Operation Greens Scheme

The Government of India launched Operation Greens (OG) in 2018 to enhance the production and marketing of horticultural produce nationwide. The Ministry of Agriculture and Farmers Welfare oversees the implementation of the scheme, with funding provided by the National Agricultural Cooperative Marketing Federation of India (NAFED).

Background

In April 2016, the Indian Government launched Operation Greens to boost the production and distribution of fruits, vegetables, and other perishable goods. The Ministry of Agriculture and Farmers Welfare oversees this initiative, collaborating with the National Agricultural Cooperative Marketing Federation of India (NAFED). NAFED has set up the National Agricultural Market (NAM) in 585 markets across the country to support this effort. Operation Greens has led to a significant rise in the availability of agricultural products, enabling farmers to earn better prices for their produce.

Objectives

The objectives of Operation Greens is to:

Help our hardworking farmers secure fair prices for their tomatoes, onions, and potatoes by enhancing production and marketing strategies.
Ensure price consistency for both farmers and consumers through careful planning of crop production. This includes introducing new crop varieties suitable for both fresh consumption and processing.
Combat food wastage by investing in infrastructure right at the farms, improving transportation and storage systems, and linking production areas with consumption hubs.
Boost food processing and add value to the tomato, onion, and potato supply chain by establishing connections between processing facilities and production zones.
Establish a robust market intelligence network to gather and analyze real-time data on crop demand, supply, and prices, aiding informed decision-making for all stakeholders.

Need

When farmers produce a lot of vegetables, the market gets flooded and prices drop because there’s not enough storage space. On the flip side, when certain fruits or veggies aren’t in season, prices shoot up for consumers.
Operation Greens aims to address storage issues and price fluctuations by taking action.
It also wants to improve the weak connection between processing plants and organized retail stores.
The government hopes to recreate the success of Operation Flood but with fruits and veggies, aiming to double farmers incomes by 2022.
Operation Greens focuses on essential ingredients in farming rather than adding more stuff to the mix.

Features

The scheme aims to stabilize prices in the short term and develop an integrated value chain in the long term.
People involved in food processing, farming, cooperative societies, individual farmers, commission agents, exporters, marketing federations, and retailers in the fruit and vegetable sector are eligible.
The Ministry of Food Processing Industries (MoFPI) will cover 50% of the costs for two key aspects:
- Transporting crops from areas with surplus production to places where there’s demand.
- Renting storage facilities for these crops for up to three months.
Eligible projects will receive 50% subsidy on project costs, capped at Rs. 50 crores. However, if Farmer Producer Organizations (FPOs) are involved, they can get 70% subsidy, also capped at Rs. 50 crores per project.
The scheme operates on a demand-driven basis. Funds are allocated based on the applications received, without specific allocations for different crops or states.

Challenges

Just like milk, different types of top vegetables grow in various climates and seasons across the country, which adds complexity to their processing and storage.
The technology needed for long-term storage, transportation, and processing of vegetables is still in its early stages of development.
In India, the organized market for vegetables is relatively small compared to total production. It will take time and significant investment to develop this market, along with a change in people’s behavior.
Unlike the National Dairy Development Board (NDDB) which supported Operation Flood, there’s no similar institutional support for Operation Greens.
Dr. Verghese Kurien, a highly respected figure known for his independence, dedication, and competence, led Operation Flood.

Benefits

For Farmers:

Reduce Waste: Operation Green aims to help farmers by improving storage facilities and infrastructure, which will decrease the amount of produce lost after harvest.
Fair Prices: By connecting farmers with platforms like e-NAM, they can avoid selling their produce at lower prices in times of desperation, ensuring they receive fair compensation for their hard work.
Price Stability: With access to real-time market data, farmers can make informed decisions about when and where to sell their crops, helping to stabilize prices and secure their income.

For Food Processors:

Skill Development: By linking farmers and producer groups with key production hubs in the supply chain, food processors can enhance their capabilities and increase production capacity.
Market Insight: Leveraging a network of market intelligence, food processors can gain valuable insights into consumer demand and supply trends, allowing them to plan their production more effectively.

Way Forward

To ensure both farmers and consumers benefit, we must connect production and consumption hubs while minimizing middlemen. It’s vital to link processing businesses with organized markets so that a significant portion of products gets processed. The government plays a crucial role in reducing price fluctuations by establishing strong connections between various stages of production and distribution. This ensures farmers receive a fair share of the price paid by consumers, while also keeping prices reasonable for consumers.

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