Daily News Analysis 6th November 2018

Daily News Analysis (Prelims + Mains) – 6th November 2018

General Study – III

Topic:

Food processing and related industries in India- scope’ and significance, location, upstream and downstream requirements, supply chain management.

OPERATION GREENS

Ministry of Food Processing Industries(MoFPI) has approved the operationalisation strategy for Operation Greens.

The strategy involves short term and long term measures

Short term Price Stabilisation Measures

• National Agricultural Cooperative Marketing Federation of India will be the Nodal Agency to implement price stabilisation measures.
• MoFPI will provide 50% of the subsidy on the following two components.
• Transportation of Tomato Onion Potato(TOP) Crops from production to storage.
• Hiring of appropriate storage facilities for TOP Crops.

Long Term Integrated value chain development projects

• Capacity Building of FPOs & their consortium
• Quality production
• Post-harvest processing facilities
• Agri-Logistics
• Marketing / Consumption Points
• Creation and Management of e-platform for demand and supply management of TOP Crops.

The pattern of assistance will comprise of grants-in-aid at the rate of 50% of the eligible project cost in all areas, subject to maximum Rs. 50 crores per project.

Wherever PIA is/are FPO(s), the grant-in-aid will be at the rate of 70% of the eligible project cost in all areas, subject to maximum Rs. 50 crores per project.

Eligible Organisation to participate in the programme and to avail financial assistance are

• State Agriculture and other Marketing Federations, Farmer Producer Organizations (FPO), 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/organizations.

About Operation Greens

Operation Greens 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. Its announced on 2018-19 budget.

Operation Greens is essentially a price fixation scheme that aims to ensure farmers are given the right price for their produce.

Major objectives of Operation Greens

• Enhancing value realisation of Tomato Onion Potato(TOP) farmers by targeted interventions to strengthen TOP production clusters and their FPOs, and linking/connecting them with the market.
• Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual use varieties.
• Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
• Increase in food processing capacities and value addition in TOP value chain with firm linkages with production clusters.
• Setting up of a market intelligence network to collect and collate real time data on demand and supply and price of TOP crops.

Benefits  

• Operation Green will be very helpful initiative in doubling the income of farmers by the end of 2022.
• Set minimum support price of all kharif crops at 1.5 times the cost of production
• It will earn tax incentives to farmers.

Topic for Prelims

National Conference on Public Procurement & Competition Law

• It is organised by the Competition Commission of India (CCI) in Delhi.
• CCI has been associated with Indian Institute of Corporate Affairs (IICA), a think tank under the aegis of Ministry of Corporate Affairs. Ahead of the National Conference.
• Its unique initiative of the Commission which provides a platform to various stakeholders to engage in an active discussion with the policymakers and the industry on various aspects of competition law and public procurement.
• Infusing competition and checking anti-competitive conduct in public procurement is a priority for the CCI.

About Competition Commission of India

• Competition Commission of India is a statutory body of the Government of India responsible for enforcing The Competition Act, 2002 throughout India.
• The objectives of the Act are sought to be achieved through the Competition Commission of India (CCI), which has been established by the Central Government with effect from 14th October 2003.
• CCI also function as Quasi-Judicial body.
• CCI consists of a Chairperson and 6 Members appointed by the Central Government.
• It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.
• The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.