Font size:
Print
Operation Greens
Context:
The government’s flagship Operation Greens scheme, aimed at stabilizing crop prices and benefiting farmers, has spent just 34% of its allocated budget for the fiscal year 2024-25.
- This comes as onion prices have plunged, causing significant losses for farmers in Maharashtra, and potato shortages persist in eastern states.
Underwhelming Performance:
- Budget Utilisation: Only ₹59.44 crore (34.27%) of the ₹173.40 crore allocated for 2024-25 had been spent as of October 2024.
- 65.73% of funds remain unutilized, raising concerns about meeting quarterly expenditure guidelines.
- Project Completion: Out of 10 operational projects targeted for this year, only 3 were completed by mid-October 2024.
Overview of Operation Greens:
- Launched in 2018, the scheme aims to stabilise crop prices, reduce post-harvest losses, and ensure farmers receive a fair share of consumer payments.
- Initially focused on Tomatoes, Onions, and Potatoes (TOP), it was expanded in 2021-22 to cover 22 perishable crops.
- Key features include developing farm gate infrastructure, creating a value chain, and mitigating price volatility.
Crisis in Maharashtra and the Eastern States:
- Plummeting Prices: Onion prices dropped by nearly 50% in 15 days due to surplus arrivals outpacing demand.
- Farmer Protests: Farmers demand the removal of the 20% export duty to boost exports and improve margins.
- Policy Flip-Flops:
- Export Ban (Dec 2023): Introduced to address domestic shortages, extended indefinitely, and lifted in May 2024.
- Minimum Export Price (MEP): Set at $550/tonne, combined with export duty, further eroded farmers’ profits.
- Affected States: Odisha and Jharkhand are grappling with shortages due to restrictions on potato supplies from West Bengal.
- Production Dip in Bengal: Unseasonal rains and black frost reduced yields, straining interstate supply chains.
Challenges:
- Budget Utilisation Gaps: Inadequate spending limits the scheme’s ability to build necessary infrastructure and stabilize prices.
- Policy Inconsistencies: Export bans and restrictive pricing measures have exacerbated farmer discontent.
- Geographical Disparities: While Maharashtra struggles with surpluses, eastern states face shortages, reflecting operational inefficiencies.
- Unaddressed Mandate: The scheme’s dual objectives of protecting farmers’ earnings and ensuring year-round consumer affordability remain unmet.
Way Forward:
- Policy Stability: Develop consistent and predictable policies to balance farmer and consumer interests.
- Infrastructure Expansion: Accelerate the completion of farm gate infrastructure to reduce post-harvest losses.
- Better Fund Allocation: Ensure timely utilization of budget allocations to comply with expenditure guidelines.
Collaborative Solutions: Engage with farmers, state governments, and industry stakeholders to address regional disparities and market challenges.
