Operation Greens

Operation Greens is a key agriculture scheme launched by the Government of India in 2018. The policy need behind this initiative was to stabilize the supply and prices of essential perishable crops across the nation. Specifically, the scheme was initially focused on three crops: Tomato, Onion, and Potato (TOP).

The primary problem Operation Greens addresses is the sharp price volatility and high post-harvest losses that severely impact both farmers and consumers in India. When there is a glut in production, farm-gate prices crash, leading to distress sales by farmers. Conversely, during shortages, consumer prices spike. Operation Greens aims to solve this by creating integrated value chains.

The scheme provides financial benefits and support for two main components: short-term price stabilization measures (like subsidies on transportation and storage) and long-term development of infrastructure (such as processing facilities and logistics). The broad target group includes farmers, Farmer Producer Organizations (FPOs), cooperatives, Self-Help Groups (SHGs), and entrepreneurs involved in food processing. Eligibility and application details are managed by the Ministry of Food Processing Industries.

Overview of the Scheme

Operation Greens is a Central Sector Scheme being implemented by the Ministry of Food Processing Industries (MoFPI), Government of India. Initially launched in 2018 for Tomato, Onion, and Potato (TOP) crops, its scope was significantly expanded later to cover many more perishable fruits and vegetables. The scheme is co-terminus with the 15th Finance Commission Cycle (up to FY 2025-26).

Key Components and Funding Pattern

The overall strategy of Operation Greens is divided into two major intervention areas:

• 1. Long-Term Integrated Value Chain Development Projects:
  • Coverage: This component focuses on creating infrastructure like processing facilities, agri-logistics, appropriate storage, and marketing links within identified production clusters. The scope has been enlarged to cover 22 perishable crops (10 fruits, 11 vegetables including TOP, and Shrimp).
  • Funding Pattern: MoFPI provides a grant-in-aid of 35% of the eligible project cost in General Areas and 50% in Difficult Areas (and for FPOs/SHGs/SC/ST applicants), subject to a maximum of ₹15 crore per project (or ₹10 crore for standalone projects).
• 2. Short-Term Price Stabilisation Measures:
  • Coverage: This acts as a market intervention mechanism, providing a 50% subsidy on transportation and storage costs for eligible crops when prices fall below a pre-determined trigger price. This ensures farmers do not make distress sales. The coverage for short-term measures was expanded to 42 fruits and vegetables.
  • Example: If Onion prices in a major cluster crash, an FPO can claim a 50% subsidy on the cost of transporting the surplus stock to a cold storage facility for up to three months.

The scheme operates on a demand-driven funding pattern, meaning funds are allocated based on applications received for projects, not a predefined crop-wise or state-wise budget. The primary implementing agency is MoFPI, and the National Agricultural Cooperative Marketing Federation of India (NAFED) is designated as the Nodal Agency for implementing the price stabilisation measures (short-term interventions).

Objectives 

The primary purpose of the Operation Greens agriculture scheme is to bring stability and efficiency to the supply chain of perishable produce in India. The objectives focus on creating a supportive ecosystem from the farm gate to the consumer, thereby maximizing value for all stakeholders.

Key goals driving Operation Greens include:

• Enhance the production, post-harvest management, and processing of identified perishable crops, with an initial focus on Tomato, Onion, and Potato (TOP).
• Stabilize the supply of target crops and mitigate price volatility by connecting production clusters directly to consumption centres.
• Reduce post-harvest losses by promoting infrastructure development for better storage, handling, and transportation.
• Ensure better price realization for farmers by increasing their share of the consumer rupee through organized marketing and processing.
• Promote food processing capacity across the country, especially in the production clusters, to boost value addition and create employment.

These Operation Greens objectives are designed to implement a holistic approach to address the cyclical challenges of surplus and scarcity that affect the Indian horticulture sector.

Key Features / Benefits 

The Operation Greens scheme offers substantial financial and infrastructural benefits to create stable, resilient, and integrated supply chains for perishable horticultural produce. The features are divided into short-term support for price stability and long-term grant assistance for value chain development.

I. Short-Term Price Stabilization (Immediate Support)

• Subsidy on Transportation:
  • The scheme provides a 50% subsidy on the cost of transporting eligible crops from surplus production areas to markets where prices are higher. This prevents a distress sale by farmers when there is a glut in their local market. (Example: An FPO shifting Onion stock from a cluster with crashing prices to a major consumption center.)
• Subsidy on Storage:
  • Beneficiaries receive a 50% subsidy on the cost of hiring appropriate storage facilities, including cold storage, for a maximum period of three months. This enables farmers/traders to withhold produce during a price crash and release it when prices stabilize.
• Wider Crop Coverage:
  • Initially for Tomato, Onion, and Potato (TOP), the short-term intervention was expanded to cover 42 fruits and vegetables (TOTAL) to provide wider market intervention and post-harvest assistance.

II. Long-Term Value Chain Development (Infrastructure Grant)

• Financial Grant for Infrastructure:
  • Financial assistance is provided for setting up capital assets like processing units, cold storage, quality control labs, and agri-logistics facilities within a production cluster.
  • The general grant rate is 35% of the eligible project cost, up to a maximum of ₹15 crore per project.
• Higher Subsidy for Specific Beneficiaries:
  • A higher financial subsidy of 50% of the eligible project cost is available for projects in Difficult Areas (like North-Eastern and Himalayan States) and for applicants like Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Scheduled Castes (SC), and Scheduled Tribes (ST) entrepreneurs, maximizing the impact of the features. (Example: An FPO establishing a pineapple processing unit in a North-Eastern State gets greater support.)
• Support for FPO Capacity Building:
  • The scheme encourages the formation and strengthening of FPOs, offering support for their professional management, training, and connecting them directly with processing units and markets to ensure better price realization.

These Operation Greens benefits are designed to reduce post-harvest losses, increase the processing level, and stabilize prices for both producers and consumers in India.

Eligibility Criteria 

The Operation Greens scheme is designed to support a wide range of entities involved in the value chain of eligible perishable crops. Eligibility varies slightly between the long-term infrastructure projects and the short-term price stabilization measures.

Who Can Apply (Long-Term Integrated Projects):

The long-term component, which provides financial assistance for creating processing and storage infrastructure, is open to registered entities that can execute large projects:

• Farmer Producer Organizations (FPOs) / Farmer Producer Companies (FPCs): FPOs must have a minimum of 300 members (this requirement is lower for Difficult Areas, where 100 members suffice). FPOs/FPCs receive preferential treatment with a higher subsidy rate.
• Entrepreneurs / Companies / Proprietorships / Startups: Any private entity, including food processors, logistics operators, and service providers, is eligible, provided they meet certain financial criteria (e.g., net worth must be at least 1.5 times the grant-in-aid sought).
• Cooperatives / Self-Help Groups (SHGs): Registered cooperatives and SHGs are also encouraged to apply, especially those located within the production clusters.
• Government Entities: Central and State Public Sector Undertakings (PSUs) and their entities/organizations are also eligible.
• Special Categories: Projects in Difficult Areas (like North-Eastern and Himalayan States) and those promoted by SC/ST applicants or FPOs/SHGs are eligible for a higher grant-in-aid (50% instead of 35%).

Mandatory Documents and Conditions:

To prove eligibility for the long-term project grant, applicants must submit several key documents:

• Detailed Project Report (DPR): A comprehensive plan detailing the project, financial profile, and raw material availability.
• Certificate of Registration: The necessary incorporation/registration certificate (e.g., CIN, FPO registration) along with MoA/AoA.
• Financial Documents: Audited financial statements for the last two years and a certificate of net worth from a Chartered Accountant (CA).
• Term Loan Sanction: An in-principle or final term loan sanction letter from a scheduled commercial bank, covering a minimum of 20% of the total project cost.
• Land Proof: Proof that the land for the project is in the applicant’s name or a registered lease deed for a minimum of 15 years.

Application Process

The process to apply online for assistance under Operation Greens is managed by the Ministry of Food Processing Industries (MoFPI) through its dedicated portal. The procedure differs significantly between the long-term project grant and the short-term subsidy claim.

I. Long-Term Project (Infrastructure Grant) Application Flow

1. Portal Visit: Applicants must visit the official SAMPADA portal of MoFPI: https://sampada-mofpi.gov.in/.
2. Expression of Interest (EOI): MoFPI periodically floats an Expression of Interest (EOI) or a request for proposal (RFP). The application must be submitted during this window.
3. Registration & Submission: Eligible entities must register, fill out the detailed application form, and submit the complete proposal online.
4. Documents & Fee: Key documents include the Detailed Project Report (DPR), bank sanction letter for the Term Loan (minimum 20% of project cost), financial statements, and proof of land/lease. A non-refundable application fee (e.g., ₹20,000 for General Category) must be paid, often via a Demand Draft (DD) submitted physically to MoFPI.
5. Verification and Release: The ministry evaluates the proposal, conducts an inspection, and upon approval, an approval letter is issued. The assistance (grant) is released in installments (e.g., 30% per instalment) linked to the project’s physical and financial progress, often subject to a certification from a Chartered Accountant (CA) and a Project Management Agency (PMA) inspection.

II. Short-Term Intervention (Transportation/Storage Subsidy Claim)

• No Prior Approval: Unlike the long-term project, there is no prior approval required before undertaking the transport or storage activity under this component, provided the crop’s price is below the notified trigger price.
• Registration and Claim: Eligible entities must first register on the SAMPADA portal. After incurring the cost of transport and/or storage, the entity submits the subsidy application form online.
• Mandatory Documents: Essential documents for the claim include transport and storage invoices, payment proof (only banking channel transactions are accepted), weighbridge receipts, and geo-tagged photographs. The claim must be submitted within three months of the transport or storage invoice date.
• Subsidy Release: The subsidy (50% of the eligible cost) is disbursed after scrutiny and verification by the designated Nodal Agency (NAFED) and MoFPI.

Tips for a Smooth Application

• Bank Loan Mandatory: Ensure you have an in-principle or final term loan sanction letter from a bank covering at least 20% of the project cost before submitting the long-term application.
• Document Alignment: All names, addresses, and land details in the application form must exactly match the supporting documents.
• Cash Transactions: For the short-term subsidy, all payments for transportation and storage must be made through banking channels; cash payments are not eligible for reimbursement.

Challenges or Limitations 

While Operation Greens offers significant support, applicants should be aware of certain challenges and limitations to ensure a smoother process. Understanding these common hurdles can help in successful scheme utilization.

• Challenge: Lengthy Verification Process. The detailed scrutiny of the Detailed Project Reports (DPRs) and financial documents for infrastructure grants often causes approval delays.
  • Solution: Submit a well-researched, financially sound DPR with all mandatory documents attached initially to minimize back-and-forth queries.
• Challenge: Strict Banking Channel Requirement. For short-term subsidies, only transport/storage costs paid through bank transfers are eligible; cash transactions are not accepted.
  • Solution: Always pay vendors via NEFT, RTGS, or cheque and retain clear bank statements as proof of transaction.
• Challenge: Grant Disbursal Linked to Progress. The grant-in-aid for infrastructure projects is released in installments, often requiring inspection and progress certification before the next tranche.
  • Solution: Maintain accurate project records and proactively coordinate with the assigned Project Management Agency (PMA) to schedule timely inspections.
• Challenge: Limited Budget Headroom. The scheme operates on a demand-driven basis, and if the project cost exceeds the sanctioned bank loan or the maximum allowable subsidy, the applicant must arrange the shortfall.
  • Solution: Ensure financial planning covers the required margin money and any cost overruns beyond the maximum permissible grant.

Government Support & Future Outlook 

The success of Operation Greens is significantly bolstered by its convergence with other major government initiatives, ensuring maximum linkage benefits for farmers and entrepreneurs.

• Integrated Support: The scheme operates as a component of the broader Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and is aligned with the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme.
  • Practical Example: An FPO setting up a cold storage under Operation Greens (long-term grant) can also access the Agriculture Infrastructure Fund (AIF) for interest subvention on the required term loan.
• Logistics Linkages: The short-term price stabilization measures are synergized with the Kisan Rail and Krishi Udaan schemes, which offer a 50% subsidy on freight charges for the fast and efficient transport of perishable crops across India.
• Future Update: The scope of the scheme has been officially expanded from the original Tomato, Onion, and Potato (TOP) to a TOTAL of 22 perishable crops (including fruits, vegetables, and shrimp), signaling a major update and commitment to a more diverse and resilient agricultural value chain.

The future plans emphasize strengthening these linkages and leveraging market intelligence platforms like MIEWS (Market Intelligence and Early Warning System) to ensure timely interventions.

Conclusion 

Operation Greens is a pivotal agriculture scheme designed to address the critical issues of price volatility and post-harvest losses in India’s perishable supply chain. By offering substantial benefits, including grants for infrastructure and subsidies for transport, the scheme creates a win-win situation: stabilizing consumer prices while ensuring better realization for farmers and FPOs. Those actively engaged in processing and logistics, especially FPOs and entrepreneurs, stand to benefit most from the long-term infrastructure support. To start leveraging this scheme, the immediate action step is to check your project’s eligibility and prepare the detailed project report (DPR) for the MoFPI grant, or submit a claim for the short-term subsidy via the official SAMPADA portal. Always verify the latest guidelines and subsidy rates on the official government website before you apply.