The Operation Greens scheme, initiated by the Government of India in 2018, aims to stabilise crop prices and enhance farmers’ earnings. As of 2024, a parliamentary report reveals that only 34 per cent of its allocated budget for 2024-25 has been utilised. This comes amid challenges faced by farmers, particularly in Maharashtra’s onion sector, where prices have plummeted.
Overview of Operation Greens
Operation Greens was launched to support farmers by creating infrastructure for storage and reducing post-harvest losses. Initially focused on tomatoes, onions, and potatoes, the scheme expanded to cover 22 perishable crops in 2021-22. The goal is to ensure that farmers receive a fair share of consumer prices.
Budget Utilisation and Performance
As of October 2024, only Rs 59.44 crore of the Rs 173.40 crore budget had been spent. This low utilisation rate raises questions about the scheme’s effectiveness. The report indicates that the Union Ministry of Food Processing Industries may struggle to meet expenditure guidelines, which could hinder future operations.
Challenges for Onion Farmers
Farmers in Maharashtra are experiencing severe financial distress due to a drastic 50 per cent drop in onion prices within two weeks. This price crash is attributed to an oversupply of onions. Farmers are protesting against a 20 per cent export duty and demand the removal of this duty to improve their profit margins.
Government Policies and Farmer Discontent
The government’s fluctuating policies have frustrated farmers. In late 2023, a ban on onion exports was implemented to ensure domestic supply. This ban, initially set to expire in March 2024, was extended indefinitely, further aggravating farmers’ situations. The introduction of a minimum export price has also diminished their earnings.
Potato Supply Issues
In addition to onion troubles, states like Odisha and Jharkhand are facing potato shortages. This is largely due to reduced supply from West Bengal, where production has been impacted by adverse weather conditions. The potato crisis marks the broader challenges that Operation Greens must navigate.
Conclusion on Scheme Effectiveness
The ongoing issues with price instability and supply shortages tell the difficulties faced by the Operation Greens scheme. The need for a balance between fair prices for farmers and affordable rates for consumers remains challenge.
Questions for UPSC:
- Examine the impact of government policies on agricultural pricing in India.
- Discuss in the light of recent agricultural crises, the effectiveness of the Operation Greens scheme.
- With suitable examples, analyse the challenges faced by farmers in the context of crop price fluctuations.
- Critically discuss the role of infrastructure in improving agricultural productivity in India.
Answer Hints:
1. Examine the impact of government policies on agricultural pricing in India.
- Government policies often prioritize consumer prices, leading to export restrictions that can harm farmers’ earnings.
- Fluctuating policies, like the recent export ban on onions, create uncertainty for farmers and affect their financial stability.
- Minimum export prices and duties can further erode profit margins for farmers, as seen in the onion sector.
- Supportive policies, such as subsidies or price support mechanisms, can help stabilize farmer incomes.
- Long-term, consistent policies are essential for building trust and ensuring sustainable agricultural development.
2. Discuss in the light of recent agricultural crises, the effectiveness of the Operation Greens scheme.
- Operation Greens has only utilized 34% of its allocated budget, indicating poor implementation and effectiveness.
- The scheme aimed to stabilize prices but has failed to prevent drastic price drops, as observed with onion prices in Maharashtra.
- Limited completion of targeted projects (only 3 out of 10) raises concerns about operational efficiency.
- Despite initial successes, recent crises expose the scheme’s inability to adapt to market fluctuations and farmer needs.
- Increased focus on infrastructure development and timely policy responses could enhance the scheme’s effectiveness.
3. With suitable examples, analyse the challenges faced by farmers in the context of crop price fluctuations.
- Onion farmers in Maharashtra faced a 50% price drop due to oversupply, denoting vulnerability to market conditions.
- Export duties and bans can exacerbate price volatility, as seen with the recent onion export restrictions.
- Potato shortages in Odisha and Jharkhand due to supply issues from West Bengal illustrate regional disparities in crop availability.
- Unpredictable weather patterns, such as unseasonal rains, can lead to production dips, further complicating price stabilization.
- Farmers often lack access to timely market information, which can lead to poor decision-making regarding crop sales.
4. Critically discuss the role of infrastructure in improving agricultural productivity in India.
- Infrastructure, such as storage facilities, helps reduce post-harvest losses and stabilizes prices for farmers.
- Access to transportation networks ensures timely delivery of crops to markets, enhancing farmers’ bargaining power.
- Investment in irrigation and water management systems can improve crop yields and reduce dependency on monsoon rains.
- Technological advancements in agricultural practices, supported by infrastructure, can lead to higher productivity levels.
- However, inadequate infrastructure development can hinder the effectiveness of schemes like Operation Greens, limiting farmers’ benefits.
