Govt Will Set-Up Vegetable Hubs In Cities To Eliminate Middle-Men, Empower Farmers With Direct Supply Chain


Mohul Ghosh

Mohul Ghosh

Aug 16, 2024


The Indian government is set to launch a significant initiative aimed at enhancing vegetable production and supply chains near major cities. With an investment of ₹2,000 crore over the next five years, the plan involves developing 50 vegetable clusters in proximity to urban centers with populations exceeding 20 lakh. This ambitious scheme, currently being outlined by the Agriculture Ministry, is expected to receive Union Cabinet approval shortly.

Objective and Scope of the Scheme

The primary goal of this scheme is to boost vegetable production while stabilizing prices for both farmers and consumers. According to sources, the initiative will benefit over 2 lakh farmers residing near large cities. By creating a direct supply chain from farmers to consumers, the scheme seeks to minimize the role of middlemen, ensuring that farmers receive fair prices for their produce and consumers have access to fresh vegetables at reasonable rates.

Engagement of FPOs and Cooperatives

To manage price volatility and ensure a steady supply of essential vegetables like tomatoes, onions, and potatoes, the scheme will actively involve Farmer Producer Organizations (FPOs) and cooperative bodies. These organizations will play a crucial role in controlling the fluctuations in vegetable prices, which often lead to significant economic challenges for both producers and consumers. For instance, during periods of market glut, farmers struggle with low prices, while during shortages, consumers face sharp price hikes. This scheme aims to mitigate such issues by streamlining the supply chain.

Government’s Commitment to Agricultural Infrastructure

In her Budget speech on July 23, Union Finance Minister Nirmala Sitharaman emphasized the need to establish vegetable clusters near major consumption centers. She proposed that these clusters be developed in collaboration with FPOs, cooperatives, and startups, focusing on collection, storage, and marketing. This initiative aligns with the government’s broader goal of supporting agricultural infrastructure and improving the livelihoods of farmers.

Cluster Development and Consumer Access

The vegetable clusters will be strategically located within a 50 km radius of major cities like New Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad. These clusters will be developed in partnership with private sector entities, FPOs, and cooperative bodies. The scheme also includes provisions for setting up decentralized cold storage facilities and procuring vending trucks and vans to facilitate the distribution of fresh vegetables. Consumers will be able to purchase these vegetables from retail shops and vending trucks within their localities, making it more convenient to access fresh produce.

Conclusion

The government’s plan to develop vegetable clusters near major cities is a forward-thinking initiative that promises to benefit both farmers and consumers. By investing ₹2,000 crore in this scheme, the government aims to stabilize vegetable prices, reduce supply chain inefficiencies, and ensure that fresh produce is readily available at reasonable rates. As the scheme moves closer to implementation, it is poised to make a significant impact on India’s agricultural landscape, fostering growth and sustainability in the sector.

Image Source


Mohul Ghosh
Mohul Ghosh
  • 1649 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online