New Delhi, Aug. 4 -- The Centre is preparing to roll out a Rs.2,000 crore scheme to develop horticulture clusters for fruits and vegetables within a 100-km radius of major consumption centres, betting that shorter supply chains will help curb food inflation while improving farmers' incomes, according to two people aware of the development.

The government has finalized the scheme guidelines and recently held a pre-bid meeting with interested stakeholders. The proposed Peri-Urban Vegetable Clusters, a five-year central sector scheme, will allow private players, farmer producer organizations (FPOs) and cooperatives to develop the clusters, the people said.

The initiative aims to improve the availability of perishable produce by shortening ...