Nafed heaves sigh of relief as govt approves its package

It was an uncommon AGM for Nafed which has been at the receiving end of criticism for a long time in the wake of tie-up losses. Finance Ministry had cleared its bail-out package just a day before the AGM sending waves of cheers as much among delegates as among leaders.

It was Nafed’s 59th Annual General Meeting which was held in NCUI’s Auditorium on Friday. Delegates to the AGM of the beleaguered cooperative were in an upbeat mood as Finance Minister Arun Jaitley had approved NAFED bail-out package. “It is a historical day”, shouted Sunil Singh its vice-chairman as soon as he sighted this reporter while having lunch.

Addressing the meeting, NAFED Vice-Chairman Dileepbhai Sanghani announced that ” A definite revival of the ailing cooperative latest by end of this month is said to be on the cards. NAFED will get a new lease of life”, he added.

Sanghani profusely thanked PM Narendra Modi. Readers would recall that the govt had decided to give an annual grant of Rs 30 crore for a period of 5 years to the Nafed to meet its financial obligations including salaries of employees and administrative expenses.

The govt had also offered to stand as guarantor of Nafed before the lending banks who had moved Debt Recovery Tribunal for recovery of their outstanding dues of around Rs 1700 crores.

In his presidential speech, NAFED Chairman V.R.Patel said ”Agriculture Minister has not only appreciated the efforts of NAFED in providing marketing support to the farmers but is also kind enough to assure adequate financial support to the organization to come out of the present financial crisis so that the agri-cooperative continues to serving the farmers’ interests”.

He informed delegates that the GOI will release about 478 crores as interest free loan against the mortgage of 17 freehold properties of NAFED for payment to the banks. He further said four floors of NAFED house would be given on rent to the IIFT and the Ministry of Rural Development.

Patel said the GOI have entrusted us with the responsibility of procuring pulses in both in kharif and rabi seasons
and with the support of the Agriculture Minister, NAFED was also sanctioned a credit limit of Rs 300 crores by the NCDC for procurement of Moong and Copra under Price Support Scheme.

The newly appointed NAFED MD Sanjeev Kumar Chadha said ”the federation could achieve a turnover of 544 crore as against 2516 crores achieved during the last year. The agri cooperative earned a gross profit of Rs 16 crore and due to interest liability on borrowed funds the net loss reported during the year is 148 crore”.

Citing the announcement made by the GOI to increase buffer stock of pulses to 20 lakh tonnes, he said ”70 percent has been given to NAFED and urged delegates to help us in this matter. To meet its financial obligations including salaries of employees we did the business of seeds and tea”, he said.

Several top notch dignitaries including Chandra Pal Singh, Bhanvar Singh Sekhawat, Sunil Kumar Singh, Virendra Singh,Vishal Singh, Bijendra Singh, Ashok Thakur and NAFED officials were present on the occasion.