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The government’s flagship Operation Greens scheme, designed to stabilise crop prices and benefit farmers, has spent just 34 per cent of its allocated budget for 2024-25, according to a parliamentary report, even as onion farmers in Maharashtra reel from massive losses and potato shortages grip eastern states.
Launched in 2018, the scheme aimed to increase farmers’ earnings and their share of what consumers pay for the crops by creating farm gate infrastructure, which allow farmers to store goods until they get better prices, like storage facilities.
It also planned to develop a value chain and initially focused on tomatoes, onions, and potatoes (TOP) to reduce extreme price fluctuations and post-harvest losses. In 2021-22, the scheme was expanded to cover 22 perishable crops.
However, the scheme’s performance remains underwhelming, highlighted a report by the Parliamentary Standing Committee on Agriculture, Animal Husbandry and Food Processing tabled on December 17, 2024.
Only Rs 59.44 crore of the Rs 173.40 crore allocated budget had been utilised by October 11, 2024, representing just 34.27 per cent of the Budget Estimate (BE), noted the committee, headed by Member of Parliament Charanjit Singh Channi, who belongs to the Indian National Congress.
With 65.73 per cent of the budget remaining, the Union Ministry of Food Processing Industries, under which the scheme falls, may struggle to comply with the Department of Expenditure guidelines, which prescribe quarterly expenditure ceilings, the report said. Moreover, of the 10 operational projects targeted for completion this financial year, only three had been completed as of October 14, 2024.
As the financial year enters its final quarter, the unspent funds and incomplete projects under Operation Greens raise questions about the scheme’s effectiveness and the government’s ability to address the challenges of volatile agricultural markets.
The limited success of the scheme is starkly evident in Maharashtra, where onion farmers are grappling with a price crash. Onion prices have fallen by nearly 50 per cent in just 15 days, driven by a surplus of arrivals that outpaced demand. Farmers have been protesting and demanding the removal of a 20 per cent export duty to boost exports and improve their margins.
Onion growers’ frustration with the government is rooted in its many policy flip-flops over the past year that favoured consumers over farmers.
In December 2023, the government banned onion exports to address domestic supply shortages and to ensure that it is available to domestic consumers at reasonable prices. Initially set to end on March 31, 2024, the ban was extended indefinitely before being lifted on May 4.
However, the imposition of a minimum export price of $550 or Rs 45,884 per tonne while levying an export duty further eroded farmers’ margins, fanning their anger.
While onion farmers protest their plight, states like Odisha and Jharkhand are contending with a potato shortage. Restrictions on potato supply from West Bengal, which saw a production dip due to unseasonal rains and black frost, have exacerbated the issue.
The crises highlight the challenges Operation Greens faces in achieving its dual mandate — ensuring farmers receive fair prices for their crops while maintaining affordable consumer prices year-round.