OPERATION GREEN SCHEME: ECONOMY

NEWS: Operation Greens falls short: Only 34% of budget spent as onion prices plunge, potato shortages persist

 

WHAT’S IN THE NEWS?

The Operation Greens scheme, aimed at stabilizing crop prices and benefiting farmers, has utilized only 34% of its budget for 2024-25, while facing challenges like onion price crashes and potato shortages. Despite expansion, the scheme struggles with delayed projects and unmet objectives.

 

 

Objectives of the Scheme

  • Price Stabilization: To stabilize the prices of perishable crops by creating farm gate infrastructure.
  • Reducing Post-Harvest Losses: To set up storage facilities for farmers to store crops until they get better prices.
  • Increasing Farmers' Earnings: To increase farmers' share in the retail price and provide them better earnings.

 

Expansion of the Scheme

In 2021-22, the scheme was expanded to cover 22 perishable crops beyond the original focus on tomatoes, onions, and potatoes.

 

Current Performance

  • Budget Utilization: Only 34% of the allocated budget (Rs 173.40 crore) has been spent as of October 2024.
  • Delayed Projects: Of the 10 projects planned for the financial year, only three have been completed.
  • Struggling with Expenditure: The unspent funds raise concerns over the scheme's effectiveness and its ability to meet expenditure targets.

 

Issues Faced

  • Onion Price Crisis: Onion farmers in Maharashtra face a sharp price fall, worsened by the government's export restrictions and changing policies.
  • Potato Shortage: Shortages in Odisha and Jharkhand due to restrictions on potato supply from West Bengal, caused by unseasonal rains and frost.
  • Challenges in Achieving Dual Mandate: The scheme struggles to balance fair prices for farmers while maintaining affordable prices for consumers.

 

Conclusion

While the Operation Greens scheme aims to benefit farmers and stabilize crop prices, its underperformance, incomplete projects, and ongoing agricultural crises highlight the challenges it faces in fulfilling its objectives.

 

Source: https://www.downtoearth.org.in/agriculture/operation-greens-falls-short-only-34-of-budget-spent-as-onion-prices-plunge-potato-shortages-persis