Operation Greens

Operation Greens

  1. Introduction
  2. Objectives
  3. Strategy
  4. Significance
  5. Pattern of Assistance
  6. Way ahead

Introduction

  • In the budget speech of 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood”, with an outlay of Rs. 500 crore to promote Farmer Producers Organizations, agri-logistics, processing facilities and professional management.
  • Operation Greens seeks to stabilize the supply of Tomato, Onion and Potato (TOP) crops and to ensure availability of TOP crops throughout the country round the year without price volatility.
  • The scheme was extended during June 2020 to cover all fruits & vegetables (TOTAL) for a period of six months on pilot basis as part of Aatmanirbhar Bharat Abhiyan.
  • The Ministry of Food Processing Industries has launched the scheme.
  • NAFED will be the Nodal Agency to implement price stabilisation measures.

Aim

  • Operation Greens aims to promote farmer producers organisations, agri-logistics, processing facilities and professional management.
  • The operation aims to aid farmers and help control and limit the erratic fluctuations in the prices of onions, potatoes and tomatoes.
  • It was announced by Finance Minister Arun Jaitley in his budget speech.

Operation Greens

Objectives

  1. Enhancing value realisation of TOP farmers by targeted interventions to strengthen TOP production clusters and their FPOs, and linking/connecting them with the market.
  2. Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual use varieties.
  3. Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
  4. Increase in food processing capacities and value addition in TOP value chain with firm linkages with production clusters.
  5. Setting up of a market intelligence network to collect and collate real time data on demand and supply and price of TOP crops.

Strategy

The strategy will comprise of a series of measures as decided by the Ministry which include:

Short term Price Stabilisation Measures :

  • MoFPI will provide 50% of the subsidy on the following two components:
  • Transportation of Tomato Onion Potato(TOP) Crops from production to storage;
  • Hiring of appropriate storage facilities for TOP Crops;

Long Term Integrated value chain development projects

  • Capacity Building of FPOs & their consortium
  • Quality production
  • Post-harvest processing facilities
  • Agri-Logistics
  • Marketing / Consumption Points
  • Creation and Management of e-platform for demand and supply management of TOP Crops.

Significance of Operation greens:

  • Operation Green (OG) wants to replicate the success story of Operation Flood, in fruits and vegetables, starting with three basic vegetables—tomatoes, onions and potatoes (TOP).
  • The main objective of OG is to reduce price volatility in these commodities, and thereby helping farmers augment incomes on a sustainable basis, as also provide these basic vegetables to consumers at affordable prices.

Operation Greens

Pattern of Assistance

  • The pattern of assistance will comprise of grants-in-aid at the rate of 50% of the eligible project cost in all areas, subject to maximum Rs. 50 crores per project.
  • However, in case where PIA is/are FPO(s), the grant-in-aid will be at the rate of 70% of the eligible project cost in all areas, subject to maximum Rs. 50 crores per project.
  • Eligible Organisation would include State Agriculture and other Marketing Federations, Farmer Producer Organizations (FPO), cooperatives, companies, Self-help groups, food processors, logistic operators, service providers, supply chain operators, retail and wholesale chains and central and state governments and their entities/organizations will be eligible to participate in the programme and to avail financial assistance.

Way ahead:

  • The litmus test of the success of this OG would be if it can contain roller-coaster rides of booms and busts in prices, and avert scenes of farmers dumping potatoes and tomatoes on roads, as is happening in several parts of India today.
  • Also, containing prices going through the roof compelling the government to put bans on exports, de-stocking or even having income-tax raids on traders.