India continues to be a major participant in the global agriculture sector. Unfortunately, unfulfilled demand for the sale of perishables leads to major avoidable wastage. This represents a wasted potential, loss of resources, and loss of potential profit to the consumer. When perishables go unsold, both the producer and consumer endure losses.
Reducing this lost potential motivated the new phase of ‘Operation Greens 2.0’. Here the Indian government provides support to entrepreneurs to ‘fill in’ the ‘business gaps’ in collection and surplus storage in perishables and other food items.
This case study review government initiatives and the evolution of a food business to include portable cold storage systems, multi-tiered food transportation and trade in various grades and shelf-stabilized forms, strategic food space design, and the range of food offered.
Read More: Step-by-Step Guide to Starting a Food and Beverage
What is Operation Greens 2.0 About?
As an initiative of the Ministry of Food Processing Industries (MoFPI), Operation Greens 2.0 focuses on the creation of a comprehensive and efficient food supply chain to cut the direct and farm to consumer sales in a bid to reduce food wastage.
22 Eligible Crops
Initially, the program started with only 3 items, which are Tomatoes, Onions, and Potatoes (TOP), and has now grown to 22 items that are categorized under perishable goods.
Some now included perishable fruits are Mango, Banana, Apple, Pineapple, Orange, Guava, Lychee, Pomegranate, Aonla, and Grapes.
Several perishable vegetables are also included such as Potatoes, Tomatoes, Onions, Green Peas, Carrots, Cauliflower, Okra, Beans, Garlic, and Ginger, as well as other Gourd family vegetables like Bottle and Bitter Gourd.
The scheme also incorporates Marine life with the inclusion of Shrimp.
How Many Subsidies are Available?
To encourage investments, especially for new projects, the government usually offers subsidized assistance of 50% for which the projects are divided into different categories of investments.
- Short-term assistance. This is mainly in the form of subsidized transport assistance of 50% for transporting eligible crops from the farm to the processing centers and also covers cost of refrigerated trucks and cold-storage during transit. This is highly effective in the disposal of surplus crops during the harvesting season.
- Long-term assistance. Financial aids are extended to construct integrated value chain projects and new food processing units which include investments of 35% to 50% subsidized capital. Each of these projects has no capped subsidy support of ₹50 crores.
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Which Business Can You Start? (Business Suggestions)
New Trend Cold Modernized Storage Facilities and Combi Cold Storage Facilities are examples of projects within the framework that can also be undertaken profitably. Cold storage can be multi-dimensional and can accommodate and serve numerous customer requirements.
Combi Cold Storage
These large facilities handle multiple different fruits and vegetables and can alter temperature zones and different containers for individual storage.
Controlled Atmosphere (CA) Storage
CA Long term storage facilities use warm dry air storage on certain fruits (mostly apples) that are stored for off-season sales and can be more profitable.
Food Processing and Value Addition
Experts believe that the most profitable opportunity in the food industry is processing primary agricultural products into secondary products. Because we can store secondary products more easily with a longer shelf life.
Individual Quick Freezing (IQF)
In response to the demand for frozen vegetables in major cities and for exports(specifically green peas, sweet corn, and chopped carrots) a freezing unit can be the best.
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Pulp and Concentrate
Currently, there is an opportunity to serve food and beverage industries, and some final consumers, with raw products such as mango pulp, tomato puree, and orange concentrate, as well as to initiate the sales of these raw products.
Dehydration Unit
From the dried vegetables and an array of commercial spices, dehydrated instant ingredients such as dried onion, powders of garlic and ginger, and others, one can formulate and package for sale, commercial grade noodle and soup mixes.
Ready-to-Cook (RTC) Products
A potential area for innovation is the marketing and sale of ginger-garlic paste, sambar mixes, and biryani mixes. The ease of their preparation and sale can demonstrate the capacity for expanding our portfolio and new offerings.
Smart Logistics and Supply Chain
A new innovation in business for the company would be the provision of refrigerated (reefer) transport to farmers, Farmer Producer Organizations (FPOs), and processing units. This includes the use of refrigerated trucks from your fleet, which would qualify for the transport subsidy.
5 step action plan to get things moving
- Choose Your Crop Niche: Start with one of the 22 crops, and determine which business model aligns with your budget and area (cold storage, IQF, etc.).
- Prepare Your Detailed Project Report (DPR): Your Diplomacy Project Report is your business plan. It contains the details of the project, estimated budget, projected finances, and market studies. For both commercial bank loans and government loans, financial assistance, and subsidy schemes, a professionally prepared affordable appropriation the Draft Project Report Diplomacy is essential.
- Register Your Business: Your business has to be registered as a sole proprietorship, limited partnership, or a private limited company. You then also need to get the necessary business licenses, which typically include the FSSAI and GST.
- Arrange Your Project Finances: Make sure the estimate of your project finances and your investment portion is available, then also get a bank project loan which has been approved in principle. For a bank loan, the Draft Project Report will be crucial.
- Apply for the Scheme: During the application period, electronically submit your application with DPR through the official MoFPI “Sampada” portal.
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How NPCS Can Help You
The Detailed Project Report (DPR) is one of the most critical components of securing a loan and subsidy application. This is the instance where we at Niir Project Consultancy Services (NPCS) offer professionally bankable DPRs as a service.
Our comprehensive reports include an in-depth understanding of the different manufacturing processes. It includes methodologies, machinery identification, raw material procurement, and an elaborate market and financial analysis (Operation Greens 2.0).
Operation Greens 2.0: Frequently Asked Questions (FAQs)
Who is eligible to apply for the Operation Greens 2.0 scheme?
The eligible entities are individual entrepreneurs, Farmer Producer Organizations (FPOs), Partnership Firms, Co-operatives, Companies, Self Help Groups (SHGs), and Public Sector Undertakings.
Is there a minimum or maximum limit for the project cost?
This is especially valid regarding developing value chains. In the most recent updates, the minimum project cost starts as 1 crore rupees. With the maximum subsidy amounting to 50 crores rupees. It would be best to look at the guidelines on the MoFPI (Ministry of Food Processing Industries) website.
What documents are important when applying?
Typically, they require submission of your Detailed Project Report (DPR), proofs of land ownership or lease agreements, machinery cost quotations, bank loan approval letter, and company registration documents (PAN, GSTIN, etc.).
What are the advantages of working with a Farmer Producer Organization (FPO)?
An FPO partnership ensures a dependable source of unprocessed materials. Applications with strong ties to farmers and FPOs are accorded a higher priority during the subsidy assessment.
In what way you can complete the scheme application completed?
The application process is possible online. You will need to register on the SAMPADA portal provided by the Ministry of Food Processing Industries (MoFPI). The ministry issues an ‘Expression of Interest’ (EoI) from time to time. And you must submit your application within that specified period.
