profits.
• Beneficiaries: Children of farmer/farming families.
• Purpose: Higher education and career development.
• Scholarship cheques distributed at the launch event.

National Agricultural Cooperative Marketing Federation of India (NAFED)

• What: An apex cooperative organisation for marketing of agricultural produce in India; established on 2 October 1958 (Gandhi Jayanti); registered initially under the Bombay Co-operative Societies Act, 1925, currently under the Multi-State Cooperative Societies Act, 2002; serves as the central nodal agency for procurement of pulses, oilseeds, copra, and other commodities under the Government’s Price Support Scheme (PSS) at Minimum Support Price (MSP); key implementer of PM-AASHA; engages in storage, warehousing, export-import of agricultural commodities, trade in fertilizers and agri-inputs, organic farming, seed production, bio-fertilizers, retail operations.
• Where: HQ at Sidhartha Enclave, Ashram Chowk, New Delhi; operates branches and warehouses across India; under the Ministry of Cooperation (since July 2021).

“Sahkar Se Samriddhi” (Prosperity through Cooperation)

• What: A vision articulated by PM Narendra Modi to strengthen cooperative institutions and use them as engines of inclusive economic development; coined and operationalised with the creation of the Ministry of Cooperation in July 2021; aims to integrate technology, transparency, and farmer-centric reforms in cooperatives; target: cooperatives in every village.
• Where: Implemented across India through the Ministry of Cooperation and apex bodies like NAFED, NCCF, NCDC.

Price Support Scheme (PSS)

• What: A Government of India scheme under which NAFED, NCCF, FCI, CCI etc. procure agricultural commodities (pulses, oilseeds, copra, cotton) at Minimum Support Price (MSP) from farmers; procurement triggered when market price falls below MSP; part of the broader PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) umbrella since 2018.
• Where: Implemented across India by Department of Agriculture and Farmers Welfare and central nodal agencies (NAFED for pulses/oilseeds).

Price Stabilisation Fund (PSF)

• What: A Central Sector Scheme set up in 2014–15 with a corpus of ₹500 crore (subsequently augmented) to regulate price volatility of agricultural and horticultural commodities like onions, pulses, potatoes; procures, stocks, and releases to manage prices.
• Where: Administered by the Department of Consumer Affairs, Ministry of Consumer Affairs, in coordination with NAFED, NCCF, and state governments.

Practice MCQs

Q1. With reference to the launch of NAFEX.in on 23 June 2026, consider the following statements:

1. NAFEX.in was launched by Union Home Minister and Minister of Cooperation Shri Amit Shah at Atal Akshay Urja Bhawan, New Delhi.
2. It is a digital auction portal developed by NAFED in collaboration with Deloitte.
3. The launch event also saw the unveiling of the DRISHTI inventory management portal, Saksham ERP, and the NAFED-KALYAN scholarship scheme.
4. NAFEX.in was developed independently by the Reserve Bank of India.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; NAFEX.in was developed by NAFED in collaboration with Deloitte, NOT by the RBI.)

Q2. With reference to NAFED’s existing auction operations, consider the following statements:

1. NAFED currently handles approximately 5.3 million tonnes of agricultural commodities annually.
2. NAFED has so far used private e-auction service providers such as NCDEX e Markets (NeML), mjunction, and E-Teach.
3. NAFED procures commodities at Minimum Support Price (MSP) under the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF).
4. NAFEX.in will exclusively serve only state government departments and will not allow private traders.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; NAFEX.in is designed to connect farmers, cooperatives, traders, processors, and institutional buyers, NOT only state government departments. Private traders ARE allowed.)

Q3. With reference to NAFED, consider the following statements:

1. NAFED was established on 2 October 1958 (Gandhi Jayanti).
2. It is registered under the Multi-State Cooperative Societies Act, 2002.
3. NAFED is headquartered in New Delhi and is currently under the Ministry of Cooperation.
4. NAFED is primarily responsible for fertilizer manufacturing in India.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; fertilizer manufacturing is the domain of cooperatives like IFFCO and KRIBHCO, NOT NAFED. NAFED focuses on agricultural marketing and procurement.)

Q4. With reference to the Ministry of Cooperation and “Sahkar Se Samriddhi”, consider the following statements:

1. The Ministry of Cooperation was established on 6 July 2021 by bifurcating the Cooperation Division from the Ministry of Agriculture.
2. The current Union Minister of Cooperation is Shri Amit Shah.
3. “Sahkar Se Samriddhi” is PM Narendra Modi’s vision to drive inclusive development through cooperatives.
4. The Ministry of Cooperation administers the Companies Act, 2013.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; the Companies Act, 2013 is administered by the Ministry of Corporate Affairs, NOT the Ministry of Cooperation. The Ministry of Cooperation administers laws related to cooperative societies, particularly the Multi-State Cooperative Societies Act, 2002.)

Q5. With reference to the NAFED-KALYAN Scholarship Scheme launched on 23 June 2026, consider the following statements:

1. Under the scheme, 1% of NAFED’s annual profits will be earmarked for scholarships.
2. The scheme is targeted at children of farming families for higher education and career development.
3. Scholarship cheques were distributed at the launch event by the Union Cooperation Minister.
4. The scheme is funded by the Reserve Bank of India.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; the scheme is funded from NAFED’s own profits (1%), NOT by the RBI.)

Q6. With reference to the 97th Constitutional Amendment and cooperative reforms, consider the following statements:

1. The 97th Constitutional Amendment (2011) inserted Part IX-B (Articles 243-ZH to 243-ZT) on cooperatives.
2. It also inserted Article 43-B in the Directive Principles of State Policy promoting cooperatives.
3. The Ministry of Cooperation was set up to provide a dedicated administrative and policy framework for cooperatives.
4. India does not have any apex cooperative for consumer goods.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; NCCF (National Cooperative Consumers’ Federation) is India’s apex consumer cooperative body — running Bharat Atta, Bharat Dal, Bharat Rice brands.)

Answer Key

1. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because NAFED (not RBI) developed NAFEX.in.
2. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because NAFEX.in serves multiple stakeholders.
3. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because fertilizer manufacturing is by IFFCO/KRIBHCO.
4. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because Companies Act is administered by Ministry of Corporate Affairs.
5. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because the scheme is funded by NAFED’s own profits.
6. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because NCCF is the apex consumer cooperative.

Exam Relevance

Banking (RBI Gr B, SBI PO, IBPS, NABARD)	Very high importance, NAFED, cooperatives, agricultural marketing, MSP
NABARD Grade A	Extremely high importance, Direct subject — NAFED, cooperatives, PSS, PSF, PM-AASHA