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  • Agriculture and allied sector account for about 18% of the total GDP.
  • 57% of Indian work force directly or indirectly engaged in agriculture related profession.
  • India is top in the production of many agricultural products like pulses, cereals, spices etc.
  • Though high in production economic condition of farmers is still poor and farmer suicide is increasing day by day.
  • CPI Inflation at all India level of 2016-17 was mainly driven due to prices of vegetables and fruits.
  • Finance minister proposed to launch operation green, while presenting union Budget of 2018–19.


  • Prize fixation scheme – ensure that farmers are given right price for their produce.
  • The idea is to double the farmer income by 2022.
  • Focus is on basic ingredients and not on additional commodities in agriculture.

# promote FPO (Farmer Producers Organization), agri logistics, processing facilities, and professional management.

  • First step is to help control and limit the price fluctuations of tomatoes, onions and potatoes (TOP).
  • Allocated seed capital of 500 crore for this in the line of operation flood.
  • Set up MSP (minimum support price) of all kharif crop at 1.5 times the cost of production.

# will increase farmers income.

  • Tax incentives for consumers will be given.
  • 470 APMC (Agricultural Produce market Committee) promoted market will be connected to e-NAM
  • Government develop 22000 agricultural market.


  • These 3 are consumed through out the year but are seasonal and regional in production.

Making it difficult to connect farmer and consumers.

  • When their production rises sharply, their prices collapse.

# does not have enough modern storage capacity for these perishable items.

# the link to processing and organized retailing are very weak and small.

# farmers suffer from a loss as the price they get in return for their product will be less due to less demand.

# But when there is a price rise, this will be taken by middle man.

  • Hence farmers often end up getting less than one fourth of what consumers are paying in major cities.
  • So it affects both consumer and producer and is a part of daily menu of every Indian – 1st focus is on TOP.



  • Illiteracy among farmers.

# not aware of the schemes and initiatives.

# as will not understand the technicalities in details has to depend on middle man but often get cheated by getting wrong information.

# As per Economic Survey more than 30 % of the farmers are illiterate.

  • Scarcity of capital

# though farmers are given subsidy ,need to  first pay the entire amount .later the subsidy amount will be credited to the bank account .

# But farmers who don’t have the initial amount will fail to avail the scheme.

  • Small and fragmented land holdings

# most of the Indian farmers are marginal farmers with less land holding.

# prevent them from implementing modern technology.

  • High cost of agri – inputs

# high quality seeds used  are costly and cannot be used to produce the seed for next year.

# so will not be economically viable for farmers.

# As per Economic Survey, farmers having large land holdings are not using agri inputs.

  • Lack of proper irrigation

# largely depends on monsoon.

# lack of monsoon lead to crop failure.

clip_image006.jpg# As per Economic Survey 2017-18, only 34% of net irrigated area to total cropped area is under irrigation.

# UP and Punjab are the only states having net irrigated area above 50%.

  • Lack of technology

# cause waste of human labor and reduce agriculture productivity.

  • Lack of information

# not able to decide the best crop for the land and the agro chemicals needed for the crop.

  • Poor marketing services

# middle man reap the benefit by taking advantage of farmers as most of them depends on middle man .

  • Inadequate post harvest storage and transportation facilities

# this compels the farmers to sell their product at throw away prices .


  • Ensure majority of profit goes to farmers

# at least 60-70 % of profit must be given to farmers as 75-80% of the price given by milk consumers went to farmers in case of operation flood.

  • Link major consuming centers with producing centers

# will reduce intermediate people.

# map mega consuming centers first and then link their retail network with producing centers of each commodity identified.

  • Organize farmers in farmer producing organization.

# there was milk cooperative society in case of operation flood.

  • APMC act has to be changed to allow direct buying from FPO.

# APMC must be connected with e NAM.

# like national milk grid connected milk producers, e NAM must connect farmers to eliminate middle man.

  • Give incentive to FPO, private companies and NGOs

# to build back end infrastructure as was done for operation flood.

# Income tax concession has been given to FPO for five years, if it encourages building critical infrastructure -similar steps are needed.

  • Investment in logistics

# minimize wastage like ware houses, cold storage etc.

# must be cost effective – solar roof tops can be used in case ware house as it reduce electricity cost.

  • Link production centers with processing industry and organized retailing

# part of the produce must be processed to make things like potato chips ,dehydrated onions etc.

# will add value and absorb surplus as similar steps were taken during operation flood processing surplus milk into milk powder etc.

# will reduce price fall during surplus production.

  • Identify states that lead in the production of TOP.
  • Modernization of agriculture
  • # increased production in milk during operation flood was achieved by modern technologies like better feed and health care to cattle.

#similarly use modern technologies like high yielding varieties of crops, control of crop diseases.


  • Ministry of food processing has started discussion with various stake holders to take operation green forwarded.
  • The cabinet is likely to consider the proposal to launch the scheme soon.