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ECONOMIC ANALYSIS OF PRODUCTION AND MARKETING

OF SELECTED CUT FLOWERS GROWN UNDER PROTECTED


CULTIVATION IN SATARA DISTRICT

BY

Mr. Kadam Raviraj Bacharam


(Reg. No. 08/138)

A thesis submitted to the


MAHATMA PHULE KRISHI VIDYAPEETH,
RAHURI-413 722, DIST. AHMEDNAGAR,
MAHARASHTRA, INDIA

in partial fulfilment of the requirement for the degree

of
MASTER OF SCIENCE (AGRICULTURE)
in
AGRICULTURAL ECONOMICS

DEPARTMENT OF AGRICULTURAL ECONOMICS


POST GRADUATE INSTITUTE,

MAHATMA PHULE KRISHI VIDYAPEETH,


RAHURI-413 722, DIST. AHMEDNAGAR,
MAHARASHTRA, INDIA

2012

i
ECONOMIC ANALYSIS OF PRODUCTION AND MARKETING
OF SELECTED CUT FLOWERS GROWN UNDER PROTECTED
CULTIVATION IN SATARA DISTRICT

BY

Mr. Kadam Raviraj Bacharam


(Reg. No. 08/138)
A thesis submitted to the
MAHATMA PHULE KRISHI VIDYAPEETH,
RAHURI-413 722, DIST. AHMEDNAGAR,
MAHARASHTRA, INDIA

in partial fulfilment of the requirement for the degree


of
MASTER OF SCIENCE (AGRICULTURE)
in
AGRICULTURAL ECONOMICS
Approved by

Dr. D. S. Navadkar
(Chairman and Research Guide)

Dr. D. B. Yadav Dr. S. N. Tilekar


(Committee Member) (Committee Member)

Dr. B. V. Garad Dr. V. S. Wani


(Committee Member) (Committee Member)

DEPARTMENT OF AGRICULTURAL ECONOMICS


POST GRADUATE INSTITUTE,
MAHATMA PHULE KRISHI VIDYAPEETH,
RAHURI-413 722, DIST. AHMEDNAGAR,
MAHARASHTRA, INDIA
2012

ii
08

CANDIDATE’S DECLARATION

I hereby declare that this thesis or part

there of has not been submitted

by me or any other person

to any other University

or Institute for

Degree or

Diploma.

Place : MPKV, Rahuri. (R. B. Kadam)


Date : / /2012

iii
Dr. D. S. Navadkar
Agricultural Research Officer,
Strengthening Scheme,
Department of Agril. Economics,
Mahatma Phule Krishi Vidyapeeth,
Rahuri – 413 722, Dist. Ahmednagar.
Maharashtra, INDIA.

This is to certify that the thesis entitled, ECONOMIC


ANALYSIS OF PRODUCTION AND MARKETING OF SELECTED CUT
FLOWERS GROWN UNDER PROTECTED CULTIVATION IN SATARA
DISTRICT, submitted to the Faculty of Agriculture, Mahatma

Phule Krishi Vidyapeeth, Rahuri, Dist. Ahmednagar


(Maharashtra) in partial fulfilment of the requirements for the
degree of MASTER OF SCIENCE (AGRICULTURE) in
AGRICULTURAL ECONOMICS, embodies the results of a piece
of bonafide research work carriedout by Mr. Kadam Raviraj
Bacharam under my guidance and supervision and that no part
of this thesis has been submitted to any other university for
degree or diploma or publication.

Place: MPKV, Rahuri (D. S. Navadkar)


Date : / /2012 Research Guide

iv
Dr. R. S. Patil,
Associate Dean,
Post Graduate Institute,
Mahatma Phule Krishi Vidyapeeth,
Rahuri – 413 722, Dist. Ahmednagar
Maharashtra, INDIA.

This is to certify that the thesis entitled,


ECONOMIC ANALYSIS OF PRODUCTION AND MARKETING OF
SELECTED CUT FLOWERS GROWN UNDER PROTECTED

CULTIVATION IN SATARA DISTRICT, submitted to the


Faculty of Agriculture, Mahatma Phule Krishi
Vidyapeeth, Rahuri, Dist. Ahmednagar (Maharashtra)
in partial fulfilment of the requirements for the degree
of MASTER OF SCIENCE (AGRICULTURE) in
AGRICULTURAL ECONOMICS, embodies the results of
a piece of bonafide research work carriedout by
Mr. Kadam Raviraj Bacharam under the guidance and
supervision of Dr. D. S. Navadkar, Assistant Professor,
Department of Agricultural Economics, M.P.K.V.,
Rahuri and that no part of this thesis has been
submitted for any other degree or diploma or
publication.

Place: MPKV, Rahuri (R. S. Patil)


Date : / /2012 Associate Dean

v
ACKNOWLEDGEMENT

Words are inadequate to convey the depth of feelings


of gratitude to my research guide Dr. D. S. Navadkar,
Agricultural Research Officer, Strengthening Scheme,
Department of Agril. Economics, Mahatma Phule Krishi
Vidyapeeth, Rahuri for the constant scientific guidance,
encouragement and valuable suggestions during the period of
my research. He equipped me with the power to observe
critically and rationally all aspects of my study. I am fortunate
to get an opportunity to work under his guidance.
I extend my heartful thanks to members of my
Advisory Committee, Dr. D. B. Yadav, Head, Department of
Agricultural Economics, Dr. S.N.Tilekar, Director ( Research)
MCAER, Pune, Dr. B.V.Garad, Associate Professor,
Department of Horticulture, Dr. V.S.Wani, Assistant Professor,
Department of Statistics, MPKV, Rahuri for their constructive
criticism and help during the course of the investigation.
I specially express my sincere and deep feelings of
gratitude to Dr. R. S. Patil, Associate Dean (PGI), MPKV,
Rahuri and all staff of the Associate Dean (PGI) and of
Agricultural Economics Department for their guidance,
assistance and co-operation rendered throughout my studies
in numerous ways.
I express my heartiest thanks to Dr. B.V. Pagire,
Associate Professor of Agril. Economics, PGI, Shri. R.B.Hile

vi
Associate Professor of Agril. Economics, PGI, Dr. V. G.
Pokharkar-Field Officer (II), CPMCC Scheme, Shri. H. R.
Shinde, Shri. S. D. Patole, Shri. Arun Amale, Shri. Sachin
Suryawanshi, Shri.Shankar Jagtap, Shri. Chandrashekhar
Gulve, Shri. Harish Kamble from Department of Agricultural
Economics, MPKV, Rahuri for their helpful comments,
suggestions and co-operation in completion of the present
study.
I would be failing if I do not record a deep sense of
appreciation for the whole hearted co-operation and assistance
provided for completing this work by the farmers of Satara
tahsil. I am deeply obliged to all the authors and research
scholars from past and present whose literature has been
cited.
I owe my whole hearted thanks to my lovely friends
Rahul, Ajit, Vinayak, Mahesh, Dipak, Nilesh, Vijay, Manoj,
Amol, Sudhir, Amit,Ravi, Sagar, Swapnil, Rahul, Prakash,
Abhijit, Arun, Shekhar, Shahaji, Aniket, Nilesh for build up my
confidence, immense, help and encourgaments.
I am also thankful to my senior friends Shailesh,
Gorakh, Pramod, Pravin, Rupesh, Nilesh, Sangram, Abhi,
Sharad, Ranjit , Sagar and my junior Abhijit, Mahesh, Ganesh,
Nandu, Gaju, Suhas, Vishal, Akshay, Sagar, Pavan, Pintu,
Mahesh, Raja and others for their timely help and inspiration.
No words can express my irreplaceable feelings towards
my beloved parents Shri. Bacharam Kadam ( Nana ) and Sau.
Yashoda Kadam (Aai), Varsha ( Aakka), Ashwini ( Tai), Swati

vii
( Didi) and Jayashree and their in laws and all other family
members for being a consistent source of inspiration.
I am very much thankful to Mr. Prakash Shinde
from Shri Ganesh Computer, Rahuri for neat typing.
Finally, I am thankful to Mahatma Phule Krishi
Vidyapeeth, Rahuri for providing me this opportunity to
undergo higher studies leading to Master of Science
(Agriculture) degree in Agricultural Economics.

Place : M.P.K.V., Rahuri


Date : / /2012 (R. B. Kadam)

viii
CONTENTS

CANDIDATE’S DECLARATION iii


CERTIFICATES
i. Research guide iv
ii. Associate dean v
ACKNOWLEDGEMENT vi
LIST OF TABLES xii
LIST OF GRAPHS xiii
ABSTRACT xiv
1 INTRODUCTION 1
1.1 Orientation 1
1.2 Uses of flowers 2
1.3 Concept of cut flower 3
1.4 Present status of floriculture 6
1.4.1 Indian scenario 8
1.4.2 Export of Indian flower products 11
1.5 Floriculture Status of Maharashtra 12
1.6 The Problem 14
1.7 Objectives 14
1.8 Scope and utility of the study 15
2. REVIEW OF LITERATURE 16
2.1 Cost of production and profitability 16
2.2 Marketing and price spread 22
2.3 Constraints in production and
marketing of flowers 25

ix
3 METHODOLOGY 29
3.1 Basic approach of the study 29
3.2 Location of study 29
3.3 Sampling design 30
3.4 Selection of district 30
3.5 Selection of tahsil 30
3.6 Selection of villages 30
3.7 Selection of cultivators 32
3.8 Data requirement 32
3.9 Estimation of cost and return 33
3.9.1 Cost ‘A’ 33
3.9.2 Cost ‘B’ 33
3.9.3 Cost ‘C’ 34
3.10 Evaluation of input 34
3.11 Evaluation of output 36
3.12 Evaluation of marketing channels and their relative
costs 36
3.13 Functional analysis 38
4. GENERAL INFORMATION OF THE AREA 39
UNDER STUDY
4.1 Geographical location 39
4.2 Population 39
4.3 Climate and rainfall 39
4.4 Soils 40
4.5 Land utilization pattern 40
4.6 Cropping pattern 42
4.7 Livestock population 45

x
4.8 Socio-economic features of cultivators 46
5. RESULTS AND DISCUSSION 47
5.1 Orientation with the results 47
5.2 History and background information 47
5.3 General information about the polyhouse and the
produce of sample farmers 48
5.4 Cost of polyhouse erection 48
5.5 Resource use structure 50
5.6 Per polyhouse cost of cultivation of cut flowers 52
5.7 Cost of marketing of cut flowers 54
5.8 Output, costs and returns of selected cut flowers
55
5.9 Marketing of selected cut flowers 56
5.10 Price variations for cut flowers 58
5.11 Price spread in selected cut flowers 60
5.12 Prob1ems in production of cut flowers 61
5.13 Remedies on the problems 63
5.14 Functional analysis 64
6. SUMMARY AND CONCLUSIONS 67
6.1 Summary 67
6.2 Conclusions 72
6.3 Policy implication 73
7. LITERATURE CITED 73
8. SCHEDULE 77
9. VITA 86

xi
List of Tables
Table Title Page
No. No.
1.1 Area and production of flowers in India 9
1.2 Statewise area under flowers ( ha) 10
1.3 Export of floriculture products from India 11
1.4 Area and production of flowers in 13
Maharashtra
4.1 Land utilization pattern of Satara district 40
4.2 Land utilization pattern of Satara tahsil 41
4.3 Cropping pattern of Satara district 43
4.4 Cropping pattern of Satara tahsils 44
4.5 Livestock 45
4.6 Socio-economic features of cultivators 46
5.1 Information about the polyhouses 48
5.2 Average cost of erection of polyhouse 49
( Rs.Lakhs)
5.3 Average utilization of physical inputs 51
5.4 Average cost of cultivation of cut flowers per 53
poly house ( Rs.)
5.5 Average cost of marketing of cut flowers per 55
polyhouse ( Rs.)
5.6 Per polyhouse profitability of cut flower 56
production ( Rs )
5.7 Packaging and transportation of cut flowers 57
5.8 Market system 58
5.9 Price variations for cut flowers ( Rs/ No ) 59
5.10 Price spread in marketing of cutflower 61
5.11 Problems faced in production and marketing 62
of cut flowers
5.12 Results of functional analysis 65

xii
LIST OF GRAPHS

No Title Between
Pages
5.1 Average cost of erection of polyhouse for 49-50
rose
5.2 Average cost of erection of polyhouse for 49-50
gerbera
5.3 Average utilization of physical inputs 51-52
5.4 Average cost of cultivation of cut flowers 53-54
per polyhouse

xiii
ABSTRACT
ECONOMIC ANALYSIS OF PRODUCTION AND MARKETING
OF SELECTED CUT FLOWERS GROWN UNDER PROTECTED
CULTIVATION IN SATARA DISTRICT

BY

Mr. Kadam Raviraj Bacharam


(Reg. No. 08/138)
A candidate for the degree
of
MASTER OF SCIENCE (AGRICULTURE)
in
AGRICULTURAL ECONOMICS

Mahatma Phule Krishi Vidyapeeth, Rahuri – 413 722,


Dist. Ahmednagar, Maharashtra, INDIA.
2012

Research Guide : Dr. D. S. Navadkar


Department : Agricultural Economics

The present study was intended to depict the scenario of


cut flowers grown under protected cultivation in Satara
district of Western Maharashtra. The objectives of study were
to analyze the cost of production along with the constraints
faced by cultivators in production and marketing and to
suggest remedial measures thereon. It was also intended to
study marketing channels and their relative costs and various
factors influencing prices of cut flowers.
In the study area, i.e. Satara tahsil, rose and gerbera cut
flowers were cultivated on a large scale under protected
cultivation. The five cultivators from each flower type i.e rose
and gerbera growers were selected from six villages totaling to

xiv
Abst.contd. KADAM R.B.
10 cut flower growers from each village. Thus, 30 rose
cultivators and 30 gerbera cultivators were selected randomly.
In all, 60 cut flower growers were selected for the study. The
average number of family members of rose and gerbera
cultivators were 6.1 and 5.9 . The overall literacy percentage
was 84 in both rose and gerbera cultivators. Two types of
polyhouses were observed i.e. GH-1 naturally ventilated and
GH-2 partially controlled. The average cost of erection of rose
polyhouse was Rs. 6.98 lakhs whereas, the corresponding
figure for gerbera was Rs.6.50 lakhs. The share of frame work
in the total cost of erection of polyhouse for rose and gerbera
was 46.56 per cent and 45.85 per cent, respectively.
In the case of rose cut flower polyhouses, the cost of
cultivation, i.e. Cost '
C'was worked out to Rs. 6,16,101.84.
For the gerbera cut flower producing polyhouses, the total
cost of cultivation, i.e. Cost '
C' was workedout to Rs.
589599.23. In both the polyhouses, major items of cost of
cultivation were human labour, cost of planting material,
fertilizers and plant protection chemicals, rental value of land.
The average cost of marketing of produce was worked out to
Rs. 101894.80 and Rs.104252.20 for rose and gerbera cut
flowers, respectively. The number of flowers packed in one
bundle was 10 and each box contained 10-12 bundles.
Moreover, for the protection purpose of delicate and long sized
petals of gerbera flowers, a polythene cap was used.

xv
Abst.contd. KADAM R.B.
The average price received during monsoon season was on the
lower side, while winter prices were on higher side. The good
quality cut flowers have demand during festival occasion such
as Ganpati, Dassera, Diwali, Christmas, marriage season and
various days celebrated in the schools and colleges. The
average output of rose cut flowers was 217480 numbers.
The per polyhouse cost of production, gross and net
profit for rose cut flowers were estimated to Rs. 717997 Rs.
1196140 and Rs. 478143 with a benefit cost ratio of 1.67. The
per polyhouse cost of production, gross and net profit for
gerbera cut flower was estimated to Rs. 693851, Rs. 1243125
and Rs. 549274, respectively with a benefit cost ratio of 1.79.
In absolute terms, gerbera cut flower gave the highest net
returns. The price paid by rose and gerbera consumers in
domestic market was Rs.7.64 and Rs.7.38, respectively. The
producer’s share worked out to 71.99 and 69.11 per cent for
rose and gerbera, respectively. The maximum number of
farmers have opined that the high price fluctuation (96.67 per
cent) was the major constraint in the cut flower marketing
followed by inadequate credit for the establishment ( 81.67 per
cent).
The floriculture industry has got recent uplift and as
such it should be encouraged by evolving low cost polyhouse
structure and good quality varieties indigenously.

xvi
Abst.contd. KADAM R.B.
The market information be made available by the Government
to the farmers which will enable them to plan the production
and market the produce. The Government should make
arrangements for adequate capital and infrastructure facilities
like transport and cold storage to boost up this industry.
During the peak season, there is more demand and supply is
very less, which causes wide price fluctuations and the
advantage of which is mostly taken by the traders. Therefore,
a regular supply as per demand be assured. The cultivation of
rose and gerbera cut flowers in Satara district is a highly
profitable proposition. These crops should, therefore be
cultivated on a large scale .

Pages 1 to 86

xvii
1. INTRODUCTION

1.1 Orientation
The flowers have been offered in religious ceremonies
and social occasions but could not attain commercial and
social importance. Since a decade ago, floriculture has become
a potential money-spinner for the developing countries
including India. It is growing as a high-growth industry
oriented towards export of cut flowers.
Floriculture was included in the EXIM policy of India as
one of the areas eligible for setting up export oriented units
(EOU’s). In the Eighth Five Year Plan, the Ministry of
Commerce has identified floriculture as an extreme focus
segment. Within a short period of time for collaboration
purpose, India turned to Holland the world leader in
floriculture (60 per cent of world trade) and the biggest
supplier of flowers to Europe with several Dutch companies.
However, during the mid-nineties, the hi-tech floriculture
was unable to get fresh investment despite the country'
s
potential to emerge as a major exporter. Several reasons have
been cited by the experts including the high rate of sickness,
lack of proper homework in setting up EOU’s, lack of
infrastructure facilities and government policies are some of
the major factors that resulted in low investment in the sector.

xviii
1.2 Uses of flowers
Flowers, by uses, can be grouped into three
categories: a) traditional b) non-traditional and c) as raw
material for industrial purposes.
Flowers, by nature, attract every human being. It is
a gift of nature to humanity. Flowers symbolize the nature of
human spirit. Although different flowers blossom in different
climates by nature, but by using the nature'
s bio-diversity, the
hi-tech agriculture, enabled the floriculture industry to
blossom in all the seasons. The period between November to
May is the best season for export of floriculture products from
India.
Flowers are used in religious ceremonies, house
decorations, in temples and for festivities, etc. Flowers for
traditional uses are used for a day. The most widely cultivated
traditional flowers are jasmine, chrysanthemum, crossandra,
rose and marigold.
In the non-traditional category, flowers are
normally offered for exchange on occasions of joy or sorrow in
the form of bouquets or wreaths to express one'
s feelings. Cut
flowers and fully developed buds are generally used for such
purposes. Commercial floriculture projects are being taken up
by private companies to produce cut flowers for export
purposes. Flowers are also used as raw material in industries
to extract the oil fragrance due to their pharmaceutical
qualities. For preparation of industrial products like perfumes,
toiletries, cosmetics, pharmaceuticals, confectioneries,

xix
gulkand and syrup, varieties of flowers are used as raw
material. That is reason why the term "floriculture industry" is
being generally used. Floriculture industry, consisting florist'
s
trade, nursery plants, potted plants, seeds, bulb production,
micro propagation and extraction of essential oils from
flowers, is worth about US $ 200 million in India.
India possesses a variety of adaphic and agro-
climatic conditions blessed with plenty of sunshine, land,
cheap and skilled manpower etc. for the favorable
development of floriculture industry. Inspite of this, the Indian
share in the global floriculture industry is negligible (7.3 per
cent )
1.3 Concept of cut flower
The name '
cut flower'has now become popular in
almost all metropolitan cities and other urban areas. In the
seventies, only roses and to some extent, tuberoses were used
as cut flowers. In India, the use of loose flowers of all
categories was very common till recently mainly making
garlands for worship and bouquets for functions. However, the
use of these loose flowers is maximum during festive seasons
of Dashera, Diwali and Ganesh during the year which are
concentrated at specific points of time. All these loose flowers
are cultivated in the open field only.
With the passage of time, the use of cut flowers i.e.
roses and tuberoses started increasing. However, flowers, like
gerbera, carnation, anthurium, orchids, daisy, aster and
chrysanthemum were introduced as cut flowers in the recent

xx
years. The production of cut flowers is always region and
climate specific, therefore, it was difficult to make them
available throughout the year under open cultivation. The
production of cut flowers was tried in all seasons, but it failed
to meet the quality standards. Meanwhile, the production of
cut flowers under protected cultivation was tried by the
enthusiastic entrepreneurs, progressive farmers and the
scientists in other countries. The concept of protected
cultivation, though was not new one but it’s extended use in
floriculture was a recent one. The greenhouses in the form of
glasshouses were built and used only for undertaking
research which were costlier one. The cool climate in
European countries, forced the scientists to use the green
houses in the form of polyhouses for undertaking the
research. The use of polyhouse technology was then adopted
on a large scale in Israel. The country like Israel experiences
high temperatures during most part of the year. The use of
polyhouses with required modifications were adopted on a
large scale for the production of vegetables, especially tomato
and capsicum in Israel. In recent years, Israel has diverted
towards cut flower production due to nearness of European
export flower markets. In India, Horticulture Development
Programme gained momentum from 1991-92 onwards.
The developments at national level were reflected in
the horticulture sector in Maharashtra. Maharashtra state is
well known for production of horticultural crops in the
country. Fruits like grapes, Alphanso mango, pomegranate,

xxi
oranges, ber and other fruits, vegetables like onion and cut
flowers, namely gerbera, carnation etc. are being produced in
abundance. The climate for cultivation of many of the above-
mentioned crops and a few flower crops is ideal in
Maharashtra. The Government of Maharashtra took several
steps to boost up this sector. The launching of Horticulture
Development Programmes with a provision of Rs. 100 crores
fund was the first step in that direction (1992). Under this
programme, subsidies were given to the producers for
undertaking and further preservation of plantations.
Moreover, progressive farmers were taken to see the
horticulture developments in other parts of the country and
abroad.
This has resulted in an increased area under
horticulture crops and also under flower crops. Production of
flowers as cut flowers in polyhouses, i.e. under protected
cultivation, took sudden shape meanwhile. Initially, in
Maharashtra, the cut flower production in large polyhouses
was taken up around major cities like Pune and Nasik. All
those units were export-oriented (E.O.U.), which were owned
and managed mostly by entrepreneurs and industrialists. The
sizes of these polyhouses were in acres and hectares. Almost
the entire production of cut flowers was exported to
Netherlands, Japan etc. However. the expenditure involved in
the construction of polyhouses of Rs. 15-20 lakhs, for one
acre area was out of reach of ordinary farmer. Therefore, the
small sized polyhouses with an average expenditure of Rs. 3-5

xxii
lakhs were required to be designed. Though many farmers
desired to venture for the production of cultivation of cut
flowers in polyhouses, the high cost prevented them from
doing so. The technology of cut flower production was made
known to all enthusiastic farmers. Meanwhile, three types of
pollyhouses-naturally ventilated, partially ventilated and fan
type were evolved. Similarly, polyhouses with low cost and of
small size ranging from 0.03-0.05 hectares were designed. The
farmers, in general, were advised to adopt these structures.
Gradually, this has resulted in the erection of small sized
polyhouses by the farmers for production of cut flower, mainly
in Nasik, Pune and Sangli districts of Western Maharashtra.
The Government of Maharashtra and the Central
Government started granting subsidies to polyhouses owners
of various types, i.e. GH-l, GH-2, and GH-3. The limits of
subsidies were Rs. 32,250 to one lakh depending upon the
size and structure of polyhouses till 1999-2000. The amount
of these subsidies later on were reduced to Rs. 40,000 with
the avent of polyhouse technology for cut flower production.
The problems with regard to the production and marketing of
different types of cut flowers were arised which were raised on
various platforms. The opinions regarding its profitability
were putforth. This created puzzle in the minds of new
beginners or entrepreneurs.
1.4 Present status of floriculture
There has been a tremendous surge in the demand and
consumption of floriculture products in the last two decades.

xxiii
Cultivation and consumption of flowers and potted plants
have been an integral part of the tradition and cultural
heritage of most of the countries in the world, but its
expansion as a trade got a boost with increasing expandable
income. The expansion in area under floriculture in non-
traditional regions has been one of a noticeable feature.
Netherlands, Italy, Germany, Japan, has a strong
tradition of growing and consuming flowers. Nowadays, new
production centers are also developing in Latin America,
Africa and Asia to meet the increasing demand of importing
countries and to expand their domestic market.
The total floriculture world market, which was
worth US $ 12.5 billion in 1980 grew up to US $ 25 billion in
1990 and further to US $ 35 billion in the year 2001 with
concentration in Western Europe, North America and Japan.
Production and consumption of floriculture
products are increasing all over the world. Western Europe
accounts for half of the world'
s cut flower production and
consumption of the product, which is heterogeneously
distributed in different countries. Flower Council of Holland
has projected a European consumption of cut flowers to the
tune of US $ 16.6 billion in 2008. The new markets emerging
in Europe are Poland, Hungary, Slovakia and Ireland. The
mostly preferred cut flowers in the international market are
roses, tulip, chrysanthemum, gerbera, carnation, freesia,
lillium, alstromeria, irris, anthurium, orchids and gypsophilla.

xxiv
1.4.1 Indian scenario
Cultivating flowers and gardening have been
practiced in India for many centuries. India is the home for a
large number of ornamentals. With the vast wealth of
germplasm, varied agro-ecological conditions and techno-
advancement, floriculture is making rapid strides as an
enterprise. Though all the states in India have a tradition of
growing flowers, the commercial growing of flowers is
presently confined to Karnataka, Tamil Nadu, Andhra
Pradesh, West Bengal, Maharashtra, Rajasthan, Uttar
Pradesh, Delhi and Haryana. The major flowers grown in India
are marigold, aster, roses, tuberose, gladiolus, jasmine and
crossandra in open field, while gerbera, carnation, roses,
anthurium, orchids etc. are grown under greenhouse
conditions.
The details regarding the changes in the area and
production of loose and cut flowers during the period 1995-96
to 2009-10 in India are presented in Table 1.1.and 1.2
It is noted that the area under loose and cut flowers
has continuously increased from the year 2003-04 to 2009-10
over a period of time. In the year 2009-10 area under loose
and cut flowers increased by 123.04 per cent over the base
year. The production of loose and cut flowers has increased
over a period of time.

xxv
Table 1.1 Area and production of flowers in India
( Area in 000 ha)
( Prod.in 000 MT)
( Flowers in million nos. )
Production
Sr.No. Year Area
Loose flowers Cut flowers
1 1995-96 82.00 334.00 537.00
(100.00) (100.00) (100.00)
2 1996-97 71.00 366.00 615.00
(-13.41) (9.58) (14.53)
3 1997-98 74.00 366.00 622.00
(-9.76) (9.58) (15.83)
4 1998-99 74.00 419.00 643.00
(-9.76) (25.45) (19.74)
5 1999-00 89.00 509.00 681.00
(8.54) (52.40) (26.82)
6 2000-01 98.00 556.00 804.00
(19.51) (66.47) (49.72)
7 2001-02 106.00 535.00 2565.00
(29.27) (60.18) (377.65)
8 2002-03 70.00 735.00 2060.00
(-14.63) (120.06) (283.61)
9 2003-04 101.00 580.00 1793.00
(23.17) (73.65) (233.89)
10 2004-05 118.00 659.00 2071.00
(43.90) (97.31) (285.66)
11 2005-06 126.00 694.00 2762.00
(53.66) (107.78) (414.34)
12 2006-07 148.40 888.00 2980.00
( 80.97) ( 165.86) ( 454.93)
13 2007-08 166.30 886.40 3115.00
(102.80) (165.89) (480.07)
14 2008-09 166.5 987.40 3960
(102.78) (195.62) (637.43)
15 2009-10 182.90 1020.60 3966
(123.04) (205.56) (637.45)
( Figures in parentheses indicate percentage to the base year 1995-96)
Source: National Horticulture Board 2011

xxvi
Table 1.2 Statewise area under flowers ( ha)
Sr.No State Area
1 Karnataka 18075
(16.98)
2 Tamilnadu 19400
(18.22)
3 Maharashtra 7071
(6.64)
4 West Bengal 13553
(12.73)
5 Andhra pradesh 10152
(9.53)
6 Rajasthan 1863
(1.75)
7 Uttar Pradesh 6325
(5.94)
8 Harayana 3250
(3.05)
9 Madhya pradesh 1437
(1.35)
10 Punjab 375
(0.35)
11 Jammu and Kashmir 117
(0.11)
12 Delhi 4056
(3.81)
13 Himachal pradesh 18895
(17.75)
14 Manipur 121
(0.11)
15 Others 1787
(1.68)
Total 106477
(100)
( Figures in parentheses indicate percentage to total)
Source: National Horticulture Board,2008
The maximum production of loose flowers was
increased by 205.56 per cent over the base year in 2009-10
whereas in the case of cut flowers it was increased by 637.45
per cent over the base year in 2009-10.It is revealed that the
Tamil nadu state has 18.22 per cent area under the flowers

xxvii
whereas Maharashtra contributes 6.64 per cent area under
flowers among the various states in the country.
1.4.2 Export of Indian floriculture products
The export of floriculture products from India
during 1995-96 to 2006-07 is shown in the Table 1.3.
Table 1.3 Export of floriculture products from India
( Rs.)
Sr.No Year Value
1 1995-96 60.14
(2.70)
2 1996-97 63.39
(2.84)
3 1997-98 81.20
(3.64)
4 1998-99 96.60
(4.33)
5 1999-00 105.15
(4.71)
6 2000-01 123.12
(5.52)
7 2001-02 115.39
(5.17)
8 2002-03 165.86
(7.44)
9 2003-04 249.55
(11.19)
10 2004-05 221.11
(9.91)
11 2005-06 299.41
(13.42)
12 2006-07 649.83
(29.13)
2230.75
(100)
( Figures in parentheses indicate percentage to total) (
Source: APEDA; 2008

The export of floricultural products has shown


tremendous growth during the last 12 years. The export of
flowers from India in 2006-07 fetched a foreign exchange of
Rs. 649.83 crores. The export units are mainly concentrated

xxviii
around Pune, Bangalore, Hyderabad, Delhi, Gurgaon,
Coimbatore, Faridabad, Chandigarh, Lucknow, Chennai,
Kolkatta, Nasik, Vadodara, Jalpaiguri, and Amritsar. The
major markets for Indian cut flowers have been Europe and
Japan.
1.5 Floriculture Status of Maharashtra
Maharashtra is a leading State in agriculture and
now emerging as an important horticultural state in the
country. The varied type of soil, diverse field agro-climatic
conditions, adequate technical manpower, well developed
communication facilities, increasing trend in drip irrigation,
greenhouses, use of cool chain facilities and vibrant farmer
organizations offer wide opportunities for growing different
horticultural crops.
Floriculture in the State is of recent origin. Till recent
past, floriculture in the state was confined to the traditional
flowers only. However, the private sector has entered this field
on a very large scale with greenhouse technologies, in which
the cut flowers like roses, carnations, gerberas, anthurium,
orchids etc. are grown commercially. Marginal farmers of
Maharashtra are also growing flowers 1ike gerbera, carnation,
roses, anthurium, orchids etc.under greenhouse conditions
and are supplying to the domestic markets.
Maharashtra ranks foremost in the horticulture
map of the country. The horticulture scenario in the state has
metamorphosed from traditional open cultivation to
commercial and hi-tech cultivation of flowers.

xxix
The State with varying soil types and agro-climatic
conditions offer tremendous scope for commercial floriculture.
The districts like Pune, Nasik, Sangli, Kolhapur, Thane,
Nagpur and Satara are well known for flower cultivation. Pune
district is supposed to be district of "Corporate Hi-tech
Floriculture", while Kolhapur and Sangli are the districts in
which "marginal farmers' do the hi-tech floriculture". Nasik
and Ahmednagar districts are known for "open flower
cultivation".
The principle flowers grown in Maharashtra are
roses, carnation, chrysanthemum, marigold, aster, jasmine,
etc. In polyhouses, important flowers grown are roses,
carnation and gerbera. The climate of deccan plateau is
suitable for growing roses, gladioli, carnations, gerbera,
chrysanthemum, mogra, tuberoses, etc., while coastal climate
is suitable for orchids and anthuriums.
Table 1.4 Area and production of flowers in Maharashtra
( Area in 000 ha)
( Prod.in 000 MT)
( Flowers in lakh nos )
Sr.No. Year Area Production
Loose Cut
1 2007-08 16.70 69.5 5728
2 2008-09 16.40 89.40 5728
3 2009-10 17.51 91.10 7914
Source: National Horticulture Board 2011
The protected cultivation of flowers and other high
value plants on a commercial scale in big polyhouses came
into existence in the beginning of this decade. However, such
cultivation was limited to the corporate houses and the

xxx
erection of polyhouses involved very high financial outlay and
technological support. Over the years, the technology was
indigenized to adopt by the Indians. This resulted in the
emergence of low cost polyhouses, the advent of which even
the small and marginal farmers are now able to exploit the
benefits of protected cultivation.
1.6 The Problem
The level of technology adopted by different hi-tech
units varied from firm to firm. Therefore, interpretation of data
by averaging various polyhouses may have its own limitations.
However, this error was minimized by eliminating samples,
which deviated much away from the mean. It is equally
important to analyse the market potential, foreign exchange
earning, change in the demand, dependence of export market,
risk in marketing etc. to address the sustainability (of
floriculture) issue entirely. However, the present study was
confined only to the production aspects.
Therefore, the present study, viz; economic analysis
of production and marketing of selected cut flowers grown
under protected cultivation in Satara district has been
undertaken to examine all the aspects.
1.7 Objectives
i. To study economics of production of selected cut flowers
under protected cultivation.
ii. To study marketing channels and their relative costs.
iii. To ascertain constraints in production and marketing of
cut flowers and suggest remedial measures thereon

xxxi
iv. To identify various factors influencing price of cut flowers
1.8 Scope and utility of the study
Floriculture comprises both traditional and modern
flower crops. The traditional flowers are grown in open-air
conditions. The modern flower crops are grown in controlled
conditions (Green Houses). Indian floriculture has been
shifting from traditional flower to cut flowers for export
purpose. The liberalized economy has given an impetus to the
Indian entrepreneurs for establishing exports oriented
floriculture units under controlled climate conditions. Hence,
the proposed study has been carried out for mainly focusing
on the non traditional flower growing in the Satara district of
Maharashtra for knowing the cost of production and
profitability of selected cut flowers, management aspects
relating to production and marketing of the cut flowers,
identifying the various factors influencing prices of cut
flowers, and identify the problems in production and
marketing of cut flowers.

xxxii
2. REVIEW OF LITERATURE

Review of literature on relevant aspects under study


forms an integral part of any systematic research work. The
knowledge of research work carried out by the other
researchers in the past relating to the problem under
consideration is useful and provides guidance to the new
researchers in approaching the research problems and
conducting research in the right direction. It helps in proper
understanding of the concepts methodological and analytical
issues relating to the problems under study.
The present chapter deals with the presentation of
reviews of the similar part studies for knowing the
methodology adopted and interferences arried by the
researchers for the state of convenience in presentation and
keeping in view the objectives of present study in mind, the
available reviews have been classified according to the
following heads.
2.1 Cost of production and profitability of flowers
2.2 Marketing and price spread
2.3 Constraints in production and marketing of flowers.
2.1 Cost of production and profitability of flowers
Acharya and Patil (1970) studied the '
Economics of
chrysanthemum cultivation in Ahmednagar and Parner tahsils
of Ahmednagar district. They concluded that of the total costs
of Rs. 4,073/- per acre, the major item of cost was the
marketing cost, which was Rs. 2,038.70/- (50 per cent). The

xxxiii
quantity of manure and fertilizers added were 23 cart loads of
farm yard manure, 28 kg N, 2.7 kg P205 and 2 kg K20 per acre.
The cost of cultivation, gross returns, net profits and
production were Rs. 4,073/-, Rs. 8,699/-, Rs. 4,626/- and
3,876 kg per with a production of acre respectively. They
emphasized the need for studying the impact of
chrysanthemum cultivation of farmers'economy.
Phadnis, et al (1970) estimated the expenditure and
receipts obtained from commercial cultivation of
chrysanthemum at the College of Agriculture, Pune to Rs.
1185/- and Rs. 3,000/- per acre with a net profit of Rs.
1815/-.
Chatterjee and Bose (1973) studied cost of
cultivation of roses for export and estimated the net profit. The
export of roses was hindered because the quality for export
was not maintained. Location is an important factor
influencing growth and flowering of plants and for easy and
quick transport of roses for export. The study revealed that
the gross income and net profit were Rs. 57,426/- and Rs.
10,442/- per acre, respectively.
Kokate and Jadhav (1974) in their study entitled
'
Reap better dividends from Chrysanthemum'at the College of
Agriculture, Kolhapur observed the yield of 3,750 kgs of
chrysanthmum flowers can be harvested from both main and
ratoon crop per acre. The estimated gross income was Rs.
10,000/- against the cost of cultivation of Rs. 3,500/- per
hectare. The major items of expenditure in the cost of

xxxiv
cultivation were the high cost of fertilizers and the picking
charges of flowers .
The Department of Agricultural Economics,
Mahatma Phule Krishi Vidyapeeth, Rahuri (1975) conducted a
study on the '
Economics of production and marketing of roses'
on the basis of the information collected from the sample of 10
rose cut flower growers from Pune and Nasik districts,
respectively which revealed that the per hectare total cost of
cultivation of roses came to Rs. 24,286/-. The most expensive
item of cost was the hired labour charges, which was Rs.
11,917/- per hectare.The main produce was Rs. 20,478/-
dozens of flowers valued at Rs. 52,016/- and the profit
amounted to Rs.27,830 /- per hectare.
Mahandule (1983) studied the “Economic analysis
of production and marketing of Chrysanthemum in
Ahmednagar district”, from a sample of 90 growers. Of the
various resources used, cost of manure was the highest item
of cost, contributing to about 15 per cent of total cost of
cultivation. The per hectare cost of cultivation workedout to
Rs. 10,948/-, Rs. 11,553/- and Rs. 11,494/- on small,
medium and large sized groups of holdings, respectively. At
the overall level, the per hectare net returns was to the tune of
Rs. 6421/-.
Subrahmanyam (1986) in his study entitled
'
Economics of production and marketing of Chrysanthemum
in Karnataka workedout the cost of production for
chrysanthemum, amounting to Rs. 21,500/- per hectare. The

xxxv
hired labour charges were the major item of cost in the total
cost of cultivation and therefore he concluded that cultivation
of chrysanthemum is a labour and capital intensive
enterprise.
Subrahmanyam (1989) conducted in the study
entitled, ‘Economics of production and marketing of roses in
Karnataka’. The data were collected from the sample of 50
cultivators from 3 talukas around the Banglore city. The per
hectare requirement of internal investment was Rs. 57,500/-.
The major item of cost during the first year of establishment of
the garden was on planting material. The per hectare
maintenance cost from the second year onwards ranged
between Rs. 22,000/- to Rs. 27,000/-. The cultivation of
roses was observed to be labour intensive venture but yielded
the returns ranging from Rs. 36,000/- to Rs. 75,000/- per
hectare over maintenance cost.
Shedge and Borude (1992) conducted' Economic
analysis of flower production in Thane district of Maharashtra'
in which they dealt with Kagda, Mogra and Spiderlily flowers.
They concluded that the cultivation of flowers was quite
profitable, but required intensive cultivation and heavy initial
investment. With the production of flower, there was
continuous income and employment generation to the farmer.
Tilekar (1999) workedout '
Economics of production
of cut flowers under polyhouse conditions'
. The cut flowers,
selected for the study were Gerbera, Carnation and Rose. He
concluded that the enterprise was moderately profitable. For

xxxvi
0.05 ha. sized polyhouse, the per polyhouse average cost of
cultivation of gerbera, carnation and rose was Rs. 2.06
131akh, 2.21 lakh, and Rs. 1.96 lakh, respectively and for 0.1
ha. sized polyhouse, the corresponding values were Rs. 3.91
lakh, Rs. 4.12 lakh, and Rs. 3.73 lakh, respectively. Per
polyhouse cost of marketing was highest for Rose cut flower,
followed by Carnation and Gerbera. The B:C ratio was
observed to be more than 1.5 in all sizes of polyhouse and for
the three types of cut flowers.
Tilekar (2000) workedout '
Price analysis of cut
flowers produced around urban area of Western Maharashtra'
.
He estimated the cost of cultivation of roses, gladioli, aster,
daisy and tuberose to be Rs. 4.89 lakhs, Rs. 5.04 lakhs, Rs.
1.40 lakhs, Rs. 2.12 lakhs and Rs. 4,38 lakhs, respectively,
for open cultivation. The cost of construction of polyhouse of
size 0.1 ha varied from Rs. 2.24 lakhs to Rs. 4.29 lakhs in the
selected districts. The average cost of cultivation of gerbera in
0.05, 0.1 and 0.4 ha. sized polyhouse were Rs. 2.13 lakhs, Rs.
4.03 lakhs, and Rs. 13.78 lakhs, respectively. The
corresponding costs in carnation were Rs. 2.6 lakhs, Rs. 5.03
lakhs and Rs. 14.29 lakhs, while for roses, these were Rs.
3.99 lakhs, Rs. 14.80 lakhs and Rs. 14.80 lakhs, respectively.
The major inputs required in polyhouse cultivation were
planting material and labour. The B:C ratio for carnation was
1.77 and for gerbera, it was 1.69. The B:C ratio for roses was
comparatively low. The season, grades of flowers, and the size

xxxvii
of polyhouse were identified to influence the price of cut
flowers.
Bhegde (2002) studied the '
Economic analysis of
production and marketing of selected cut flowers grown under
small sized polyhouses in Pune district'
. He calculated the
cost of production and the profitability of cut flower
production. In the case of gerbera the cost of production of
0.05 and 0.1 ha polyhouses was Rs. 2,60,450 and Rs.
4,78,497, that of carnation was Rs. 2,80,820 and Rs. 5,33,460
and that of rose it was Rs. 2,40,666 and Rs. 4,49,216,
respectively. The B:C ratio of these crops was l.45 and 1.51 for
gerbera in 0.05 and 0.1 ha polyhouse, 1.59 and 1.60 for
carnation in 0.05 and 0.1 ha polyhouses and 1.65 and 1.71
for rose in 0.05 and 0.1 ha polyhouses.
The Department of Agricultural Economics from
the College of Agriculture, Pune (2005) in their project
'
Economics of production and marketing of produce of hi-tech
floriculture project of Agricultural College, Pune - A Case
Study'workedout the average construction cost of polyhouse
to be Rs. 125.41 lakh per hectare. The per unit cost of
production of flowers was Rs. 1.35, Rs. 1.16 and Rs. 0.92 per
flower for the roses, carnation and gerbera, respectively. The
per hectare cost of cultivation was Rs.20.13 lakhs, Rs.20.19
lakhs and Rs. 20.14 lakhs for corresponding flowers,
respectively. The B:C ratio workedout to be 1.07, 1.93 and
2.23.

xxxviii
Navadkar et al. (2006) studied the '
Economics of
production and marketing of selected flowers and vegetables
grown under protected cultivation around Pune city'
. They
noted that the average cost of construction of polyhouses
exceeded Rs. 4 lakhs and Rs. 7 lakhs for 0.05 ha and 0.1 ha
area, respectively. The average cost of cultivation was
observed to be more for carnation, which was Rs. 2.7 lakhs
and Rs. 5.22 lakhs in 0.05 and 0.1 ha polyhouses
respectively. This was followed by Gerbera with an average
cost of cultivation of Rs. 2.5 lakhs and Rs. 4.5 lakhs for 0.O5
and 0.01 ha polyhouses, respectively. The average cost of
cultivation of roses was Rs. 2.2 lakhs and Rs. 3.4 lakhs for the
same sizes of polyhouses. The total cost of marketing of
carnation was the highest which was Rs. 62,701 and Rs.
1,03,550 for the produce of 0.05 and 0.1 ha, polyhouses. The
cost of marketing of gerbera was Rs. 66,000 and Rs. 1,09,000
for the two sizes of polyhouses and that of roses was Rs.
60,501 and Rs. 98,101, respectively. The B:C ratios were 1.75
for roses, 1.63 for carnation and 1.51 for gerbera.
The cited references give us a general idea about
the cost of cultivation, productivity and returns of the selected
floriculture enterprises.
2.2 Marketing and price spread

Agarwal (1981) identified the marketing problems of


chrysanthemum. Investigations made in this regard revealed that
due to fixed season and perishable nature of chrysanthemum
flowers, there were wide soared fluctuations in the price of

xxxix
flowers. He also reported that agricultural marketing is the crux
of the problem of agriculture improvement in India. He reported
that weaknesses such as large number of middlemen,
unregulated markets, mal-practices in mandies and lack of
infrastructure facilities make the marketing system inefficient in
performing its function.
Pandey (1991) mentioned in his article that the
technology for cultivation of export roses was not available to
farmers and thus, the roses grown in the open area were not
acceptable in the European market because of poor quality.
Besides these, the performance of farmers to cater the
domestic demand for cut flowers was dismal due to absence of
standardized post-harvest technologies, poor marketing
assistance and lack of arrangements for collection of cut
flowers from small growers.
Tuvenhout and Rozen (1995) made a SWOT
analysis (analysis of strength, weakness, opportunities and
threat) for hitech rose production in India. In that analysis, he
mentioned that exploitation of vast local market as a good
opportunity and on the other hand, over-production in the
world market and too optimistic project reports are the major
threats.
Prasad (1997) brought out that the floriculture
industry was in its nascent stage and yet to establish our
creditability in the international market. Although the concept
of floriculture had emerged in 1991, the units had started
their operation from 1994-95 onwards. But due to recession

xl
in mid nineties, the farmers were no longer interested to
invest money in floriculture units. This was the constraint of
the big project operators. The farmers were not able to make
use of consultants'visits to clear their doubts and to secure
information on different aspects of floriculture.
Singh (1997) stressed on the areas in floriculture
that needs attention and help from the Government. They
were providing market information network, streamlining
export regulation, local sales, insurance cover to delayed
flights, amending laws to encourage large projects like green
house parks, import of certain essential chemicals and
pesticides, preferential treatment to flowers in cargo space and
streamlining on import of planting material procedure and
phytosanitary certificate.
Gajanana and Subramanyam (1998) categorized
problems of anthurium cultivators as production problems and
marketing problems. In the production side, high cost and non-
availability of quality planting materials, pest and diseases and
in the marketing side, unorganized markets, non-availability and
high cost of transportation, packing of flowers and exploitation
by the traders were the major problems.
Raghava and Dadlani (1999) pointed out that it was
only during the Eighth Plan that the Government recognized
the need for systematic development of floriculture sector and
introduced a scheme on commercial floriculture. But the poor
information base for this field led to lower levels of benefit
accruing from this development effort. One of the serious

xli
weaknesses of this and similar development efforts by the
Government had been deciding on the balance between
domestic and international floriculture. This has affected the
sustainable growth of the sector. The major problem affecting
the growth of the domestic sector floriculture was the non-
availability of an organized marketing set up.

2.3 Constraints in production and marketing of flowers.


Gowda (1988) in his study on export potential of cut
flowers in India highlighted various constraints that were
obstructing the growth of Indian floriculture industry such as
non-availability of planting materials, lack of technical know-
how, lack of infrastructure facilities, disorganized local market
system, high freight charges and non-strict regulation by
Government.
Maity (1994) in his study entitled, '
Flowers as a
commercial crop in East and North-East' concluded that
though the prospect of floriculture was vast in the eastern and
north-eastern parts of India, but the constraints were
formidable. The major constraints were technological, followed
by improper packaging, germplasm, research and transport.
Ghadia (1997) pointed out that floriculture as an
industry always has to suffer from the dangers of
unpredictable nature. It lacks from the technically qualified
personnel, adequate infrastructure support like electricity,
roads, telecommunication, cooling system at airports, etc.
Nair (1997) pointed out the problems of general
farmers. He said that motivating people to work in high

xlii
technology farming activity was the greatest challenge.
Floriculture had been both an agricultural and industrial
activity. So a worker in floriculture expected to get high
remuneration.
Kumar (1997) a floriculture consultant, had
identified the constraints of the general farmers. According to
him, although the consultants guide the farmers, but, they
did not give much background knowledge.
Venkitaratnam (1998) noted that lack of
appropriate greenhouse technology and computerization, lack
of knowledge of liquid fertilizers, want of cold chain, lack of
cargo space and adequate air transport facilities and poor
infrastructure in airports and procedural formalities had
caused a serious setback to floriculture industry of the
country.
Joshi (1999) studied the '
Economics of credit
requirement in cultivation of selected flowers around Pune
city'
, from a sample of flowers growers 120 for each of the
selected flowers in 7 selected villages in the Haveli taluka of
Pune district for the flowers roses, chrysanthemum, tuberose
and marigold. The study suggested that the DCCB should
raise the scale of finance for floriculture based on the
estimated credit requirements. There is also a need to
strengthen the financial and marketing infrastructure in
floriculture to make the trade more competitive.
Bhegde (2002) identified the major constraints in
protected floriculture in his study '
Economic analysis of

xliii
production and marketing of selected cut flowers grown under
small sized polyhouses in Pune district'
. He pointed out that
cost of planting material, unaffordable cost of plant protection
chemicals, unawareness about the grades and bad quality and
costly packaging material were the major constraints in cut
flower cultivation. Lack of storage facilities and transport
facilities were the major marketing constraints faced by most
of the growers.
Thippaiah (2005) in his work on floriculture in
Karnataka: performance prospects and problems reported the
problems relating to modern floriculture and traditional sector.
He classified constraints under production and marketing of
flowers. Under modern floriculture sector, he found major
production constraint was losses due to high overheads and high
establishment costs compared to small units. Many of the units
heavily depended on the imported technology and materials for
installation of units. This had pushed the unit cost. Under
marketing constraints information regarding the market trends
in terms of opportunities for new varieties, value-added
packaging and developments, taking place in other parts of the
world was also not available to the growers. The other constraint
was high freight charges, which were affecting the viability of the
floricultural units. Under traditional sector, the major production
constraint he found was the prices of pesticides, which were not
only high, but also of sub-standard quality. Under marketing
constraints, the prominent single constraint expressed was more
commission followed by middlemen problem and deduction of

xliv
more charges. Regarding market information, it was found that
there was complete absence of market information on demand
and prices.
The Department of Agricultural Economics, College
of Agriculture, Pune (2006) identified the constraints in
production and marketing of selected cut flowers and
vegetables under protective condition around Pune city as
unaffordable cost of planting material, non remunerative
prices, lack of storage facilities and good quality and cheap
packing materials. Lack of technical know-how and
malpractices by the intermediaries were also reported.
To summarize, the above studies indicated that the
cultivation of cut flowers requires highest fertilizers, picking
and labour charges. Few researcher revealed that the cut
flower cultivation is labour and capital intensive enterprise.
Some research worker concluded that the cultivation of cut
flowers quite and moderately profitable and requires highest
marketing cost. Hence it is necessary to know the economy of
cut flower cultivation in project under study.

xlv
3. METHODOLOGY

This chapter deals with the methodology adopted


for the present study. The importance and utility of study
depends upon the reliability of the data collected and the
soundness of materials and methods used in the study. Use of
an appropriate approach to the study is crucial for any
scientific investigation. This chapter deals with the brief
description of the methodology used in the present study.
3.1 Basic approach of the study
The major emphasis of the study is to study the
economics of production and marketing of selected cut flowers
under protected cultivation in Satara district of Maharashtra.
The objectives were fixed to cover all necessary aspects of
production cost using standard cost concepts. The necessary
data were obtained from different sources. The marketing
channels were also identified and their relative costs were
ascertained as part of the thesis. The survey also covered
constraints in production and marketing of cut flowers and
suggest remedial measures thereon and to identify various
factors influencing price of cut flowers to boost up this sector
further.
3.2 Location of study
The present study viz; Economic analysis of
production and marketing of selected cut flowers grown under
protected cultivation in Satara district has been taken up in
Western Maharashtra region of Maharashtra state. The study

xlvi
was undertaken because the area under flower cultivation in
the district is increasing day by day.
3.3 Sampling design
The study involves economics of cutflower under
protected cultivation so the sample for present study involves
selection of area i.e district, tahsil, villages and cultivators.
3.4 Selection of district
The Satara district is the major cutflower growing district
in Maharashtra because of favorable climate and easier access
to the market. Hence the cutflowers are grown under
protected cultivation on a large scale.
3.5 Selection of tahsil
The cut flowers are largely grown in Satara tahsil of
Satara district and many polyhouses are coming up. The
farmers send the cut flowers to the distant market like Pune
and Mumbai. Satara tahsil was purposviely selected for the
study because of having maxiumum area under flower
cultivation as compared to other tahsils in the district.

3.6 Selection of villages


The villagewise information on area under cutflowers
grown under protected cultivation was collected from the
Horticulture department. These villages were arranged in
ascending order according to area under cutflowers grown
under protected cultivation six villages were selected
randomly.

xlvii
i.Varne:- The village is situated 20 km away from Satara
tahsil. The facilities like primary school and
secondary school are available in village. The village
has a co-operative credit society and branch of
nationalize bank. Varne is connected by Kaccha
road about 5 km.
ii. Apshinge:- The village is situated 17 km away from tahsil
from Satara. The facilities like primary school,
secondary school and junior college are available in
village.
iii. Kameri:- The village is situated 24 km away from tahsil
from Satara city. The facilities like grampanchayat,
fair price shop are available in village. Medical
facility and post office are available. The village has
co-operative society and one branch of bank of
Maharashtra.
iv. Padali:- The village is situated 18 km away from Satara
city. The facilities like primary school, secondary
school , medical facility and post office are available
in village. The village has co-operative society .
v. Aarphal:- The village is situated 11 km away from Satara
city. The village has facilities like grampanchayat,
primary school and fair price shop. The village has
co-operative society.
vi. Patkhal:- The village is situated 6 km away from Satara
city. The village has facilities like primary school,
fair price shop and co-operative society.

xlviii
3.7 Selection of cultivators
The list of cut flower growers viz; roses, gerbera was
collected from the Horticulture Department and was classified
in to two categories i.e. roses, gerbera growers. The five
cultivators from each category was selected from each village
and thus total 10 cut flower growers was selected from each
village. Thus 30 rose cultivators and 30 gerbera cultivators
was selected randomly. In all 60 cut flower growers were
selected for the study.
3.8 Data requirement
A schedule was prepared for the collection of data which
was pre-tested and then finalized for data collection. The
reference period of primary data pertains to the year 2008-09.
The primary data required for the study were collected from
the sample growers through personal interview on aspects of
cost of production, marketing channels and their relative costs
and constraints in production and marketing of cut flowers.
In order to get better cooperation and reliable data the
respondents were informed about the purpose of the study
clearly. However, the schedule covered aspects such as
information, production, prices, post harvest handling,
marketing aspects and the problems encountered by them
while marketing their produce.
Secondary data was collected from international flower
auction center, APEDA and NHB for the period from 1999-
2008.

xlix
3.9 Estimation of costs and returns
The data were analysied with the help of standard
cost concepts normally used in Farm Management studies.
The simple tabular analysis was done to work out various
costs, gross returns and output-input ratio for the crop. The
cost concepts used are as follows.
3.9.1 Cost '
A'
It is also called as paid out cost. This cost
approximates the expenditure incurred by the cultivator in
cash and kind in the cultivation of the crop and includes the
following items.
1. Hired human labour (male and female)
2. Owned and hired bullock labour
3. Seeds
4. Manures
5. Fertilizers
6. Machinery charges
7. Plant protection charges
8. Irrigation charges
9. Interest on working capital
10. Land revenue and other cesses
11. Depreciation on implements, machinery and buildings
3.9.2 Cost 'B'
Cost '
B' was worked out by adding rental value of land
and interest on fixed capital in cost '
A'value i.e.
Cost '
A'+ Rental value of land + Interest on fixed capital.

l
3.9.3 Cost '
C'
Cost '
C' was calculated by adding imputed value of
family human labour in cost '
B'. i.e.
Cost '
B'+ Imputed value of family human labour.
3.10 Evaluation of inputs
1. Human labour
i) Causal labours were charged at the rate of actual wages
paid in the villages in cash and kind.
ii) Family male and female labours were charged at the
prevailing wage rates in the locality for causal labour.
2. Bullock labour
i) Owned bullock labour was evaluated on the basis of
hiring out rates prevailing in the village for the bullock
pair.
ii) In case of hired bullock, the actual rates paid from time
to time were considered.
3. Planting material
i) For purchased planting material, the actual cost paid
and expenditure incurred on procurement was takcn
into account.
4. Manures
The cost of farm yard manures produced on the
own farm was estimated at the prevailing rates in the locality.
In case of purchased farm yard manure, the actual price paid
and transportation cost was taken into account.

li
5. Fertilizers
The actual prices paid for fertilizers and their
procurement costs were considered.
6. Plant protection
This included the actual cost incurred on purchase
of insecticides, pesticides, fungicides and hiring charges of
spraying and dusting appliances.
7. Land revenue
It included land revenue and other cesses paid
along with land revenue.
8. Implements and machinery
Owned implements and machinery used were
charged at the hiring rates prevailing in the locality and for
hired implements and machinery the actual cost incurred was
taken into account.
9. Interest on working capital
The interest on working capital was calculated for
the crop period @ 6 per cent per annum.
10. Irrigation charges
The actual charges incurred for irrigation by
cultivators for flowers were considered. To estimate the
irrigation charges, following formula was used.

Depreciation Interest on
on + fixed capital
Irrigation
= irrigation for irrigation Plot
cost x
structure structure area
Irrigated gross cropped area
+
Irrigation hrs. x per hr. machine maintenance cost

lii
11. Depreciation on implements, machinery and farm
buildings
To estimate depreciation on implements, machinery
and farm buildings, following formula was used.
Present value of - 10% of value of
commodity commodity
Depreciation = ---------------------------------------------------------------
Remaining life of commodity
12. Interest on fixed capital
The interest was calculated at the rate of l0 per cent
per annum on the total fixed capital investment.
13. Rental value of owned land
Rental value of owned land was estimated as l/6th
of the value of gross produce i.e. value of main produce and
value of by produce.
3.11 Evaluation of output
The main produce of flowers were evaluated at the
actual prices received by the growers in the market.
3.12 Evaluation of marketing channels and their relative
costs
1. Marketing channel: It consists of agency that performs
various marketing functions so as to move the floral
products from the florists to the ultimate consumer.
2. Packaging material: It includes floral foam, plastic and
silver papers, tape, thread, thermocoal, ribbon and others.
3. Cost of marketing: Cost of marketing refers to the amount
spent by the producer seller and intermediaries in the sale
or purchase of commodity from the time of harvest till it is

liii
finally sold to the ultimate consumer. Cost of marketing
comprises the cost on account of packaging, transportation
and several other functions involved.
4. Price spread: It refers to the difference between price paid
by the consumer and price received by the producer for an
equivalent quantity of product. This spread consists of
marketing costs and margins of the intermediaries.
5. Commission agent: He is a person who, on behalf of his
principal and consideration of commission upon the
amount involved in each transaction, keeps in his custody
the goods of his principal and sells the same and holds
himself liable to deliver to the buyer and to make payment
of its price to his principal.
6. Wholesalers: Wholesaler buy the produce from producers/
commission agents and sale the produce through their
wholesale shops in regulated markets to retailers.
7. Retailer: He is a person who buys the produce from the
wholesaler and sells to the consumer.
8. Market intermediaries: These are individuals / agencies
that specialize in performing various marketing functions
involved in the purchase and sale of goods from producers
to consumers.
9. Wholesale margin: The difference between the auction
price and the price realized by the wholesale dealer.
10. Retailer margin: The difference between the price paid by
the retailer to the wholesaler dealer and that realized by
the retailer from consumer.

liv
3.13 Functional analysis
Following multiple linear function was useful to find out
the contribution of various factors influencing the net price
received from the sale of cut flowers.
Y = a + b1X1 + b2X2 + b3X3+b4X4 + b5X5+b6X6+b7X7 +Ut
where,
Y= Net price realized ( Rs.)/unit
X1= Quantity sold in ( no.)
X2= Grade-I quantity sold ( no.)
X3=Grade-II quantity sold ( no.)
X4= Distance ( kms )
X5= Packaging materials ( Rs.)
X6= Quantity sold ( no.) in winter season
X7= Quantity sold ( no.) in summer season
a = Constant
Ut= Error term
bi’s= Regression coefficient

lv
4. GENERAL INFORMATION OF THE AREA UNDER STUDY
4.1 Geographical location
Satara district is situated in the South-East part of the
state and situated to the Western side of Deccan Plateau. It
lies between 17050’ to 18011’ North latitude and 73033’ and
74054’ East latitude. Some part of the Satara district is
situated in Bhima basin and majority of the part is situated in
the Krishna basin. Solapur to Eastern side, Sangli to Western
side and Raigad to North Western Side. The total geographical
area of Satara district is 10480 sq.km. It cosists of 11 tahsils
out of which Satara tahsil had been selected for the present
study.
4.2 Population
Total population of the Satara district was 28.09
lakhs. Out of which 85.83 per cent of the total population was
living in rural areas with 78.52 per cent literacy.
4.3 Climate and rainfall
The climate of Satara district is characterized by dry and
hot climate during summer season in plain areas while cool
climate in hilly areas. During winter, climate is generally cool
in plain areas and temperature is very low in hilly areas.
There is vast variation in the intensity of rainfall in various
parts of the district. The central and Southern part of district
which comprises of Satara, Wai, Koregaon and Karad tahsils
received rainfall to the extent of 600 to 1200 mm. the Eastern
side tahsils viz. Phaltan, Man Khatav, and Northern side tahsil

lvi
Khandala are situated in low rainfall area receiving less than
600 mm rainfall.
4.4 Soils
In the basins of Krishna, Venna and Koyna rivers of Wai,
Javli and Patan tahsils, the soils are deep and fertile and also
these soils are formed from laterite rocks. In khandala, Man
and Khatava tahsils, the soils are rocky and infertile.
4.5 Land utilization pattern
It can be seen from the Table 4.1 that, total geographical
area of Satara district was 1058 thousand ha. out of which
net
Table 4.1 Land utilization pattern of Satara district
(‘000’ ha)
Percentage
Sr. to total
Land utilization Area
No. geographic
al area
1 Total geographical area 1058 100
2 Area under forests 138 13.04
3 Area not available for agriculture 129 12.19
4 Other uncultivable land 132 12.48
excluding fallow land
5 Current fallow land 57 5.39
6 Other fallow 77 7.28
7 Net sown area 525 49.62
8 Area sown more than once 163 ---
9 Gross cropped area 688 ---
10 Cropping intensity 131.04 ---
Source : District Socio-Economic Survey of Satara, 2009.

lvii
sown area was more ( 49.62 per cent) in Satara district
followed by area under forest ( 13.04 per cent) and
uncultivated land other than fallow land ( 12.48 per cent). The
gross 688 thousand ha. Intensity of cropping was found to be
131.04 per cent.
It was observed from Table 4.2 that, total area was
94800 ha. in case of Stara tahsils. Out of which net sown area
58800 ha. ( 62.02 per cent ) in Satara tahsil.
Table 4.2 Land utilization pattern of Satara tahsil
( ‘00’ ha)
Sr.
Land utilization Satara tahsil
No.
1 Total geographical area 948
(100)
2 Area under forests 94
(9.92)
3 Area not available for agriculture 82
(8.65)
4 Other uncultivable land excluding 41
fallow land (4.32)
5 Current fallow land 65
(6.86)
6 Other fallow 78
(8.23)
7 Net sown area 588
(62.02)
8 Area sown more than once 138
9 Gross cropped area 726
10 Cropping intensity 123.46
( Figures in parentheses indicate percentage to total geographical area)
Source : District Socio-Economic Survey of Satara, 2009.

lviii
The area under forest was more in Satara tahsil ( 9.92 per
cent ). Intensity of cropping was 123.46 per cent Satara
tahsils.
4.6 Cropping pattern
The area under different crops in Satara district during
the year 2009 is presented in Table 4.3
It can be seen from the Table 4.3 that, gross cropped
area in Satara district was 687967 ha. Out of which, area
under food and non-food crops was 550360 ha. ( 80 per cent)
and 137607 ha. ( 20 per cent), respectively. In total food food
grains, area under cereals was 56.50 per cent. Jowar was the
most important crop occupying area about 31.31 per cent of
the total cropped area. In non-food crops, more area was
under oil seeds ( 12.56 per cent ) followed by fodder crops
( 6.58 per cent).Other crops constituted to very small extent.
It was noticed from the Table 4.4 that, gross cropped
area was 72664 ha in Satara tahsils. Out of which, area under
food crops was 87.02 per cent in Satara tahsils. Area under
non-food crops was 12.98 per cent in Satara tahsils. The
share of total food crops was more i.e. 74.59 per cent in
Satara tahsils.

lix
Table 4.3 Cropping pattern of Satara district
( ha.)
Sr.No. Crop Area Percentage to
gross cropped
area
1 Jowar 215435 31.31
2 Bajara 66122 9.61
3 Wheat 35677 5.19
4 Rice 44622 6.49
5 Other cereals 26856 3.90
I Total cereals 388712 56.50
6 Total pulses 79453 11.55
II Total food grains 468165 68.05
7 Sugarcane 45065 6.55
8 Fruits and vegetables 33596 4.88
9 Miscellaneous food crops 3534 0.52
III Total food crops 550360 80
10 Cotton 3064 0.44
11 Other fibers 317 0.05
12 Oil seeds 86411 12.56
13 Total drugs and narcotics 419 0
0.06
14 Miscellaneous non food crops 2087 0.30
15 Total fodder crops 45309 6.59
IV Total non-food crops 137607 20.00
V Gross cropped Area ( III+IV) 687967 100
Source : District Socio-Economic review and District Statitical Abstract
of Satara district (2009)
In grain crops, the share of cereals was more i.e. 53.22 per
cent in Satara tahsils. Jowar was major crop in Satara tahsil (
37.93 per cent). Area under pulses was 21.37 per cent in
Satara tahsils. In non-food crops, more area

lx
Table 4.4 Cropping pattern of Satara tahsils in Satara
tahsil
( ha.)
Sr.No. Crop Satara
1 Jowar 27565
(37.93)
2 Bajara 4352
(5.99)
3 Wheat 2700
(3.72)
4 Rice 308
(0.24)
5 Other cereals 3748
(5.16)
I Total cereals 38673
(53.22)
6 Total pulses 15527
(21.37)
II Total food grains 54200
(74.59)
7 Sugarcane 4348
(5.98)
8 Fruits and vegetables 4224
(5.81)
9 Miscellaneous food crops 465
(0.64)
III Total food crops 63237
(87.02)
10 Cotton 1
(0.01)
11 Other fibers 60
(0.08)
12 Oil seeds 73.96
(10.18)
13 Total drugs and narcotics 88
(0.12)
14 Miscellaneous non food crops 160
(0.22)
15 Total fodder crops 1722
(2.37)
IV Total non-food crops 9427
(12.98)
V Gross cropped Area ( III+IV) 72664
(100)
( Figures in parentheses indicate percentage to GCA)
Source : District Socio-Economic review and District Statitical Abstract
of Satara district (2009)

lxi
was under oil seeds i.e. 10.18 per cent in Satara tahsil. It was
observed that, the cropping pattern of sample tahsil
dominated with cereals and pulses with respectively lesser
area under fruits and vegetables etc.
4.7 Livestock population
Livestock production is an important activity next to crop
production in the rural areas of Satara district.
Table 4.5 Livestock
Sr.No. Particulars Satara district
1 Cattle 31757
(29.83)
2 Buffaloes 25551
(24.00)
I Total bovines ( 1+2) 57308
(53.83)
3 Sheep 21511
(20.20)
4 Goats 26234
(24.64)
5 Other livestock 1420
(1.33)
II Total ( 3+4+5) 49165
(46.17)
Total livestock ( I+II) 106473
(100)
6 Total poultry birds 157551
( Figures in parentheses indicate percentage to GCA)
Source : District Socio-Economic review and District Statitical Abstract
of Satara district (2009)
It was observed from the Table 4.5 that, total livestock
population was 106473 in case of Satara tahsil. Out of the

lxii
total population, bovine population constituted to the extent of
53.83 per cent in case of Satara tahsils. Among all the bovine
animals, cattles were 29.83 per cent in case Satara tahsil. The
population of sheep were found to be the highest i.e. 20.20 per
cent of the total livestock population in Satara tahsil. The
number of poultry birds were 1.57 lakhs in case of Satara
tahsils.
4.8 Socio-economic features of cultivators
The general characteristics of the sample respondents
surveyed are presented in Table 4.6.
The average family size of rose and gerbera cultivators
were 6.1 and 5.9 . The overall literacy percentage was 84 in
both rose and gerbera cultivators.
Table 4.6 Socio-economic features of cultivators
Sr.No. Particulars Rose Gerbera
A No.of farmers 30 30
B Average family size ( Number) 6.1 5.9
C Education Level ( Number)
1 Post-graduate 0 1
(0.00) (16.95)
2 Graduate 2 1
(32.79) (16.95)
3 Secondary 2 2
(32.79) (33.90)
4 Primary 1 1
(16.39) (16.95)
5 Uneducated 1 1
(16.39) (16.95)
D Land holding ( ha) 2.2 2.3
1 Irrigated 1.9 2.12
2 Unirrigated 0.3 0.18
E Area under green house 0.08 0.10
( Figures in parentheses indicate percentage to total)

lxiii
5. RESULTS AND DISCUSSION

5.1 Orientation
The chapter is the core one dealing with the presentation
of the results obtained after analyzing the collected data. The
results are followed by a logical discussion thereon. The
chapter covers the general information about the sample unit,
cost of cultivation and marketing and profitability.
5.2 History and background information
The principle flowers grown in Maharashtra are
roses, carnation, chrysanthemum, marigold, aster, jasmine,
etc. In polyhouses, important flowers grown are roses,
carnation and gerbera. The climate of deccan plateau is
suitable for growing roses, gladioli, carnations, gerbera,
chrysanthemum, mogra, tuberoses, etc., while coastal climate
is suitable for orchids and anthuriums.
The protected cultivation of flowers and other high
value plants on a commercial scale in big polyhouses came
into existence the beginning of this decade. However, such
cultivation was limited to the corporate houses and the
erection of polyhouses as involved very high financial outlay
and technological support. Over the years, the technology was
indigenized to adopt by the Indians. This resulted in the
emergence of low cost polyhouses, the advent of which even
the small and marginal farmers are now able to exploit the
benefits of protected cultivation. In this context, an attempt
has been made to analyse per poly house erection cost, cost of

lxiv
cultivation and profitability of cut flowers under protected
cultivation.
5.3 General information about the polyhouse and the
produce of sample farmers
The distribution of sample respondents according to
polyhouse and soil is shown in Table 5.1.
Two types of polyhouses were observed i.e. GH-1
naturally ventilated and GH-2 partially controlled. The use of
GH-1 type of polyhouse ranges from 78 to 82 per cent in rose
and gerbera, respectively. Majority of polyhouses were erected
on medium type of soil ( 84 per cent ) and remaining (16 per
cent ) on light soil.
Table 5.1 Information about the polyhouses

Sr.No Particulars Rose Gerbera

1 Polyhouse type ( % )
I ) GH-1 78 82
ii) GH-2 22 18
2 Soil type ( % )
I) Light 18 16
ii) Medium 82 84
3 Drip irrigation ( % ) 100 100
4 Average area under polyhouse (ha ) 0.08 0.10
The produce was grown on raised bed with drip irrigation
system. The average area under polyhouses was 0.08 and
0.10 ha. for rose and gerbera, respectively.
5.4 Cost of polyhouse erection
The average cost of polyhouse construction depends
upon the total area, quality and quantity of steel used and

lxv
additional facilities like shading net, support net, etc. The
most important factor that determines the cost of construction
is the type of polyhouses, i.e. whether it is naturally
ventilated, partially controlled or fully controlled. The itemwise
cost of erection of polyhouses is presented in Table 5.2.
It has been observed that the average cost of erection of
rose polyhouse was Rs. 6.98 lakhs whereas, the
corresponding figures for gerbera was Rs.6.50 lakhs.
Table 5.2 Average cost of erection of polyhouse ( Rs.Lakhs)
Sr.N0 Particulars Rose ( 0.08 Ha) Gerbera ( 0.10 Ha)
1 Framework 3.25 2.98
(46.56) (45.85)
2 Polyfilm 0.48 0.46
(6.88) (7.08)
3 Shade net 0.45 0.44
(6.45) (6.77)
4 Support net 0.45 0.00
(6.45)
5 Facility unit 0.73 0.70
(10.46) (10.77)
6 Labour costs 0.70 0.60
(10.03) (9.23)
7 Other costs 0.92 1.32
(13.18) (20.31)
Total costs 6.98 6.5
(100) (100)
( Figures in parentheses indicate percentage to total)
The per cent share of frame work in the total cost
of erection of polyhouse for rose and gerbera was 46.56 per
cent and 45.85 per cent, respectively. It contribute nearly half
of the erection cost. This was followed by the cost of facility
unit with the respective share of 10.46 and 10.77 for rose and
for gerbera. The labour cost of erection of polyhouse was

lxvi
seventy and sixty thousand for rose and gerbera cut flowers.
The cost of construction of polyhouses for rose cut flower was
higher than that of gerbera. The main reason for higher cost
of construction of polyhouse in case of rose cut flower was an
additional structure, viz., support net that was required to be
fixed in the polyhouse for rose cut flower. The cost of support
net contributed about 6.45 per cent of the total cost of
polyhouse construction for rose cut flower. The material used
for framework was of galvanized iron.
It was seen that of the total cost of construction of
polyhouse, the cost of framework was more than 45 per cent
irrespective of the cut flowers grown. The next important item
of cost was polythene film which ranged from 6.88 to 7.08 per
cent of the total cost of polyhouse construction. The cost for
facility system and labour were more or less same for all types
of cut flowers. The other costs ranged between 13.18 to
20.31per cent of the total cost, which included the cost of light
arrangement, dripper, bed, etc.
5.5 Resource use structure
The adequate use of inputs at the required time
helps in boosting productivity. Therefore, the role of inputs is
crucial in the production of cut flowers. The average use of
physical input use for rose and gerbera flower production is
presented in Table 5.3

lxvii
Table 5.3 Average utilization of physical inputs
Sr.N0 Particulars Rose Gerbera
( 0.08 Ha) ( 0.10 Ha)
1 Human labour ( Man days ) 850.76 834.90
2 Machine (Hrs) 8.53 9.61
3 FYM ( truck load ) 9.66 8.56
4 Fertilizers
NPK ( Kg) 1260.00 1160.25
Micronutrient (Kg) 3.34 2.29
5 No.of irrigations 369.79 357.17
6 No.of sprayings and dustings 155.40 138.08

It was observed that the use of human labour was


maximum on rose cut flower polyhouses (850.76 man days )
and it was 834.90 man days for gerbera polyhouses. The use
of human labour on rose and gerbera cut flower producing
polyhouses was more because grading and packaging
operations were required to be carried out more frequently
and at the right time. The differential use of human labour for
rose and gerbera flowers was 16 man days due to harvesting,
packaging and marketing.
The use of machinery was around 9 to 10 hrs for
rose and gerbera. It was observed that use of tractor was
relatively more for preparation of land. The trend in the use of
FYM was almost similar to that of machinery use. It was
observed that the use of FYM was between 9 to 10 truck
loads. The use of rice husk, cocopit, vermicompost was
observed. The use of fertilizers was more on rose cut flower
producing polyhouses than gerbera polyhouses. The use of
micronutrients for rose cut flower producing polyhouses was

lxviii
3.34 kg and it was 2.29 kg in gerbera cut flower polyhouses. It
was also noticed that the per hectare use of NPK was observed
to be high in case of all the sample polyhouses to get the best
quality flowers. The number of irrigations was more in rose
sample polyhouses (369.79). The use of plant protection
chemicals was observed to be highest in rose sample
polyhouses .
To sum up, it was observed that there was no clear cut
indication regarding the highest use of any input in a single
cut flower production. The human labour, machine use and
the number of irrigations was used in slightly more quantities
for rose cut flower sample polyhouses in comparison with that
of gerbera cut flower sample polyhouses while, the fertilizer
use and use of plant protection chemicals were more on rose
cut flower producing sample polyhouses. However, the per
polyhouse input use on gerbera cut flower polyhouses was
observed to be moderate.
5.6 Per polyhouse cost of cultivation of cut flowers
The per polyhouse cost of cultivation of selected cut
flowers,viz., rose and gerbera, is shown in Table 5.4.
In the case of rose cut flower polyhouses, the cost of
cultivation, i.e. Cost '
C'was workedout to Rs. 6,16,101.84. In
this, the share of paid out cost, i.e. Cost'A'was 64.29 per cent
and the imputed costs, i.e. Cost '
B'had share of 95.41 per
cent. The major item of cost incurred was the apportioned cost
of planting material, which was Rs. 75130.05 (12.19 per cent )

lxix
Table 5.4 Average cost of cultivation of cut flowers per poly house
( Rs.)
Sr. Particulars Rose Gerbera
No. ( 0.08 Ha) (0.10Ha)
1 Hired H.L. 32872.54 31407.60
(5.34) (5.33)
2 Machinery 1737.68 1895.25
(0.28) (0.32)
3 Bed ( Apportioned) 6984.96 8242.50
(1.13) (1.40)
4 Fumigation ( Apportioned) 2022.30 15960
(0.33) (2.71)
5 Pl.material ( Apportioned) 75130.05 53529
(12.19) (9.08)
6 Fertilizers 19880.60 24769.50
(3.23) (4.20)
7 Irrigation 6227.40 6279
(1.01) (1.06)
8 Plant protection 14780.98 16590
(2.40) (2.81)
9 Land revenue 418.37 409.5
(0.07) (0.07)
10 Depreciation 32226.26 30461.55
(5.23) (5.17)
Working capital 192281.14 189543.9
(31.21) (32.15)
11 Interest on W.C. 11536.86 11372.63
(1.87) (1.93)
Cost A 396099.14 390460.43
(64.29) (66.22)
12 Rental value of land 120182.40 112149.45
(19.51) (19.02)
13 Interest on F.C. 71559.46 59964.45
(11.61) (10.17)
Cost B 587841 562574.33
(95.41) (95.42)
14 Family labour 28260.84 27024.90
(4.59) (4.58)
Cost C 616101.84 589599.23
(100) (100)
( Figures in parentheses indicate percentage to total)

lxx
for the rose polyhouses. The other paidout costs for the
polyhouses were hired human labour, fertilizers and plant
protection chemicals with the share of 5.34 per cent, 3.23 per
cent and 2.40 per cent, respectively. Under imputed costs, the
rental value of land was Rs. 120182.40 (19.51 per cent). The
family labour charges were workedout to Rs. 28260.84 (4.59
per cent) for polyhouses. For the gerbera cut flower producing
polyhouses, the total cost of cultivation, i.e. Cost '
C' was
workedout to Rs. 589599.23. The share of 'Cost'A'and Cost
'
B'was 66.22 and 95.42 per cent, respectively. The major item
of cost was the apportioned cost of planting material which
was to the tune of Rs. 53529 (9.08 per cent).

The other important items under cost were hired human


labour, fertilizers and plant protection chemicals with the
proportionate share of 5.33, 4.20 and 2.81 per cent
respectively. Among imputed costs, rental value of land was
Rs. 112149.45 (19.02 per cent). It was noted that the cost of
cultivation of rose cut flower was on the higher side than that
of gerbera.
5.7 Cost of marketing of cut flowers
The average per polyhouse marketing cost of cut flowers is
depicted in Table 5.5.
The average cost of marketing of produce was workedout
to be around Rs. 101894.80 and Rs.104252.20 for rose and
gerbera cut flowers, respectively.

lxxi
Table 5.5 Average cost of marketing of cut flowers per polyhouse ( Rs.)
Sr. Particulars Rose Gerbera
No
1 Grading and packing 28152.6 27939.6
(27.63) (26.80)
2 Transportation 24051.4 24994.8
(23.60) (23.98)
3 Commission 46321.2 46992.96
(45.46) (45.08)
4 Other expendiure 3369.6 4324.8
(3.31) (4.15)
Total 101894.8 104252.2
(100) (100)
( Figures in parentheses indicate percentage to total)
The commission of commission agents shared nearly 45 per
cent in two types of cut flowers. There was no much more
difference in the cost of grading and packaging transportation
in two types of cut flowers.
5.8 Output, costs and returns of selected cut flowers
Table 5.6 presents the data on output, costs and
returns from selected cut flowers. The average output of rose
cut flowers was of Nos. 217480. The per polyhouse cost of
production, gross and net returns for rose cut flowers were
estimated to be Rs. 717997 Rs. 1196140 and Rs. 478143 with a
benefit cost ratio of 1.67.The per polyhouse cost of production,
gross and net returns for gerbera cut flower was estimated to
Rs. 693851, Rs. 1243125 and Rs. 549274 respectively with a
benefit cost ratio of 1.79.

lxxii
Table 5.6 Per polyhouse profitability of cut flower production
( Rs )
Sr.No Particulars Rose Gerbera
.
1 Plant population 5000 6600
2 Flowers /plant 44 36
3 Output ( No) 217480 243750
4 Cost A 396099 390460
5 Cost B 587841 562574
6 Cost C 616102 589599
7 Cost of marketing 101894.8 104252.16
8 Cost of production 717997 693851
9 Production cost / unit 3.30 2.85
10 Gross returns 1196140 1243125
11 Returns at Cost A 800041 852665
12 Returns at Cost B 608299 680551
13 Returns at Cost C 580038 653526
14 Net Returns 478143 549274
15 Price / unit 5.50 5.10
16 B:C ratio 1.67 1.79
5.9 Marketing of selected cut flowers
a) Information on packaging and transportation
The information regarding the marketing of cut
flowers is given in Table 5.7
The material used for packaging is corrugated boxes, rolling
paper and rubber band. The number of flowers packed on one
bundle is 10 and each box contains 10-12 bundles. Moreover,
for the protection purpose of delicate and long sized petals of
gerbera flowers a polythene cap is used. The average distance for
marketing of rose and gerbera cut flower growers was 180 and 80
kms, respectively.

lxxiii
Table 5.7 Packaging and transportation of cut flowers
Sr. Particulars Unit Rose Gerbera
No
Type of packaging
1 Corrugated rolling paper packing % 100 100
2 Total number of cut flowers in one Nos 10 10
bundle
3 Material used for packing %
I) Polythene cap 100
ii) Rolling paper 100 100
iii) Rubber band 100 100
iv) Corrugated box 100 100
4 Average distance of the cut flower Km 180 80
market
5 Source of transportation %
I) Tempo 40 50
ii) Refrigerated van
iii) Tempo+ truck 40 50
6 Loss in transport 3 2
7 Constraints %
I) High transportation charges 12 16
ii) Malpractices followed in market 20 32
iii) No control over marketing systems 4 6
iv) No constriants 50 62
Nearly 40 per cent of the transportation was done by
tempo only. The transport losses was reported to be 2-3 per
cent extent only
b) Selling pattern of cut flowers
The information related to the place of sale and
intermediaries of selected cut flowers is depicted in Table 5.8.
About 92 per cent of the rose produce and 85 per cent
gerbera produce sold in Pune market while very few (around 8
and 15 %) sold in the local market. Out of the total producers,

lxxiv
90 and 92 per cent sold produce through commission agents
in Pune, while an average of 10 and 8 per cent of rose and
gerbera flowers sold directly to retailers.
Table 5.8 Market system
Sr.No Particulars Rose Gerbera
1 Market sale ( % )
I) Pune 92 85
ii) Local 8 15
2 Intermediaries ( % )
I) Commission agent 90 92
ii) Retailers 10 8
3 Types of sale ( % )
I) Auction 30 40
ii) Predetermined price 70 60

5.10 Price variations for cut flowers


The various factors, viz., seasons, markets in which
cut flowers were sold and the grades of cut flowers were found
to dictate the prices received for flower. They may influence
each of these cut flowers differently and therefore, will fetch
different prices. The observations made are presented in Table
5.9
It was observed that in case of these two cut flower
average price received during monsoon season was on the
lower side, while winter prices were on higher side. The good
quality of cut flowers has demand during festival occasion
such as Ganpati, Dassera, Diwali, Christmas, marriage
season and various days celebrated in colleges, are the main
reasons for higher prices of cut flower in winter season. The
proportion of all these two selected cut flower during winter

lxxv
season was more than that in summer and monsoon season
added together.
Table 5.9 Price variations for cut flowers ( Rs/ No )
1 Season Rose Price Gerbera Price
I Winter 242511 4.80 231360 4.62
(38.81) (40.20)
ii Summer 171150 4.60 162112 4.2
(27.39) (28.17)
iii Monsoon 211232 3.90 182011 3.85
(33.80) (31.63)
Total 624893 4.43 575483 4.22
(100) (100)
2 Grade
I G-I 410756 4.90 352350 4.30
(63.56) (63.34)
ii G-II 204324 4.70 186064 3.90
(31.62) (33.45)
iii G-III 31120 4.10 17868 2.80
(4.82) (3.21)
Total 646200 4.57 556282 3.67
(100) (100)
( Figures in parentheses indicate percentage to total)

However, in monsoon season, though the quantity of cut


flowers sold was more than that of in summer season, the
prices fetched are less than those in summer season. The
quality of cut flowers was poor in winter. It was concluded,
therefore, that the season has an influence on the prices
received for these two cut flowers.
It was observed that the average prices received for
grade-I cut flowers of rose and gerbera were higher than
those of grade-II cut flowers. For grade-III (ungraded) flowers,
the average prices received were very low with comparison to

lxxvi
the other two grades. The proportion of grade-l and grade-II
cut flowers was about 64.68 per cent and 33.44 per cent,
respectively. The proportion of grade-III cut flowers sold was a
negligible (5 per cent). Therefore, though price received for
grade-III cut flowers was very low, it did not influence the
returns of the growers to a great extent. The overall average
prices, however, tend to rule, largely around the grade-II
prices.
To sum up, the net price received for the sale of cut
flowers was influenced by the season in which they were sold
and the grade of cut flowers.
5.11 Price spread in selected cut flowers
The per flower price spread of rose and gerbera in
domestic market is shown in Table 5.10
According to the response of cut flower growers under
protected cultivation, the intermediaries are part of marketing
and they are very much required in marketing process. The
intermediaries render some sought of service to earn profit for
their existence. The price paid by rose and gerbera consumers
in domestic market was Rs.7.64 and Rs.7.38, respectively.
The ultimate aim is to have maximum share of producer in
consumers’ rupee. The producers share worked out to 71.99
and 69.11 per cent for rose and gerbera, respectively. In case
of rose flower the total expenses incurred by producer,
wholesaler and retailar in domestic market accounted to
23.03 per cent. The profit made by wholesaler and retailer in
domestic market was 10.47 and 6.54 per cent , respectively.

lxxvii
The more profit earning was made by wholesalers due to more
margin accounting to Rs.0.80 ( 10.47 per cent ). In the case of
gerbera the profit made by wholesaler and retailer in domestic
market was 12.20 and 9.49 per cent , respectively.
Table 5.10 Price spread in marketing of cutflower
Rose Gerbera
Sr.No Particulars Rs/unit Rs/unit
1 Gross price received by the 5.50 5.10
producers (71.99) (69.11)
2 Market charges by producer 0.46 0.42
(6.02) (5.69)
4 Gross price paid by the 5.04 4.68
wholesaler to producer (65.97) (63.41)
5 Expenses of wholesalers 0.70 0.60
(9.16) (8.13)
6 Margin of the wholesalers 0.80 0.90
(10.47) (12.20)
7 Price paid by retailor 3.80 3.70
(49.74) (50.14)
8 Expenses of retailor 0.60 0.50
(7.85) (6.78)
9 Margin of the retailor 0.50 0.70
(6.54) (9.49)
10 Price paid by consumers in the 7.64 7.38
market (100) (100)
( Figures in parentheses indicate percentage to the price paid by the consumer)
5.12 Prob1ems in production of cut flowers
The information on constraints faced by the cut flower
growers are interviewed by using the scheduled and the
problems in production under protected cultivation and
marketing of cut flowers faced by the farmers are represented in
Table 5.11

lxxviii
Table 5.11 Problems faced in production and marketing
of cut flowers
Sr. Particulars No Per cent
No.
A Production
1 Lack of credit facility 49 81.67
2 Lack of technical know-how 25 41.67
3 Non avalability of labour 40 66.67
4 Non avalability of plant material 13 21.67
5 Incidence of pest and diseases 31 51.67
6 Lack of electricity 5 8.33
B Marketing
1 Non avalability of packaging materials 22 36.67
2 Inadequate transportation facilities 8 13.33
3 Absence of organized market 45 75.00
4 High price fluctuation 58 96.67
5 High packaging material cost 26 43.33
6 Lack of storage facilities 22 36.67
7 Non avalability of freight space 39 65.00
8 High commission charges 11 18.33

The maximum numbers of farmers have opiened that the


high price fluctuation ( 96.67 per cent ) was the major constraint
in the cut flower marketing followed by inadequate credit for the
establishment ( 81.67 per cent). Major cut flower growers under
protected cultivation were big firms only who did not face much
problem in technical know-how, however small and medium
farmers who have entered this industry recently faced this
constraint ( 41.67 per cent). Due to urbanization effect human
labour was scarce in the study area this scarcity of human
labour was faced by 66.67 per cent cultivators. Since cut flowers
are grown under protected condition incidence of pests and
diseases should be taken care if not it causes economic losses to
farmers destroying entire produce. This constraints was faced by

lxxix
51.67 per cent of farmers. The other constriants faced by farmers
were non avability of packaging materials ( 36.67 per cent), lack
of electricity ( 8.33 per cent). In case of marketing, the
constraints of inadequate transport facilities was expressed by
13.33 per cent of cultivators. The other marketing constraints
faced by the producers were unorganized markets ( 75.00 per
cent). High cost of packing materials ( 43.33 per cent ), lack of
storage facilities ( 36.67 per cent ) non availability of freight
space ( 65.00 per cent ) and high commission charges ( 18.33 per
cent )
5.13 Remedies on the problems
While studying the constraints faced by the cultivators,
their views and opinions were also noted regarding these
problems. Some remedies on these problems are listed below:
1. Supply of seed material is made at in centric prices of
government agencies.

2. Timely availability of inputs be ensured.


3. Proper extension services regarding the technical know
how should be provided.

4. Subsidized supply of fertilizers by Government.


5. Highly effective chemicals be identified.
6. Need for extension work for dissemination of information
through village co-operative societies regarding financial
assistance.
7. International standard grades be compared with local
grades.
8. Low rate high quality packing material be ensured.
10. Refrigerated vans for distant transport.

lxxx
5.14 Functional analysis
The factors, viz., seasons in which cut flowers are
sold, markets in which cut flowers are sold and grades of cut
flowers are responsible for variation in net price received for
sale of cut flowers. The results of functional analysis are
presented in the Table 5.12
The coefficients of multiple determination ( R2 ) indicates
the proportion of total variation in the dependent variable
jointly explained by the independent variables. It indicates the
percentage change in net price realize associated with one unit
change in the concerned variable at its geometric mean level,
when other factors are being held constant.
A) Rose
The variables like quantity sold in no.(X1), grade-I
quantity sold in no.(X2), grade-II quantity sold in no.
(X3),Distance in km (X4), packaging materials (X5) quantity
sold in winter (X6) and quantity sold in summer (X7) included
in the multiple linear function analysis of rose have jointly
explained 68 per cent variation in the net price realize. The
variables like quantity sold in no.(X1), grade-I quantity sold in
no.( X2), packaging materials (X5) was significant at 1per cent
level of significance whereas the quantity sold in winter (X6)
and summer (X7) was significant at 10 per cent level of
significance. Price premium for rose cut flowers sold in total
quantity would be of 0.28 per cent per cut flower, while those
sold in grade-I would have a price premium 0.48 per cent per
cut flower. One would get a price premium of 0.54 per cent

lxxxi
per cut flower for the proper packaging material. while those
sold in winter season would get a price premium of 0.37 per
cent per cut flower. The variables like grade-II quantity sold
no. (X3) , Distance in km (X4) was non significant. The overall
'
F'value is highly significant.
B) Gerbera
Table 5.12 Results of functional analysis
Sr.No Particulars Rose Gerbera
1 Intercept 0.2120 0.1320

2 Quantity sold in no. (X1) 0.2825*** 0.5176*


(0.1232) (0.2680)
3 Grade-I quantity sold in no.( X2) 0.4864*** 0.7642***
(0.2152) (0.3480)
4 Grade-II quantity sold in no. (X3) 0.3215NS 0.4900NS
(0.2317) (0.5670)
5 Distance in km (X4) 0.2678NS 0.1278NS
(0.1837) (0.5473)
6 Packaging material Rs. (X5) 0.5473*** 0.6826***
(0.2123) (0.2060)
7 Quantity sold in winter ( X6) 0.3791* 1.7456*
(0.1925) (0.8731)
8 Quantity sold in summer ( X7) 0.4123* 0.4086***
(0.2124) (0.1462)
9 R2 0.68 0.70

10 No.of observations 30 30

11 Degrees of freedom 22 22

12 ‘F’ Value 7.90*** 7.95***


( Figures in the parentheses are the standard error of respective
regression coefficients)
*** Significant at 1 per cent level of significance
* Significant at 10 per cent level of significance
The value of coefficient of multiple determination, is 0.70
which implies that nearly 70 per cent variation in net price

lxxxii
received for gerbera cut flower are explained by the variables
under consideration. The variables like quantity sold in grade-
I(X2) , packaging materials (X5) and quantity sold in summer (
X7) was significant at 1 per cent level of significance whereas
the quantity sold in no. ( X1 ) and quantity sold in winter ( X6 )
was significant at 10 per cent level of significance.
Price premium for gerbera cut flowers sold in total
quantity would be of 0.51 per cent per cut flower, while those
sold in grade-I and summer would have a price premium 0.76
and 0.40 per cent per cut flower, respectively. While those sold
in winter season would get a price premium of 1.74 per cent
per cut flower. The variables like grade-II quantity sold no. (X3)
and Distance in km (X4) were non significant. The '
F'value
is very high indicating a high overall significance of the
regression equation.

lxxxiii
6. SUMMARY AND CONCLUSIONS

This chapter deals with the summary of research


findings, the conclusions and the policy implications thereon.
The main objectives of the present study were to study
economics of production of selected cut flowers under
protected cultivation, to study marketing channels and their
relative costs, to ascertain constraints in production and
marketing of cut flowers and suggest remedial measures
thereon and to identify various factors influencing price of cut
flowers. Primary data on the aspects like cost of production
and marketing was collected from producers, market
functionaries through personal interviews method with the
help of schedules for year 2008-09. Secondary data was
collected from international flower auction center, APEDA and
NHB for the period from 1999-2008.The results obtained from
the analysis of data have been briefly summarized as under.
6.1 Summary
1. Two types of polyhouses were observed i.e. GH-1
naturally ventilated and GH-2 partially controlled. The
use of GH-1 type of polyhouse ranges from 78 to 82 per
cent in rose and gerbera, respectively. The average cost
of erection of rose polyhouse was Rs. 6.98 lakhs
whereas, the corresponding figures for gerbera was
Rs.6.50 lakhs. The per cent share of frame work in the
total cost of erection of polyhouse for rose and gerbera
was 46.56 per cent and 45.85 per cent, respectively. It

lxxxiv
contribute nearly half of the erection cost. The cost of
construction of polyhouses for rose cut flower was higher
than that of gerbera. The main reason for higher cost of
construction of polyhouse in case of rose cut flower was
an additional structure, viz., support net that was
required to be fixed in the polyhouse for rose cut flower.
2. The use of human labour was maximum on rose cut
flower polyhouses (850.76 man days ) and it was 834.90
man days for gerbera polyhouses. The use of human
labour on rose and gerbera cut flower producing
polyhouses was more because grading and packaging
operations were required to be carried out more
frequently and at the right time. The use of machinery
was around 9 to 10 hrs for rose and gerbera.
3 In the case of rose cut flower polyhouses, the cost of
cultivation, i.e. Cost '
C' was workedout to Rs.
6,16,101.84. In this, the share of paid out cost, i.e. Cost'
A'was 64.29 per cent and the imputed costs, i.e. Cost '
B'
had share of 95.41 per cent. The major item of cost
incurred was the apportioned cost of planting material,
which was Rs. 75130.05 (12.19 per cent ) for the rose
polyhouses. The other paidout costs for the polyhouses
were hired human labour, fertilizers and plant protection
chemicals with the share of 5.34 per cent, 3.23 per cent
and 2.40 per cent, respectively. For the gerbera cut
flower producing polyhouses, the total cost of cultivation,
i.e. Cost '
C'was workedout to Rs. 589599.23. The share

lxxxv
of 'Cost'A'and Cost '
B'was 66.22 and 95.42 per cent,
respectively. The major item of cost was the apportioned
cost of planting material which was to the tune of Rs.
53529 (9.08 per cent).
4 The average cost of marketing of produce was workedout
to be around Rs. 101894.80 and Rs.104252.20 for rose
and gerbera cut flowers, respectively. The commission of
commission agents shared nearly 45 per cent in two
types of cut flowers.
5. The average output of rose cut flowers was of Nos.
217480. The per polyhouse cost of production, gross and
net returns for rose cut flowers were estimated to be Rs.
717997 Rs. 1196140 and Rs. 478143 with a benefit cost
ratio of 1.67. The per polyhouse cost of production,
gross and net returns for gerbera cut flower was
estimated to Rs. 693851, Rs. 1243125 and Rs. 549274
respectively with a benefit cost ratio of 1.79.
6. The number of flowers packed on one bundle is 10 and
each box contains 10-12 bundles. Moreover, for the
protection purpose of delicate and long sized petals of
gerbera flowers a polythene cap is used. The average
distance for marketing of rose and gerbera cut flower
growers was 160 and 90 kms, respectively.
7. About 92 per cent of the rose produce and 85 per cent
gerbera produce sold in Pune market while very few
(around 8 and 15 %) sold in the local market. Out of the

lxxxvi
total producers, 90 and 92 per cent sold produce
through commission agents in Pune.
8. In case of these two cut flower average price received
during monsoon season was on the lower side, while
winter prices were on higher side. The good quality of cut
flowers has demand during festival occasion such as
Ganpati, Dassera, Diwali, Christmas, marriage season
and various days celebrated in colleges, are the main
reasons for higher prices of cut flower in winter season.
The average prices received for grade-I cut flowers of rose
and gerbera were higher than those of grade-II cut
flowers. For grade-III (ungraded) flowers, the average
prices received were very low with comparison to the
other two grades.
9. The price paid by rose and gerbera consumers in
domestic market was Rs.7.64 and Rs.7.38, respectively.
The ultimate aim is to have maximum share of producer
in consumers rupee. The producers share worked out to
71.99 and 69.11 per cent for rose and gerbera,
respectively.
10. The maximum numbers of farmers have opiened that the
high price fluctuation ( 96.67 per cent ) was the major
constraint in the cut flower marketing followed by
inadequate credit for the establishment ( 81.67 per cent).
11 The variables like quantity sold in no.(X1), grade-I
quantity sold in no.( X2), grade-II quantity sold in no.
(X3),Distance in km (X4), packaging materials (X5)

lxxxvii
quantity sold in winter (X6) and quantity sold in summer
( X7) included in the multiple linear function analysis of
rose have jointly explained 68 per cent variation in the
net price realize. The variables like quantity sold in
no.(X1), grade-I quantity sold in no.(X2), packaging
materials (X5) was significant at 1per cent level of
significance whereas the quantity sold in winter (X6) and
summer (X7) was significant at 10 per cent level of
significance. Price premium for rose cut flowers sold in
total quantity would be of 0.28 per cent per cut flower,
while those sold in grade-I would have a price premium
0.48 per cent per cut flower.
12 The value of coefficient of multiple determination, is 0.70
which implies that nearly 70 per cent variation in net
price received for gerbera cut flower are explained by the
variables under consideration. The variables like
quantity sold in grade-I(X2) , packaging materials (X5)
and quantity sold in summer (X7) was significant at 1 per
cent level of significance whereas the quantity sold in no.
(X1) and quantity sold in winter (X6) was significant at
10 per cent level of significance. Price premium for
gerbera cut flowers sold in total quantity would be of
0.51 per cent per cut flower, while those sold in grade-I
and summer would have a price premium 0.76 and 0.40
per cent per cut flower, respectively.

lxxxviii
6.2 Conclusions
i. The average cost of construction of a polyhouse was
found to be more on rose cut flower producing farms.
The average per polyhouse cost of cultivation was found
to be more in rose cut flower producing farms.
ii. The major items of cost of cultivation were human
labour, cost of planting material, fertilizers and plant
protection chemicals, rental value of land .
iii. In terms of absolute net returns, gerbera cut flower gave
the highest net returns.
6.3 Policy implications

i. The floriculture industry should be encouraged by


evolving low cost polyhouse structure and good quality
varieties indigenously.

ii. The Government should make available market


information to the farmers which will enable them to
plan the production and market the produce.

iii. The Government should make arrangements for


adequate capital and infrastructure facilities like
transport and cold storage to boost up this industry.

iv. During the peak season, there is more demand and


supply is very less which causes wide price fluctuation
and the advantage of which is mostly taken by the
traders. Therefore, a regular supply as per demand be
assured.

v. The cultivation of rose and gerbera in Satara district is a


highly profitable proposition. These crops should,
therefore be cultivated on large area.

lxxxix
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Indian Journal of Horticulture, Vol. 46(3), pp. 407-
412.
Subrahmanyam, K.V. (1989): '
Economics of production and
marketing of roses in Karnataka'
. Indian Journal of
Horticulture, 46(3), pp.407-412
Kumar (1997): '
Floriculture people speak out'
. Agriculture and
Industry survey. Feb. 1997, p. 28.
Tilekar, S. N. (1999): ‘Economics of production of cut flowers
under polyhouse conditions'
. R.R.C.. M.P.K.V.,
2000-2001, pp. 23-26.

xcii
Tilekar, S. N. (2000). '
Price analysis of cut flowers produced
around urban of western Maharashtra'
. Ad-hoc
project report. 2001, M.P.K.V.
Thippaiah (2005). Floriculture in Karnataka: performance,
prospects and problems. Agricultural Development
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Social and Economic Change, Bangalore. p. 99-106.
Tuvenhout, A. T., and Rozen, B.V. (1995). Growing roses - an
industrial approach. Paper resented at Floritech
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Further thrust in Horticulture'
.
Kisan World. 25(5), pp. 39-41.

xciii
Schedule
Mahatma Phule Krishi Vidyapeeth, Rahuri,
Department of Agricultural Economics

Name of the Student : Mr. Kadam Raviraj Bacharam


Year of data collection : 2009-2010
Title : Economic analysis of production and
marketing of selected cut flowers grown under
protected cultivation in Satara district.
1. Details of farm family:
a. Name of the farmer:
b. Village: c. Tahsil: d. District:
e. Education: f. Age:
g. Main occupation:
h. Subsidiary occupation:
2. Family
Sr. Name of family Age Relation with
Education Occupation
No. member (Yrs) Head
1
2
3
4
e. Land holding

i. Land Owned : ha
ii. Permanent fallow : ha
iii. Land under cultivation : ha
iv. Unirrigated area : ha
v. Irrigated area : ha
vi. Area sown more than once : ha
vii. Current fallow : ha
viii. Source of irrigation : canal/Well/other
ix. Land revenue : Rs.
x. Survey number :

xciv
4. Farm assets
Sr. Purchase Repairing
Present
No. year charges Remaining
Type of building No. value
During the Life
(Rs.)
year (Rs.)
1. Residential house
2. Bullock byre
3. Engine shed
4. Godown
5. Others

5. Livestock
Sr. Purchase Present
Type of livestock No. Breed Age
No. year value (Rs.)
1. Bullocks
2. Cows
a. Calves
3. Buffaloes
a. Calves
4. Sheep and Goats
5. Poultry
6. Others
6. Implements and machinery
Present Repairing Remaining
When
value Charges life
Name of purchased
No. (Rs.) (Rs.)
implement
Value
year
(Rs.)
1.Tractor
2.Plough(Iron)
3.Plough(wooden)
4.Seed drill
5Harrow
6.Hoe
7.Bullock cart
8.Sprayer
9.Duster
10.Thresher
11.Winnower
12.Others

xcv
7. Area under protected cultivation ha

8. Establishment cost of hi-tech


Year of establishment: - Area: - ha
Life of structure:-
Sr. Amount in
Operations Number
No Rs.
A. Buildings and other structures
a. land
b. greenhouse structure
i) naturally ventilated
ii) environmental controlled
c. cold storage structures with
capacities and area
d. packaging and grading structure
e. office buildings
B. Equipments
a. sprayers
b. fertigation unit
c. bore wells
d. trolleys
e. grading equipments
C. Others
a. generators
b. fence
c. electrical installation
d. Office materials
e. A/C Van
f. other vehicles
g. head office fixed
assets
h. underground tank
i. miscellaneous
D. Garden
establishment
a. labour
b. material
1.plant materials with spacing
2.mannure
3.fertilizer
4.ppc
5.cocopeats/
stands/pots

xcvi
9. Cost of cultivation of /rose / gerbera
Area under crop: survey No.:
Variety: source of irrigation:

Labour Required
Material required
Sr. No. of Family Hired Machinery
Operations Remarks
No. operations charges (Rs.) Value
M W B M W B Name Qty
(Rs)
1. Preparatory tillage
a.Ploughing
b.Harrowing
c.Clod crushing
d.stubble collection
FYM Application(C.L.)
2. Sowing
a. preparation of ridges
and furrows
b.Planting with spacing
3. Irrigation
4. Weeding
1.
2.
5. Earthing up
6. Crop protection
7. Fertiluizer application
N
P
K
8. Pinching
9. Pickings
1.
2.

Total product in Kgs :


Value (Rs.) :
Channel wise produce marketed by the sample growers

Name of crop :

Quantity Value
Sr.
Channel marketed Realised
No.
(Kg) (Rs.)
I Producer - Consumer
II Producer - Retailer
III Producer - Wholesaler - Retailer - Consumer
IV Producer - Wholesaler - Packers - Retailer -
consumer
Total
10. Details of grading, packing and packing material
a) Name of crop:
b) What is the basis for grading of produce?
Colour/ size/ appearance / diameter /stalk length /other.

Total type
Labour charges Labour charges
of package used
Non- Total
Graded Male Female Remark
Month graded Male Female Labour Packing
Produce Name Cap. No. of No. of About reuse
Produce No. of charge No. of charge charges Charge(Rs.)
qty. value charge charge
Hrs. Hrs (Rs.)
Hrs. Hrs.
Jan
Feb
March
April
May
June
July
Aug
Sept
Octo
Nove
Dec
Total
11. Details on transport, marketing cost and sale of produce to market
a) Name of market:
b) Name of crop:
No. of Loss in
Transport cost Labour charges
Mode Units transport Comm.
Total Distance Octri Weighting
Month Of send Per Per Total Charge
Qty. Loading Un-loading Value (RS.) charge
transport to Unit Qtl Cost Qty. (Rs.)
market (Rs.) (Rs.) (Rs.)
(Rs.) (Rs.) (Rs.)
Jan
Feb
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Total

2
General Questions for Cultivator
1) Is seed material available in time ? Yes / No.

2) Do you receive any loan for the crop ? Yes / No.

3) Wheather labour available in season ? Yes / No.

4) Wheather there is assured market for flowers ? Yes / No.

5) Do you perform grading of produce ? Yes / No.

6) From where you bring packing material ?

7) Wheather trader / commission agent send the packing


material back to grower ? Yes / No.

8) Through whom the produce is transponted ? Yes / No.


By own/hundekari / merchant / transpont agent/
Co-operative society.
9) Is there any delay in payment ? Yes / No.
10) Do you get market information before sale of product ? Yes / No.
11) Which are the varieties ?

12) Are there any difficulty regarding transport ?

13) Do you store the produce ? Yes / No.

14) Is there any storage facilities ? Yes / No.

15) In which month you get higher market price ?

16) Is there plant protection material available in time ? Yes / No.

17) Whether it is possible to transport and sale of produce


through co-op society ? Yes / No.
Mr. KADAM RAVIRAJ BACHARAM
A candidate for the degree
of
MASTER OF SCIENCE (AGRICULTURE)
in
Agri. Economics
2012

Title of Thesis : Economic analysis of production and


marketing of selected cut flowers grown
under protected cultivation in Satara
district

Major Field : Agri. Economics

BIOGRAPHICAL INFORMATION

Personal data : Born at Bharatgaon, Tal. Satara, Dist.


Satara on 14th July, 1987. Son of Mrs.
Yashoda and Mr. Bacharam Kadam

Educational : Passed S. S. C. examination from


Ajinkyatara Madhyamik Vidhyamandir,
Shahunagar, Shendre, Tal. Satara,
Dist. Satara in 2000 with First Class.

: Passed H. S. C. examination from


M.R.S.V. Jr. College, Phaltan, Tal.
Phaltan, Dist. Satara in 2004 with
First Class.

: Received the Bachelor of Agriculture


from College of Agriculture, Kolhapur
in 2008 with First Class.

Address : A/p, Bharatgaon


Taluka and District Satara
Cell No. : 9921812210