Date:30/09/2005 URL: http://www.thehindubusinessline.com/2005/09/30/stories/2005093000701200.htm

Back Nafed to invest Rs 250 cr in TN in next 5 years

Our Bureau

Chennai , Sept. 29

THE National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) will invest over Rs 250 crore in Tamil Nadu over the next five years to improve agriculture productivity, marketing and infrastructure.

According to an official release, Nafed and the Tamil Nadu Agriculture Department have entered into a five-year agreement that enables both the agencies to work together. They will provide farmers a package covering high quality seeds and inputs, enhanced credit against stocks, training and marketing infrastructure.

The agreement is driven by the State Government's initiative in long-term programmes such as crop diversification, encouraging water efficient crops such as maize, cotton, oilseeds, pulses, millets and jatropha.

A key element of the agreement would be contract farming and purchase of commodities directly from farmers by involving self-help groups. Nafed will facilitate procurement of contracted produce and assist in setting up electronic `shandies' and agricultural malls.

By mutual consent, Nafed and the agriculture department would also consider scaling up the initial investment of Rs 250 crore, the release said.