Underutilization of Operation Greens Scheme

• 30 Dec 2024

Source: DTE 

Why in News? 

Recently, a Parliamentary Standing Committee (PSC) on Agriculture, Animal Husbandry and Food Processing tabled a report highlighting the underperformance Operation Greens (OG) scheme. 

• The scheme’s limited success raises concerns about the government's ability to address the challenges of volatile agricultural markets and post-harvest losses. 

What are the Key Findings of the PSC Report? 

• Underutilisation of Budget: Only 34% (Rs 59.44 crore) of the Rs 173.40 crore allocated for the 2024-25 financial year has been spent by October 2024. 
  • 65.73% of the allocated budget remains unspent, which raises concerns about meeting expenditure guidelines for the remaining fiscal year. 
• Limited Impact on Price Stabilization: Despite the scheme's objective to stabilize crop prices, onion farmers in Maharashtra are facing a price crash, with onion prices falling by nearly 50%. 
  • Potato shortages are being experienced in states like Odisha and Jharkhand, exacerbated by production dips in West Bengal due to weather conditions. 
• Policy Inconsistencies: The government’s inconsistent policies, like the export ban and its extension, and the imposition of export duties, have frustrated onion farmers, affecting their ability to secure fair prices. 
• Challenges in Achieving Scheme's Mandate: The scheme has struggled to meet its dual objectives: ensuring farmers receive fair prices while maintaining affordable prices for consumers. 
  • The underfunding and lack of progress highlight the challenges in stabilizing agricultural markets and addressing infrastructure gaps in post-harvest management. 

What is the Operation Greens Scheme? 

• About: Operation Greens, a central sector scheme launched in 2018, under the Pradhan Mantri Kisan SAMPADA Yojana, aims to stabilize the prices of perishable crops and enhance farmers' earnings by drawing inspiration from "Operation Flood (White Revolution)". 
• Objectives:  
  • Long-Term Interventions: Enhance farmers' value realization through support for production clusters and Farmers Producer Organisations (FPOs). 
    • Reduce post-harvest losses via farm gate infrastructure, agri-logistics, and storage facilities. 
    • Boost food processing and value addition by linking production clusters with the market. 
  • Short-Term Interventions: Protect growers from distress sales and reduce post-harvest losses. 
• Implementation: OG is implemented by the Ministry of Agriculture and Farmers Welfare, with funding provided by the National Agricultural Cooperative Marketing Federation of India (NAFED). 
• Expansion of Scope: The OG scheme initially focused on Tomato, Onion, and Potato (TOP).  
  • However, as part of the 15^th Financial Commission Cycle (2021-26), its scope expanded to include 22 perishable crops such as fruits (e.g., Mango, Banana, Grapes), vegetables (e.g., Carrot, Beans, Okra), gourd family (e.g., Bottle Gourd, Bitter Gourd), and other crops like Garlic, Ginger, and Shrimp. 

Read more: Food Inflation: Trends, Factors and Control Measures