NAFED plays a significant role in the agricultural marketing sector in India. It is a Multi-State Federal Cooperative Society that was established on October 2, 1958, under the Bombay Cooperative Societies Act 1925. Currently, it is considered registered under the Multi-State Cooperative Societies Act 2002. The primary objective of NAFED is to effectively organize, promote, and develop the marketing, processing, and storage of agricultural, horticultural, and forest produce. Its overarching aim is to ensure that farmers have access to a ready market and to protect them from exploitation by private traders. NAFED's main expertise lies in procuring agricultural commodities directly from farmers through its extensive cooperative network spread across the country. This ability to directly engage with farmers is, in fact, the organization's greatest strength.