Operation Greens Scheme By MoFPI
Operation Greens is a project approved by the Ministry of Food Processing Industries with the target to stabilize the supply of vegetables.
- Pattern of Assistance
- Way ahead
- 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.
- 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.
- Enhancing value realisation of TOP farmers by targeted interventions to strengthen TOP production clusters and their FPOs, and linking/connecting them with the market.
- Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual use varieties.
- Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
- Increase in food processing capacities and value addition in TOP value chain with firm linkages with production clusters.
- Setting up of a market intelligence network to collect and collate real time data on demand and supply and price of TOP crops.
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
- 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.
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.
- 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.
Background of Operation Greens
With an outlay of 500 crores, a new scheme operation Greens was announced by the Finance Minister in the Union Budget 2018-2019. Currently, Operation Green is currently housed in the Ministry of Food Processing Industries or MoFPI. NAFED is the Nodal Agency to implement price stabilisation measures.
The scheme Operation Greens is on the line of Operation Flood and aims to promote FPO – Farmer Producers Organizations, processing facilities, agri-logistics, and professional management of agricultural produce.
The need for Operation Greens
- The idea behind the Operation Greens scheme is to double the income of farmers by the end of 2022. It is launched on the lines of Operation Flood and seeks to reiterate the success of milk in vegetables and fruits.
- When the production of vegetable commodities increases sharply the prices crash because there is not enough modern storage capacity. Therefore, the scheme seeks to solve the problem of storage capacity.
- The Framers often receive less than 1/4th of what consumers pay for the produce. This is because the links between processing and organized retailing in India is weak and small.
- The scheme Operation Greens will focus on these problems for basic ingredients and not on additional commodities in agriculture.
Knowledge of Operation Greens, its objectives, strategies and needs is important and can be asked in various exams like bank exam, SSC, RRB and other Government exams.
Strategies of Operation Greens Scheme
The scheme Operation Greens have two-pronged strategies:
- Price stabilisation measures for short term
- Integrated value chain development projects for the long term.
Short term Price Stabilisation Measures:
- The hiring of appropriate storage facilities for TOP Crops
- NAFED will be the nodal agency to implement price stabilization. NAFED stands for the National Agricultural Cooperative Marketing Federation of India.
- The Ministry of Food Processing Industry will provide 50% of the subsidy on Transportation of TOP Crops from production to storage.
Long Term Integrated value chain development projects:
- Building the capacity of FPOs & their consortium
- Quality of production
- Processing facilities Post-harvest such as marketing and linking the consumption Points
- Creation and Management of e-platform for the management of demand and supply of TOP Crops.