Saturday, November 10, 2018

A plan to fix sharp swings in veggie prices - economic news of india - world economic news - economics news for students - indian economy news

A plan to fix sharp swings in veggie prices
Speaking in Bengaluru in February, Prime Minister Narendra Modi reassured farmers that they were his TOP priority. He said by TOP he meant tomato, onion and potato. "We have launched 'Operation Green' in interest of these farmers. 'Operation green' would be beneficial for farmers just like the Amul model was successful in dairy," he said. TOP prices carry heavy political significance. Fluctuating prices of tomato, onion and potato have often impacted electoral prospects of incumbent parties. Perhaps the government had that too on its mind when it started Operation green to stabilize TOP prices across the country.What is Operation Green?The scheme was announced in the Union Budget 2018-19 with an outlay of Rs 500 crore to stabilise the supply and prices of TOP crops. While plunging prices of these crops hit farmers, when the prices skyrocket the buyers are affected. By establishing linkages and infrastructure involving farmers, food processing industry and the market, Operation Green will aim to contain fluctuation in TOP prices. The government has recently approved guidelines for Rs 500 crore Operation Green programme to boost production and processing of TOP crops.How it worksThe government has laid down special measures and grants-in-aid under the scheme to ensure enhanced production of TOP crops and to augment value chain. The scheme aims to reduce post-harvest losses by creation of farm gate infrastructure, agro-logistics and storage capacity. It would help increase processing capacities and value addition. A market intelligence network would also be established to collect and collate real-time data on demand and supply and price of these crops. The scheme will boost storage and food-processing infrastructure at 23 pre-identified hubs across 20 states. FundingThe pattern of assistance under Operation Green will comprise of grants-in-aid at the rate of 50 per cent of the eligible project cost in all areas, subject to maximum Rs 50 crores per project. However, in case of farmer producer organisations, the grant-in-aid will be at the rate of 70 per cent of the eligible project cost in all areas, subject to maximum Rs 50 crore per project.The eligible organisation for availing financial assistance would include state agriculture and other marketing federations, farmer producer organisations, cooperatives, companies, self-help groups, food processors, logistic operators, service providers, supply chain operators, retail and wholesale chains and central and state governments and their entities/organisations.
Source: ET