Context:

Recently, a report by the Parliamentary Standing Committee on Agriculture highlighted concerns over Operation Green’s slow progress due to its unspent funds and incomplete projects.

More on the News:

• The committee has urged the Ministry of Food Processing Industries to address these challenges to avoid the scheme's potential failure in achieving its objectives.
• The scheme’s underperformance and the crises farmers face highlight the challenges in fulfilling the scheme’s mandate.

Green Operation’s Poor Implementation

• For the financial year 2024-25, the government allocated Rs 173.40 crore for the scheme.
• As of October 11, 2024, only Rs 59.44 crore (34.27%) of the allocated budget had been utilized.
• With 65.73% of the funds unspent, concerns have been raised about meeting the expenditure ceiling set by the Department of Expenditure.
• The scheme targeted 10 operational projects for completion in 2024-25, but only 3 projects were completed by October 14, 2024.
• The delays and low utilisation of funds have raised questions regarding the scheme’s effectiveness and the government’s ability to address issues faced by farmers around the country.

Issues Faced by Farmers:

Onion Farmers in Maharashtra are facing a price crash, with onion prices falling by nearly 50% in just 15 days due to surplus arrivals and reduced demand.

Farmers have been protesting, calling for the removal of a 20% export duty to boost exports and enhance their margins.

• In December 2023, the government banned onion exports to control domestic prices, lifting the ban in May 2024 but imposing a minimum export price and export duty, further impacting farmers' profits.

States like Odisha and Jharkhand are grappling with potato shortages further exacerbated by restrictions on supplies from West Bengal.

• There is a drop in potato production in West Bengal due to unseasonal rains and black frost has led to the shortage.

Operation Greens

It was launched in 2018 and aims to stabilize prices of key crops, reduce post-harvest losses, and ensure better income for farmers.

It was designed to balance the interests of farmers by ensuring fair prices for their produce and consumers by maintaining affordable prices year-round.

Initially focused on Tomatoes, Onions, and Potatoes (TOP), it aimed to reduce extreme price fluctuations and establish storage infrastructure.

In 2021-22, the scheme was expanded to cover 22 perishable crops.

Under the scheme, Subsidy is provided at 50% on the following two components as per the provisions of scheme guidelines:

• Transportation;
• Hiring of appropriate storage facilities for TOP Crops.