About Operation Greens

In the budget speech of Union Budget 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood”, with an outlay of Rs.500 crore to promote Farmer Producers Organizations (FPOs #), agri-logistics, processing facilities and professional management. Accordingly, the Ministry has formulated a scheme for integrated development of Tomato, Onion and Potato (TOP) value chain.

Objectives:

i. Enhancing value realisation of TOP farmers by targeted interventions to strengthen TOP production clusters and their FPOs, and linking/connecting them with the market.
ii. Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual use varieties.
iii. Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
iv. Increase in food processing capacities and value addition in TOP value chain with firm linkages with production clusters.
v. Setting up of a market intelligence network to collect and collate real time data on demand and supply and price of TOP crops.
 

Strategies:

The scheme will have two-pronged strategy of Price stabilisation measures (for short term) and Integrated value chain development projects (for long term).

(I) Short term Price Stabilisation Measures

NAFED will be the Nodal Agency to implement price stabilisation measures. MoFPI will provide 50% of the subsidy on the following two components:

i. Transportation of Tomato Onion Potato(TOP) Crops from production to storage;
ii. Hiring of appropriate storage facilities for TOP Crops;

Market Intelligence and Early Warning System

MIEWS Dashboard and Portal is a platform for monitoring prices of tomato, onion and potato (TOP) and for generating alerts for intervention under the terms of the Operation Greens scheme. The portal would disseminate all relevant information related to TOP crops such as Prices and Arrivals, Area, Yield and Production, Imports and Exports, Crop Calendars, Crop Agronomy, etc in an easy to use visual format.

(II) Long Term Integrated value chain development projects

i. Formation and Capacity Building of FPOs
ii. Quality Production
iii. Post-harvest processing facilities - At Farm Level
iv. Post-harvest processing facilities - At Main Processing Site
v. Agri-Logistics
vi. Marketing/Consumption Points

Project components

I. Price Stabilisation Measures

i. MoFPI will provide 50% of the subsidy through NAFED to empaneled agencies for evacuation of TOP crops from production surplus areas when price falls below three-years average market price at the time of harvest, for the following two components:
a) Transportation of TOP Crops from production to storage;
b) Hiring of appropriate storage facilities for TOP Crops;

II. Integrated Value Chain Development Projects

A. Capacity Building of FPOs & their consortium

i. Formation of New FPOs in the clusters selected for TOP;
ii. Promotional Activities, Training/Workshop of Farmers and FPOs;
iii. Professional Management Support to FPOs & Federation;

B. Quality production

i. Provision for quality inputs such as seeds;
i. Setting up of Nursery and greenhouses;
ii. Setting up of protected cultivation;
iii. Mechanisation of farm practices;
iv. Promote Contract farming;
v. Varietal change based on market;

C. Post-harvest processing facilities

i. Appropriate storage at Farm level;
ii. Collection centre (CC)/Pack house;
iii. Primary processing such as sorting, grading and packaging facilities;
iv. Secondary processing – any mechanised and mobile processing facilities;
v. Appropriate transportation infrastructure;

D. Agri-Logistics

i. Integrated multi-mode appropriate transportation;
ii. Controlled temperature/ Ventilated trucks with or without raking;
iii. Crates, rakes etc;
iv. Medium/large scale storage at regional, state and national level;

E. Marketing / Consumption Points

i. Appropriate storage facilities at aggregation/ market level;
ii. Sorting, grading and packaging facilities;
iii. Setting-up of retail outlets;
iv. Setting-up of marketing yards at the cluster level;
v. Creation of e-market;
 

Any other components/innovative intervention required to achieve the objective of the scheme for implementation of the project, but not covered above, may also be considered as eligible components by the sanctioning authority based on the merit of the case.

Pattern of Assistance

I. For Price Stabilisation Measures

50% of cost of transportation and 50% of cost of hiring appropriate storage facilities will be provided as subsidy at the time of harvest. Storage facilities will be hired for a maximum period of 4 to 6 months. NAFED will be nodal agency for disbursement of subsidy under this component to the eligible organization.

II. For Integrated value chain development projects

Since the scheme envisage integrated development of TOP value chain, it should preferably have all the components listed above from A to E (Para 4.2) under Integrated value chain development project. The Post-harvest processing facilities including secondary processing facilities will be mandatory components of the Integrated value chain development project. The projects will be eligible for grant-in-aid at the rate of 50% of the eligible project cost in all areas, subject to maximum Rs. 50 crore per project. However, in case where PIA is/are FPO(s), the grant-in-aid will be at the rate of 70% of the eligible project cost in all areas, subject to maximum Rs. 50 crore per project.

Eligible Organizations

For Integrated Value Chain Development Projects - Project Implementation Agency

1. 1. State Agriculture and Other Marketing Federations, Farmer Producer Organizations (FPO), Cooperative, Self Help Groups, Companies, Food Processors, Logistic Operators, Service Providers, Supply Chain Operators, retail and Wholesale Chains and central and state governments and their entities/organizations will be eligible to participate in the programme and to avail financial assistance. Any organization or group of organizations or individual undertaking any activity with financial assistance under the programme will be called the Project Implementation Agency.

Proposal received from SC/ST promoters holding 100% state in PIA, will be treated as SC/ST. In case of PIA being FPO, SC/ST promoters hold 51% stake in the PIA, it will be treated as SC/ST proposal. SC/ST proposals should be treated at par with FPOs as far as provisions relating to percentage grant-in-aid and other relaxations like EMD, net worth criteria and equity/term loan contribution is concerned.