(a) the major functions and the mode of constitution of the board of Directors of the National
Agricultural Cooperative Marketing Federation of India Limited (NAFED);
(b) whether there has been any change in the Constitution of the Board in connection with
the Co-operative Societies Act, 2002;
(c) if so, the details thereof;
(d) whether any suggestion has been made for strengthening the NAFED; and
(e) if so, the details thereof and the action taken thereon?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE(SHRI KANTI LAL BHURIA)
(a) to (e): The major functions of the Board of Directors of NAFED is to consider and approve
the annual budget, annual report and the audit report placed before the General Body; to admit
and suspend members; to appoint, suspend or remove the MD; to appoint Executive and
Business Committee; to recommend distribution of profit to the general body; to accept or reject
the resignation from the members of the Board of Directors and in the case of acceptance of
resignation or vacancy falling for other reasons, to co-opt Directors from among the
representatives to the General Body etc. The Board of NAFED is an elected body where the
members are elected by the General Body.
The constitution of the Board was changed in view of the amendment of Multi-State Co-
operative Societies (MSCS) Act, 2002. Accordingly, as per the existing provisions in the bye-
laws of NAFED, the maximum number of Director on the Board of NAFED is 21. Further, the
Board may co-opt two directors in addition to 21. The Managing Director of NAFED is also the
member of the Board and excluded for the purpose of counting the total number of Directors
specified in the Board.
The Board of Directors elected by the General Body consists of:
(i) One nominee each of the State Level General Purpose Cooperative Marketing
Federations excluding UTs admitted under Bye-law 4(A)(i) which has contributed atleast
Rs. 20 lakhs individually as equity through admission/additional contribution.
In case there are more than 10 such member federations then the first 10 in descending
order of their ranking would be eligible to nominate one director each to the Board of NAFED.
The ranking will be based on weighted overage of the percentage equity share capital of the
concerned State in the total issued share capital of NAFED and the average business with
NAFED excluding PSS/MIS or any other business of Government scheme in that State as a
percentage of the total business with NAFED in equal proportion. Such nominee shall be in
accordance with the provisions of the Act/Rules 2002.
(ii) One nominee from North-Eastern States including Sikkim and Apex level Marketing
Societies of the Union Territories registered under bye-law 4(A)(ii) on the basis of the
criteria laid down of (i) above and if none qualifies then vacancy is filled up by the
eleventh candidate from the list prepared in para(i) above.
(iii) One representative representing the State level Cooperative Commodity Federation
engaged in marketing processing or distribution of agricultural, minor forest and
allied produce, agricultural requisite and consumer goods is elected by the members
admitted under Bye-law 4(A)(iii)
(iv) Seven nominees representing primary level Cooperative Marketing and/or processing
of agricultural, minor forest or allied produce and/or agricultural inputs and having a
minimum sales turn over of Rs.50 lakhs or above during the cooperative year
preceding the date of application for membership, are elected by members admitted
under Bye-law (4(A)(iv) from amongst themselves;
(v) One nominee of the Government of India under Bye-law (4)(A)(v) where the
Government guarantee repayment of principal and payment of interest on loans and
advances to NAFED or has given any assistance by way of grants or otherwise to
NAFED, the Government in this behalf, as the case may be, or any person authorized
by the Government shall have the right to nominate person on the Board of NAFED.
(vi) One, nominee of the National Cooperative Consumers Federation is represented on
the Board of NAFED on reciprocal basis;
(vii) Managing Director.
(viii) Not more than two eminent cooperators, economists or management experts in the
country as may be co-opted by the Board of Directors. They have right to participate
and vote.Such persons are eligible for re-cooption after the end of their term;
Further, in order to strengthen the working of NAFED, this Department has advised to
NAFED to expand and diversify its activities in the field of agricultural and allied activities,
explore the possibilities to tap funds from various resources under on going schemes of
Government of India, to strengthen its mechanism for effective implementation of Minimum
Price Support and Market Intervention Scheme etc. so that the NAFED may become a
commercial viable organization in the changed business scenario so as to protect the interest of
farmers as well as the cooperatives.