PEOPLE AND THEIR PROBLEMS

New Delhi, 7 January 2006

Indian Floriculture Industry

CHALLENGES AND OPPORTUNITIES  

By Radhakrishna Rao

While both the IT (Information Technology) and biotech industry in India have become a major contributor to the process of wealth creation and employment generation in the country, the high-tech floriculture continues to lag behind  in sofaras  emerging as the sunrise sector of the Indian economy is concerned. Indeed, in the race to export multi-hued and gorgeously patterned flowers, India continues to lag behind many third world countries, including Israel, Kenya and Colombia. However, with the demand for Indian cut flowers and floriculture products set to go up with the improved quality standard adopted by the Indian growers, Indian exporters are now concentrating on developing cut flowers of larger size and with improved vase life.

“Indian flower exports though small are growing at an encouraging pace. As against the earning of Rs.432.3-million in 2002-03, they totaled Rs.457.4-million in 2003-04; according to sources in Agriculture and Processed Food Products Export Authority. The setting up of a global floriculture logistics hub in the Gulf city state of Dubai is expected to give a big boost to the Indian flower export enterprise.

Currently, the multi billion dollar global trade in flower products is concentrated in Netherlands. By routing the floricultural consignments through tax free Dubai, Indian suppliers would be in a position to cut money and time off the delivery chain. But the sources in Dubai floriculture hub insist that it is not seeking to take away business from Netherlands. This centre it is hoped will open up new routes for perishable goods between Africa and Asia.

In India, around 60,000-hectares are under flower cultivation. Because of its salubrious climate, diverse agroclimatic conditions, sunshine in winter, fertile soil and a rich genetic base as well a skilled labour force that comes cheap, India is ideally placed for the export oriented high tech floricultural industry.

Incidentally, Indian farmers grow more than 60 varieties against 168 rose varieties that are grown across the world, .Cut roses, gerbera and gladiolus are the three flowers that  rank top in exports. Though anthuriums too are gaining in importance, their production in India is quite low. As it is, India’s current share of flower export is less than one per cent of the international trade.

The state of Karnataka is the largest exporter of cut flowers and high quality floricultural products in the country. India’s only flowers auction centre, considered the second largest auction centre in the world, is located in Bangalore. The centre currently known as International Flower Auction Bangalore (IFAB) has given a big boost to the flower export from India.

A spokesman of IFAB sys, “internet auction facility will be available at the centre to determine the international market trends. Besides, they will also facilitate overseas bidders to participate in the auction”.  This flower auction centre is equipped with cold storage facilities and will provide consultancy services to the growers. On the other hand the Talegaon Floriculture Park in Maharastra houses 150 floricultural units.

Meanwhile, almost unnoticed by the rest of the country, the state of West Bengal  has emerged as a major exporter of floricultural products .Around 9,000 flower stems  are being sent to  Holland from West Bengal each week. The dynamic flower exporters from West Bengal are also looking at exploiting the potentials of Dubai floricultural hub. Flowers meant for export are mainly grown in the hilly Darjeeling, and in parts of the districts of North 24 Paraganas, Howrah and East Midnapore. The West Bengal Food Processing and Horticulture Development Corporation is getting orders from private parties based in London and New Jersey for the supply of Lotus and Marigold .These flowers are used by the expatriate Indians during the Hindu festivals.

While Thailand has been able to forge ahead with the export of a variety of orchids, Indian floricultural industry has not focused much attention on this flower variety found in abundance in the Western Ghats and north eastern parts of India .Because orchids  have a long shelf life in comparison to other flower varieties,  Indian can stand to gain substantially by taking to large scale export of orchids.

All said and done, the biggest drawback associated with the Indian floricultural export drive is India’s glaring failure to meet the international market’s primary requirement of pristine condition and timely delivery of flowers due to the lack of infrastructural facilities and an inefficient supply chain management. Clearly and apparently, the most important requirement of the floricultural industry is the maintenance of cold chain for keeping the flowers fresh. While Bangalore airport has already a cold chain meant exclusively for use by the exporters of rapidly perishable floricultural products, efforts are on set up similar cold chains in other airports in the country.

There are now around 200 export oriented floricultural units in India. Today Indian cut flowers are regularly exported to countries in West Europe, West Asia, North America, New Zealand and Singapore. In recent years Australia and Japan have emerged as favoured destinations for Indian cut flowers. The introduction of direct flights from  Bangalore to various parts of the world has given a big boost to the export of cut flowers from this “garden city”. About 200 acres in and around Bangalore are under high tech flower production.

According to Dr. George Eapen, a leading biotechnologist, “India can be major player in the world floricultural market due to the availability manpower at a relatively low cost”. Two major constraints facing the Indian floricultural sector are the poor availability of institutional finance and difficulties in securing high quality planting and seeding materials. But then with vigorous efforts made by the various organizations towards improving the lot of the floriculture sector in India, the country can surely afford to look towards a “colorful and multihued” export future.

A study by Tata Economic Consultancy Services says that the floriculturists should be allowed to repay their loans over a period of ten years Floriculture industry sources in India point out that the high rate of sickness of India’s floricultural sector is due to the fact that many of these units had failed to do proper homework before launching their  venture.---INFA

 (Copyright, India News and Feature Alliance)