Operation Green

The Ministry of Food Processing Industries (MoFPI) is the implementing agency of operation green.

A new program called “Operation Greens” with a budget of Rs. 500 crores was introduced in the budget address 2018–19 of the Union Government to support Farmer Producer Organizations (FPOs), agri-logistics, processing facilities, and professional management.

Additionally, in the budget address of the Union Budget 2021-22, the scope of long-term interventions i.e., Integrated Value Chain Development Projects, under the Scheme, originally applicable to tomato, onion, and potato (TOP) crops was expanded to 22 perishable crops.

The Ministry of Food Processing Industry is the implementing agency of the central sector scheme, Operation Green.

Objective

The primary objective of Operation green are-

• Improving the value realization of the farmers by strengthening the production clusters and linking the farmers to the market.
• Creating an infrastructure to reduce post-harvest losses along with developing suitable agri-logistics.
• Increasing food processing industries and value addition in value chains.
• establishing a market intelligence network to gather and compile current information on listed crop demand, supply, and price.

Components of Operation Green

The program consists of mainly three components:

1. Long-Term Intervention- (Integrated Value Chain Development Projects)
2. Short-Term Interventions.
3. Quality Production

What is the Pattern of Assistance?

1. Integrated Value Chain Development Projects: The maximum grants-in-aid per project would be 15 crores.
2. Standalone Post-Harvest Infrastructure Projects: The maximum grants-in-aid per project would be 10 crores.
3. Quality production: A maximum of 5% of the overall Scheme allocation may be used for quality production.

Operation Green: Long-Term Intervention

For the development of the value chain for each crop, projects will be implemented in specified production clusters. The scheme has the following sub-components, and each one of them is mandatory:

Integrated Value Chain Development Projects

1. 1. Formation of new FPOs in the cluster and/ or training/ workshop of existing farmers/ FPOs
   2. Post-harvest processing facilities
   3. Agri-logistics
   4. Marketing Infrastructure (can be anywhere in the Country and not necessarily in identified production clusters)

Standalone Post-Harvest Infrastructure Projects

For sub-component A of this part, projects intended to be established should be in the specified production clusters, and for sub-component B, in the State of the identified production clusters or neighboring districts of neighboring States.

Standalone storage facilities are not supported by the Ministry.

1. Infrastructure facilities for primary post-harvest processing at the farm level in the selected cluster
2. Infrastructure for handling and processing- post-harvest

Quality Production

A maximum of 5% of the overall Scheme allocation may be used for quality production. The Ministry will support this component through Central Governments, State Governments, and/or Research Institutions of Central Governments and/or State Governments.

Proposals for getting assistance under the scheme are invited through Expression of Interest (EOI). The applicant who satisfies the scheme’s eligibility requirements must submit an online application using the ministry’s SAMPADA site.

What are the eligible entities under the scheme?

To be eligible for the benefit under the scheme, an FPO shall consist of a minimum of 300 members (100 in case of difficult areas).

The following entities, mentioned below are eligible for financial assistance under the scheme.

• State Agriculture Federations
• State Marketing Federations
• Farmer Producer Organizations (FPO)
• cooperatives
• Self-help groups (SHGs)
• retail chains
• wholesale chains
• companies
• service providers
• supply chain operators
• food processors
• logistic operators
• Central Government (including entities/ organizations under the Central Government)
• State Governments (including entities/ organizations under the State Government)

Operation Green: Short-Term Interventions

The Scheme’s goals are to safeguard growers of Eligible Crops against distressed sales and to minimize post-harvest losses.

NAFED will be the Nodal Agency for putting in place the price stabilization measures. As per the provision of scheme guidelines, the Ministry of Food Processing Industry (MoFPI) will provide a 50% subsidy is provided under the following two components-

1. Transportation of eligible crops from surplus production cluster to consumption center
2. The hiring of appropriate storage facilities for TOP Crops (for a maximum period of 3 months)

Eligible Crops under the scheme

The following crops will be eligible under the Scheme (additional crops may be added in the future based on recommendations from expert bodies or the Ministry of Agriculture & Farmers Welfare, the Government of India, or a State Government):

Fruits covered under the scheme-

Mango, Passion Fruit, Pear, Sweet Potato, Banana, Orange, Kinnow, Lime, Lemon, Pineapple, Pomegranate, Guava, Kiwi, Litchi, Papaya, Mousambi, Jackfruit, Apple, Almond, Aonla, Chikoo, and Tender & De-husked Coconut.

Vegetables covered under the scheme-

Carrot, Tomato, Large Cardamom, Pumpkin, Cauliflower, Chillies (Green), Okra, Cucumber, Peas, French Beans, Bitter Gourd, Brinjal, Capsicum, Garlic, Onion, Potato, Ginger, Cabbage, Squash, and Turmeric.

Eligible Entities that can avail of financial assistance

• Individual farmers
• State Marketing/ Co-operative Federation
• Food Processors
• Group of Farmers
• FPOs
• FPCs
• Co-operative Societies
• Licensed Commission Agent,
• Exporters and Retailers etc.

Challenges in the implementation of Operation Green

The complexity of marketing intervention (processing and storage)- due to different climatic conditions, different seasons around the country, and different geographical location can make production and procurement of the same product difficult from different areas.

Interrupted Infrastructure Development- The viable and reliable infrastructure, and logistics including storage are yet to develop.

The organized market currently makes up a very modest portion of the entire production. A workable business plan must be created to build the market, which takes time and money.

Way forward

Major consumption and production centers are needed to be connected with the least number of intermediaries. The government can reduce huge price variations, increase farmers’ share of the price paid by the customer, and secure lower prices for the consumers by creating forward and backward linkages.

Article Written By: Priti Raj