Operation Greens Scheme is a government initiative launched in 2018. The scheme focuses on the Tomato, Onion, and Potato (TOP) value chain, comprising Long Term Intervention and Short-Term Interventions. The scheme aims to boost the production and supply of fruits, vegetables, and other perishable agricultural commodities. It is being implemented in two phases. In the Union Budget 2018-19, the "Operation Greens" scheme, akin to "Operation Flood," was introduced with a Rs. 500 crore allocation for the development of Farmer Producers Organizations (FPOs), agri-logistics, processing facilities, and professional management. As part of the "Aatmanirbhar Bharat Package" announced on May 15, 2020, in response to the economic impact of COVID-19, the short-term measures of the scheme were extended from TOP crops to encompass all fruits and vegetables.

Operation Greens Scheme UPSC is an important scheme from the perspective of UPSC Prelims, General Studies Mains and Interview perspective. Time and again, questions have been asked about schemes related to agriculture in the UPSC IAS exam. 

This article on Operation Green Scheme UPSC will discuss in a detailed way the objective behind the Operation Greens scheme along with its features, strategies, benefits and the challenges associated with it.

What is Operation Greens Scheme?

Operation Greens (OG) is a scheme launched by the Government of India in 2018. It aims to boost the production and marketing of horticultural produce in the country. The Ministry of Agriculture and Farmers Welfare implements the scheme. It is funded by the National Agricultural Cooperative Marketing Federation of India (NAFED).

Background of the Operation Green Scheme 2018

Operation Green scheme was launched by the Government of India in 2018. It boosts the production and supply of fruits, vegetables, and other perishable commodities. The Ministry of Agriculture and Farmers Welfare is implementing the scheme. It is implemented through the National Agricultural Cooperative Marketing Federation of India (NAFED). 

NAFED has set up a special-purpose vehicle called the National Agricultural Market (NAM). The NAM has been set up in 585 markets across the country. The Operation Green Scheme has been a success in increasing the supply of agricultural commodities. The scheme has also helped to improve the prices received by farmers.

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Objectives of the Operation Greens Scheme

The objectives of Operation Green central sector scheme is to:

• Help farmers get a better price for their tomatoes, onions, and potatoes by supporting the production and marketing of these crops.
• Keep prices stable for both farmers and consumers by planning production. Introducing new varieties of crops that can be used for both fresh consumption and processing.
• Reduce food waste by:
  • building infrastructure at the farm gate, 
  • developing suitable transportation and storage systems, and 
  • connecting production clusters to consumption centers.
• Increase food processing and value addition in the tomato, onion, and potato supply chain. This is by connecting processing facilities to production clusters.
• Create a market intelligence network to collect and analyze data on the demand, supply, and prices of these crops in real-time.

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Need for Operation Greens Scheme

• When the production of vegetable commodities at the grower’s end increases sharply, the market price of commodities crashes because there is not enough modern storage capacity available and when there is an off-season of growing a particular fruit or vegetable, then the prices sharply increase at the consumer’s end. Therefore, the scheme of Operation Greens seeks to solve the problem of storage capacity and price volatility.
• Operation Greens Scheme aims to strengthen the links between processing and organized retailing, which is very weak as of now.
• By launching Operation Greens Scheme, the government aims to replicate the success of Operation Flood in fruits and vegetables and to double the income of farmers by the end of 2022.
• Through Operation Greens, the government focuses on basic ingredients rather than emphasizing additional commodities in agriculture.

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Strategies Under Operation Greens Scheme

Short Term- Price Stabilization Measures

To ensure price stability for Tomato Onion Potato (TOP) crops, the National Agricultural Cooperative Marketing Federation of India (NAFED) will serve as the Nodal Agency responsible for implementing price stabilization measures. The Ministry of Food Processing Industry will provide a 50% subsidy for the following:

• Transportation of TOP crops from production areas to storage facilities.
• Hiring suitable storage facilities for TOP crops.

Long Term- Integrated Value Chain Development Projects

The scheme also focuses on long-term development through integrated value chain initiatives. These projects include:

• Capacity building of Farmer Producer Organizations (FPOs) and their consortiums.
• Enhancing the quality of production.
• Establishing post-harvest processing facilities.
• Improving agri-logistics.
• Identifying and developing marketing/consumption points.
• Creating and managing an e-platform for effective demand and supply management of TOP crops.

These strategies aim to address both short-term price fluctuations and long-term development needs of the TOP crop sector. They foster stability and growth in the agricultural industry.

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Features of the Operation Green Scheme 2018

• The scheme is based on a two-pronged strategy of Price stabilization measures (for the short term) and integrated value chain development projects (for the long term).
• The eligible entities under Operation Greens are Food processors, FPOs/FPCs, Co-operative Societies, Individual farmers, Licensed Commission Agents, Exporters, State Marketing/Cooperative federations, Retailers, etc. engaged in the processing/ marketing of fruits and vegetables.
• Ministry of Food Processing Industries (MoFPI) will provide a subsidy at the rate of 50% of the cost of the following two components, subject to the cost norms:
  • Transportation of qualified, eligible crops from a surplus production cluster to a consumption center;
  • Hiring of appropriate storage facilities for the eligible crops under this scheme (for a maximum period of three months)
• The pattern of assistance will comprise a subsidy at the rate of 50% of the eligible project cost in all areas, subject to a maximum of Rs. 50 crores per project. However, in the 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 a maximum of Rs. 50 crores per project.
• The Operation Greens scheme is a demand-driven scheme, and funds are allocated on the basis of applications received. No crop-wise/state-wise funds are allocated under the scheme.

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Benefits of the Operation Green Scheme

Benefits to farmers

• Decrease post-harvest losses: Operation Green will save the farmers from post-harvest losses by providing robust infrastructural support and enhancing storage capacity.
• Fair Price realization: By targeted interventions and linking farmers/FPOS with the e-NAM, producers will be saved from distress selling and will get a fair price for the produce.
• Stabilization of Prices: Through a market intelligence network, real-time data on demand and supply will be easily accessed, and this scheme will help in proper decision-making and stabilization of Prices.

Benefits to Food Processors

• Capacity building: Proper linkage of farmers/FPOs with the production clusters of the TOP value chain will increase the Capacity of food processing.
• Market intelligence network: The food processing value chain can make use of real-time data on demand and supply to plan their production.

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Challenges

• Non–Homogeneity: Unlike milk, there are multiple varieties of TOP vegetables grown in different climatic conditions and in different seasons in different parts of the country, which makes processing and storage more complex.
• Lack of technological development: The technology development for long-term storage, transport, and processing is still in the nascent stage.
• Under-developed Organized market: In India, at present, the share of the organized market is very small in relation to total production. Developing it at an organized level will take time and incur high costs, along with behavioral change.
• No Institutional Support: Unlike the National Dairy Development Board (NDDB) in the case of Operation Flood, the Operation Greens scheme is not provided with any kind of institutional support.
• No leadership face: Operation Flood was headed by Dr Verghese Kurien, who is respected for his/her independence as well as commitment and competence but making MoFPI the nodal agency for implementing Operation Green with faceless leaders (joint secretaries who can change from one ministry to another at the drop of a hat) is not very promising.

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Way Forward

• There is a requirement to connect consumption and production centers with the minimum possible intermediaries. It’s also critical to connect the processing business with organized commerce so that around one-fourth of the product is processed.
• The government can reduce widened price volatility by creating strong forward and backward linkages, increasing farmers’ share of the price paid by consumers while also ensuring lower prices for consumers – a win-win situation for all.

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