Teething problems of Indian floriculture

industry.
Aug 28, 1998 - © Sebastian Dominic

The Indian floriculture industry is worried about the present state of affairs. In addition to
the usual domestic infrastructure and marketing-related problems, the price realization
this year for Indian flowers touched a new low, hit by some unusual international
conditions.

Off take is much lower than usual and competition is fierce. The severe winter in the
consuming countries resulted in fewer people going out on the streets to buy flowers,
according to industry sources.

A general feeling of depression runs through the industry. Three years after the industry
started its operations, the units have still to contend with various infrastructure and
marketing problems. The air freight charges, already high, have been hiked again. Most
of the carriers do not maintain the cold chain, which is absolutely essential if the flowers
are to remain fresh until they reach their destination.

The industry has listed the kind of support required from the Government creating
adequate infrastructure, rescheduling the re-payment schedules to financial institutions,
increasing the soft loan assistance of the National Horticultural Board, providing
insurance cover for perishables, among others. National Bank for Agriculture and Rural
Development (NABARD), the Indian apex bank for agriculture development and
finance, in its "Strategic Action Plan" addressing the State and Union Governments,
highlights the problems faced by entrepreneurs in these non-traditional farming sectors. It
makes out a special case for setting up an international airport in Bangalore, besides the
proposed horticulture and floriculture board. It has identified over 20 problem areas to be
reviewed, some through suitable policy decisions.

The recommendations include duty and freight relief, timely flight connections,
infrastructure facilities, research support, and also the setting up of a body to review and
support the growing sector. At the state government level, it has suggested that the
projects be exempted from power cuts, tariff variations, purchase and sales tax.

Along with this, the Central Government has been urged to take up the heavy 15 per cent
import duty that the European Community imposes only on flowers from India, while
those from Israel, Colombia and African nations are exempt. The airlines should operate
sufficient morning flights to Mumbai, from where the commodities are flown out, to meet
the schedules for the perishable goods, it has recommended.

The floriculture industry's fear that airline companies, which carry flowers to Holland,
are operating in a cartel has been reinforced by the ongoing battle between Air France
and Bangalore-based companies. The silver lining in the entire affair is that all the
companies have joined together. The individual companies in the fledgling industry are
too small to be of consequence and ever since the formation of the SIFA, they have been
working together to transport cargo and even market flowers abroad.

The copyright of the article Teething problems of Indian floriculture industry. in

Business in India is owned by Sebastian Dominic. Permission to republish Teething
problems of Indian floriculture industry. in print or online must be granted by the
author in writing.
Four breeders of roses - De Ruitar, Tan Tau, Meilland and Kordes - hold the patents for
most of the existing rose varieties in India. Some growers have been propagating well
known varieties from these breeders without paying royalty on the mother plants. The
raids had been deliberately planned in the period around Valentine's Day - when prices
are almost ten times those of ordinary times - so that the losses would be felt more keenly
by the offenders.

The news of "fake" Grand Gala variety found in an export consignment from Bangalore
has shocked the floriculture industry here. Government organisations such as the FIEO
and APEDA have not accorded the matter much importance, however.

The general feeling is that it is only a small case and is unlikely to affect the industry as a
whole. "It is only a temporary phenomenon and those who are not violators have nothing
to worry about," said an industry source.

The copyright of the article Teething problems of Indian floriculture industry. in

Business in India is owned by Sebastian Dominic. Permission to republish Teething
problems of Indian floriculture industry. in print or online must be granted by the
author in writing.
Floriculture

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• Kraftsmann International
Kraftsmann International, established in 1993, is a medium sized firm
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• National Horticulture Board
 NHB was setup with a mandate to promote integrated development in
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with a focus on post harvest management to reduce losses.
• Prameya Flowers
They have successful 8 years experience in growing floriculture plants.
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• World Dried Flowers

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Indian floriculture industry cash in on exotic flowers

Press Trust of India
Posted online: Monday, August 08, 2005 at 1202 hours IST

New Delhi, August 8: Till a few years back, India was known for its roses abroad. But with
floriculture booming in many parts of the country, flowers of some exotic varieties are also making
it into the export list.

"Till a few years back, roses of different varieties were the main export items for us. But now even
tulips and lilies cultivated in India are being exported to countries like Japan, Saudi
Arabia and Pakistan. Today, you can buy these flowers in almost all places in the
country", says Ajay Barua, a flower dealer and the vice president of the flower mandi here.

Though these two varieties of flowers are being grown here, the seeds come mainly from
Holland.

"The seeds mainly come from Holland. But the flowers produced here are not inferior to those
produced there in any aspect. Usually these flowers come to the market in November and remain
till February", says Barua.

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While the flowers of exotic varieties have helped farmers increase their earning, they have also
added to the export pie of the dealers. Not to forget the Indian customers, for whom fresh exotic
flowers are now at a sniffing distance.

"Since these flowers are being grown here itself, flower dealers can save a lot of money. It also
reduces the gap between the time flowers are plucked and the time they reach the end
customers. As a result, flowers remain fresher. This way, the customers are getting fresh flowers
at reasonable prices", says Barua.

Delhi, which boasts of the biggest flower market in Asia, gets these exotic flowers mainly from the
southern states including Karnataka and Andhra

Pradesh. Besides, they are also being cultivated in Delhi and Manali.

The flower market in Delhi has grown manifold in the last couple of years, as floriculture has
come up in a big way in several states in the country including Kerala, Andhra Pradesh,
Maharashtra, Himachal Pradesh and West Bengal.

"Flowers of both desi and exotic varieties are being grown in many places as India has different
types of climates at different places, which suit different varieties of flowers. For example, we get
lilies from Manali; gerberas from Pune and Bangalore and aunthorium from Kerala", says Govind
Singh, a flower dealer for 10 years.

With the boom in floriculture, flower exports have also gone up significantly in the last few years.
Experts estimate that exports from Delhi alone generate nearly 100 crore each year.

"Flowers worth nearly 100 crore are exported from Delhi. Of this 80 per cent comes through
indirect export, while the rest comes through direct export. Indirect export is when dealers from
other countries personally visit our market and purchase flowers and direct export is when we
export flowers to our regular clients in other countries", says Barua.

Despite the springtime in floral business in the capital, its only flower market in the Connaught
Place area, which is the biggest in Asia, is still waiting to get a seal of legitimacy from the
authorities. Flower dealers complain that it has kept the business from growing to its potential as
they are allowed to operate during the odd hours 3 to 9 in the morning.

"Flower business in Delhi will grow at least twice its present volume if government provides us
with a shed and allows us to do business during the regular business hours. It will automatically
give a boost to flower business in the entire country", says Barua.

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• The import of seeds from other countries implies