Underutilization of Operation Greens Scheme

Underutilization of Operation Greens Scheme

Why in News?

A recent Parliamentary Standing Committee (PSC) report has highlighted the underperformance of the Operation Greens (OG) scheme, drawing attention to its limited success in addressing challenges in agricultural markets and post-harvest losses. The report raises concerns about the government’s ability to stabilize crop prices and manage the volatility in agricultural markets effectively.

Key Findings of the PSC Report

1. Underutilization of Budget:

   • By October 2024, only 34% of the allocated budget for 2024-25 (Rs 173.40 crore) had been spent, amounting to Rs 59.44 crore.

   • This leaves 65.73% of the budget unspent, suggesting challenges in meeting expenditure guidelines and raising concerns about the scheme’s efficiency in utilizing resources.

2. Limited Impact on Price Stabilization:

   • Despite the Operation Greens scheme’s objective to stabilize the prices of perishable crops, the scheme has shown limited success:

     • Onion farmers in Maharashtra have faced a price crash, with onion prices dropping by nearly 50%.

     • Potato shortages have been reported in states like Odisha and Jharkhand, largely due to weather-related production dips in West Bengal.

3. Policy Inconsistencies:

   • Government Policy Fluctuations: Inconsistent policies, such as the export ban and its extension and imposition of export duties, have contributed to frustration among farmers. These policy shifts have impacted the ability of onion farmers to secure fair prices, leading to market instability.

4. Challenges in Achieving Scheme's Mandate:

   • The scheme has faced difficulties in achieving its dual objectives:

     • Ensuring fair prices for farmers while keeping prices affordable for consumers.

   • Underfunding and lack of progress on infrastructure development have hindered the stabilization of agricultural markets and addressing the post-harvest management challenges.

What is the Operation Greens Scheme?

Background

The Operation Greens (OG) scheme is a central sector initiative launched in 2018 under the Pradhan Mantri Kisan SAMPADA Yojana. Inspired by the success of Operation Flood (White Revolution), the scheme aims to stabilize the prices of perishable crops and enhance farmers' incomes.

Objectives

1. Long-Term Interventions:

   • Enhance farmers' value realization: Focuses on production clusters and Farmers Producer Organisations (FPOs) to improve economic benefits.

   • Reduce post-harvest losses: Aims to tackle inefficiencies in farm gate infrastructure, agri-logistics, and storage facilities.

   • Boost food processing and value addition: Strengthens links between production clusters and markets to create more value-added products.

2. Short-Term Interventions:

   • Distress sales protection: Prevents farmers from selling crops at a loss due to market fluctuations.

   • Reduce post-harvest losses by improving storage and infrastructure.

Implementation

• The scheme is implemented by the Ministry of Agriculture and Farmers Welfare, with funding from the National Agricultural Cooperative Marketing Federation of India (NAFED).

Scope of the Scheme

• Initially, Operation Greens focused on three perishable crops:

  • Tomato, Onion, and Potato (TOP).

• As part of the 15th Financial Commission Cycle (2021-26), the scheme expanded to include 22 perishable crops, such as:

  • Fruits (Mango, Banana, Grapes),

  • Vegetables (Carrot, Beans, Okra),

  • Gourd family (Bottle Gourd, Bitter Gourd),

  • Other crops like Garlic, Ginger, and Shrimp.

Conclusion

The Operation Greens scheme was designed to stabilize prices, reduce post-harvest losses, and improve farmers' earnings, but its underutilization and inconsistent results raise significant concerns. The scheme's underperformance, highlighted by the Parliamentary Standing Committee report, points to issues like budget underutilization, policy inconsistencies, and challenges in stabilizing crop prices. Despite the expansion of the scheme’s scope, its limited impact on addressing market volatility and supporting farmers in distress shows the need for improved implementation and coherent policies to achieve its full potential.