Sie sind auf Seite 1von 27

Floriculture business in the

Nilgiris - an economic analysis

T.M. Gajanana, M. Sudha, D. Sreenivasa


Murthy and V. Dakshinamoorthy
IIHR, Bangalore
Area and Production of flower crops
Year Area (ha) Production (t)
(lakh No)
1991-92 30,909 1,48,603
(22)
1993-94 53,212 2,32,536.32
(5122.75)
1995-96 81,923 3,33,758.79
(5368.4)
1997-98 65,696 3,65,685
(6121.523)
1999-00 88,607 5,09,193.60
(6806)
2005-06 126235 6,93,401
(27618)
Major flower growing states
State % area under flowers

Tamil Nadu 29.18

Karnataka 22.53

Andhra Pradesh 11.51

Maharashtra 8.09

West Bengal 6.10

These five states account for about 71% area under flowers in the
country.
Floriculture Business
Non-traditional floriculture/Hi-tech floriculture
(Modern/Cut flowers):

The flowers are usually harvested with a long stem which are
used for vase purposes, office arrangements, bouquets, hand
posy and for gift purposes.

Modern/Cut flowers :
Gladioli
hi-tech Rose
Carnation
Gerbera
Orchids
Anthuriums
Lilium
Trend in Export of Floricultural
products (Rs. Millions)
Particulars 1991-92 1994-95 1997-98 2001-02 CGR* (%)

Cut flowers 3.99 29.98 189.41 557 64.03

Dried 64.35 195.78 581.10 940 33.55


flowers
Live plants 40.15 60.43 33.73 15 -12.17

Dried plants 23.99 10.35 48.38 - 9.45

Bulbs, 12.06 11.83 29.81 25 11.93


Tubers etc
Total 144.54 308.37 882.43 1535 29.47

* Compound Growth Rate; The total export value for the year 2005-06 is Rs.
2994 million.
Export of Floriculture products
1991-92 1996-97
4% 2%
3%

18% 14%
29%

Cut flowers

Dried flowers

49% Live plants

Dry plants
30%
51%

0%
2001-02
2%

1% 36%

61%
Floriculture business in the Nilgiris, TN
• Genesis
• Established comparative and competitive advantage for Tea
• Agro climatic potential for a variety of flower crops– untapped
• Changing global order demands crop diversification?

• Objectives
• To examine the present production and marketing
opportunities for floricultural crops in Nilgiris district and
• To estimate the market potential and there of the marketing
strategies for boosting floriculture business in the district.
Focus Area and crops
• Focus area
• Udhagai (42%) Coonoor (19.87%) and Gudalur
(32.9%) – production centres
• Bangalore and Coimbatore – Destination centres
• Focus crops
• Carnation (28.98%), bird of paradise (22.3%),
anthurium (15.55%), lilium (11.88%), rose (10.8%),
alstroemeria (5.19%) and gerbera (2.48%)
Methodology
• Survey and Rapid Appraisal
• Detailed costs, returns and profit analysis
of selected crops
• Market survey and analysis
• Estimation of demand and supply
• Market potential estimation
Study area
• HADP, Nilgiris
Analytical Tools- Market Supply
estimation
• Market supply or production of cut
flowers
Sj = Qj x Aj
Where
Sj = Total production of jth cut flower
crop per annum in lakh numbers
Qj = Yield per hectare of jth cut flower
in lakh numbers
Aj = Area under jth flower crop in hectares
Market demand estimation

Dj = {∑Qij(WS) } + Qj(RL)
i = 1 to n markets
Where
Dj = Demand for jth cut flower crop per
annum in lakh numbers
Qij (WS)= Quantity demanded of jth flower
crop per annum by the wholesalers in the
ith market in lakh numbers
Qj(RL) = Quantity demanded of jth flower crop per
annum by the retailers in the local market
in lakh numbers
Comparative Economics of Flowers grown in Ooty
(Rs/500 m2)

Items Carnation Gerbera Lilium Rose Rose


(without (With
subsidy) subsidy)

Costs 187652 149477 1233414 121912 94586

GR 393120 160560 1688000 99750 99750

NR 205468 11083 454586 -22162 5154

Yield (No) 144000 48960 80000 52500 52500

Cost of 1.30 3.05 15.42 2.32 1.80


Production
(Rs/stem)

Price (Rs/stem) 2.73 3.28 17.10 1.90 1.90

NR 1.43 0.23 1.68 -0.42 0.10

BCR 2.09 1.07 1.37 - 1.05


Margin of wholesaler in cut flower trade
Flower Purchase Marketing Selling wholesaler’s
price cost price margin
Carnation
Star Hotels 3.00 - 5.00 2.00(67%)
Bangalore 3.00 0.14 3.50 0.36(12%)
Coimbatore 2.50 0.10 3.00 0.40(16%)
Kolkata 3.00 0.39 4.00 1.00(33.3%)
Gerbera
Bangalore 3.00 4.00 1.00(25%)
Bird of paradise
Star Hotels 10.00 - 15.00 5.00(50%)
Margin of retailer in cut flower sale at
Ooty
Flower Purchase Marketing Selling Retailer’s
price cost price margin
Carnation 3.00 - 5.00 2.00(67%)

Alstroemeria 1.50 - 2.50 1.00(67%)

Rose 4.00 0.16 6.00 1.84(46%)


Gladioli 4.00 0.16 6.00 1.84(46%)
Margin of retailer in cut flower sale in
Coimbatore
Flower Purchase Marketing Selling Retailer’s
price cost price margin
Carnation 3.00 0.16 4.00 0.84(28%)

Alstroemeria 1.00 0.10 1.50 0.40(40%)

Bouquets 50.00 - 75.00 25.00(50%)


Bouquet 125.00 - 200.00 75(60%)

Bouquet 150.00 - 300.00 150(100%)

Arrangement 500.00 - 1000.00 500 (100%)


Estimated Supply and Demand for
flowers
(Lakh stems)
Cut flower Annual Demand Excess
supply Demand
Carnation 201.15 238.01 36.86 (18%)

Gerbera 10.06 21.98 11.92 (118%)


Lilium 49.50 50.31 0.81 (1.63%)
Rose 31.25 * -
Alstromeria 36.00 39.65 3.65 (10%)

Anthurium 5.60 5.85 0.25 (4%)


Bird of 2.32 2.94 0.62 (27%)
Paradise
Export of cut flowers from India
Sl.No. Year Value (Rs.lakh) Major importing countries

1 1996-97 1808.15 Japan(39), Netherlands(28), UK(8),


USA(8), Germany(7), Singapore(3)
3 1998-99 2511.66 Japan(33), Netherlands(19),
Singapore(6), Australia(6), USA(6),
UK(6), UAE(4), Switzerland(3)

3 2000-01 3909.68 Japan(23), Netherlands(19),


Switzerland(8), Italy(8),
USA(6),Singapore(5), UAE(5)
4 2002-03 4323.38 Japan(49),Netherlands(7), France(7),
Germany(4), Australia(3)

5 2004-05 3611.90 Japan (40), Netherlands (19),UAE(5),


Australia(5), Singapore (4), Italy(4)

6 2005-06 7413.07 Japan, (72) Netherlands(5), UK(2),


USA(3), Australia(2), UAE(3),
Switzerland(1), Italy(1),France(1)
Recent developments in marketing
of cut flowers
• Contract price – carnation, gerbera, lilium, rose,
alstromeria
• Infrastructure park – cold storage, packing etc.
• Value addition – bouquets, pot arrangements, office
arrangements,
• E-marketing – dew drops - online marketing
• IFAB – Online marketing of flowers
• AEZ – Coorg in Karnataka for Anthuriums, Ooty in TN
for carnation, gerbera, Uttaranchal for Gladiolus
Constraints in production and marketing of cut
flowers in Nilgiris

• Quality planting material – bulbs to be imported.


• Flower cultivation is capital intensive – lack of
technical knowledge
• Problems of pests and diseases - botrytis
• Local markets absorb small quantity –
dependence on intermediaries for external
demand
• Credit sales of flowers – payment default
• Absence of specialized packing and transport –
wastage of flowers
• Export of Ooty flowers is not yet a reality
Existing Institutional support for cut flowers in Nilgiris

• Department of Horticulture, Government of Tamil Nadu


• Hill Area Development Programme (HADP) and Central
Sector Schemes through Tamil Nadu Agricultural
University, Ooty
• UPASI Krishi Vigyana Kendra
• Nilgiris Integrated Flori-tech Company Ltd. (NIFCO) -
SHG, women
Future strategy

• Identifying regional specialization pockets


• Expansion of area under floricultural crops
• Supply of quality planting materials by opening
up of public/private plant material multiplication
centre at Ooty itself
• Training growers on production technology
and drying of flowers
• Exploring the possibilities of opening up an
auction centre for cut flowers in Ooty
Developing working models that integrate
production with marketing

• Model 1: Integrating production with


marketing
• Model II : Integrated production with
marketing and value addition-
Establishing a model ‘Flower boutique’
• Establishing Floriculture Infrastructure
Parks (FIP)
• Setting up of e-commerce in cut flower
trade
Polyhouse grown flowers
Flower packing and arrangements
ACKNOWLEDGEMENTS

• Sri. S.J. Chiru, IAS, Project Director, HADP,


Udhagai
• Dr S. D. Shikhamany, Director, IIHR,
Bangalore
• Mr. Shivan, NIFCO Flowers
• Chairman, CPC, IIHR, Bangalore
• Department of Horticulture,
Udhagamandalam and Gudalur
• Producers of cut flowers, Nilgiris district
• Flower Traders in Ooty, Bangalore and
Coimbatore
Thank You