In a bid to support farmers, Finance Minister Nirmala Sitharaman on Friday said that the 'Operation Greens' scheme whereby a subsidy is provided on transportation and storage, will be extended to all fruits and vegetable produce in the country.
So far, it was effective on transportation and storage of tomato, onion and potato only.
Terming the decision as "TOP to TOTAL", Sitharaman said that the government will shell out Rs 500 crore for the scheme.
Under the scheme, 50 per cent subsidy is provided on transportation from surplus to deficient markets. Further, the government also provides 50 per cent subsidy on storage of the produce including cold storage.
The scheme will run in a pilot phase for six months but will be expanded and extended thereafter.
Sitharaman noted that supply chains have been disrupted and farmers are not being able to sell their produce in the markets.
It would help in preventing distress sale and reduction of price of perishable fruits and vegetables at the farm level.
The decision is likely to help farmers get better price realisation, reduce wastages and affordability of products for consumers.
The announcement is part of the third tranche of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday.
( With inputs from IANS )