The impact of COVID-19 on every sector of the Indian economy has been very devastating. Its impact on agriculture and its diverse segment that forms the basis of its supply and value chain has been rather complex and is expected to linger longer than a few months.
Globally, the Food and Agriculture Organisation (FAO) expects shifts in the supply of and demand for food. It warns of a world “food crisis” if countries do not protect vulnerable people from hunger and malnourishment, and de-clog food supply chains. Similarly, the United Nations has warned that the Covid-19 crisis could trigger “food shortages” around the world. The World Food programme (WFP) has noted that the Covid-19 crisis is “threatening to affect millions of people already made vulnerable by food insecurity and malnutrition.
During these challenging times, how does Indian Agriculture respond to the crises. Small and marginal farmers will also be badly affected if they are unable to continue working their land, earn remunerative product prices, and gain access to markets for purchase or sale. The response Indian government has involved 3 policy measures
- Agricultural activities being announced in the essential lists.
- Advance release of 1st instalment of PM Kisan payment to farmers, i.e., Rs 2000 to be paid up front to the farmers
- RBI announcing moratorium on agricultural term loans for a period of 3 months
In the budget speech of Union Budget 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood”, with an outlay of Rs.500 crore to promote Farmer Producers Organizations, Agri-logistics, processing facilities and professional management. Operation Greens aimed to stabilise the supply of Tomato, Onion and potato (TOP) and ensure their availability throughout India round the year without price volatility
On May 12 2020, Finance Minister Nirmala Sitharaman announced a slew of measures to revive the economy. ‘Atma Nirbhar Bharat Abhiyan‘ package of Rs. 20 lakh crores focused on agriculture, fisheries, animal husbandry and allied industries along with industrial sector. This package is 10% of India’s total GDP.
500 crores from this package has been allotted to ‘Operation Greens’ the central sector scheme which being implemented by the Ministry of Food Processing Industries. The operation is now extended from ‘TOP’ Crops to all the crops since COVID-19 pandemic has disturbed the entire supply chain of all the agri-produce.
MoFPI on June 11, 2020, issues Guidelines for short term intervention for all fruits and vegetables under Operation Greens.
The scheme has two-pronged strategy
- Price stabilization measures (for the short term)
- Integrated value chain development projects (for the long term).
The salient feature of the guidelines are- - Scheme validity – 6 months (as a pilot)
- Eligible Crops: – Following fruits & vegetables, on the basis of recommendation received from the Ministry of Agriculture will be eligible
- Assistance pattern- 50% subsidy for transportation from surplus and deficient markets. 50% subsidy given on storage, including cold storage
- Essential Conditions- the subsidy would be disbursed to eligible candidate in cse the price in notified production cluster meets any-one following condition-
- The price falls below the preceding 3 years’ average market price at the time of harvest;
- The price fall more than 15% compared to last year market price at the time of harvest
- The price fall less than the benchmark price for procurement, if any, fixed by the State/Central Government for a specified period
- Expected Outcome- Better price realization to farmers, reduced wastages and affordability of agri products for consumers
The major objective of the intervention is to protect the growers of fruits and vegetables from making distress sale due to lockdown and reduce post-harvest losses.
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