Floriculture_271108

Floriculture

Flower
Power

The floriculture industry in India is witnessing brisk,
25 per cent growth per annum, as growers across the country are
catering to the huge demand for flowers from all over the globe.
Annamma Oommen reports.

51

FLORICULTURE

The Indian floriculture industry, including Australia, Japan, the UK, the the industry has facilitated joint ventures,
growing at a compound annual Netherlands and the UAE. The world’s ensuring a steady inflow of capital and
growth rate (CAGR) of 25 per biggest flower markets include USA modern technology.
cent over the past decade, has ($12.5 billion), Japan ($5.46 billion) and
blossomed into a $230 million business. Italy ($4.27 billion), while the highest Further subsidies have been offered
per capita consumption of flowers is in for air-freight for export of cut-flowers and
While exports remain the prime Norway ($146) followed by Switzerland tissue-cultured plants, and direct subsidy
motivator for cultivators, local demand ($126) and Germany ($88). of up to 50 per cent has been offered
is also growing by leaps and bounds, for establishing cold storage, pre-cooling
especially in cities. Modernisation and While international markets offer a units, refrigerated vans and green houses.
growing western cultural influences has lot of opportunities for Indian exporters, Subsidy is also given by the Agricultural
resulted in consumers – especially the they also face substantial challenges. and Processed Food Products Export
young – buying flowers on occasions like Indian exports of cut-flowers face import Development Authority (APEDA), for using
Valentine’s Day, Friendship day, Mother’s tariffs of up to 17 per cent (calculated on improved packaging material. Refinance
day, Father’s day and so on. Of course, a free on board+freight basis) in Europe assistance is available from the National
there is a huge spurt in demand for between May and October, considered Bank for Agriculture and Rural Develop-
flowers during religious festivities. non-peak months. It’s only when Europe ment (NABARD) to a number of hi-tech
requires imported flowers during the peak units at reasonable interest rates. The
Flower retailing is also undergoing a season that import tariff is reduced by five Union Ministry of Agriculture has also set
change. Many of the new shopping malls to six per cent. up 11 model floriculture centre units, two
and large format retailers have exclusive large centres and 20 tissue culture units.
flower shops that witness demand round- Despite these challenges, the flori-
the-year. culture sector has been doing well. Six agri-export zones have also been
According to sources in the trade, much set up for floriculture where large flower
But many cultivators enter the of the credit for growth of the industry farms share common infrastructural facili-
business with a focus on exports and an should go the governement. Post-liber- ties, thus bringing into effect the benefits
eye on the global industry. Internationally, alisation, the government identified it as of scale. Walk-in cold storages have been
the floriculture business is estimated to a priority sector and accorded it 100 per allowed at international airports like Delhi,
be worth $11 billion and growing at 15 per cent ‘export oriented unit’ (EOU) status. Mumbai Hyderabad, Chennai and Thiru-
cent per annum. The Flower Council of vananthpuram and similar facilities are
Holland projects this would top $16 billion This meant tax exemptions to new expected at other airports soon.
by 2010. India's flower exports have been EOUs and tax holidays on income from
growing by a robust 25 per cent CAGR. It floriculture. Additionally, there were Auction centres are also being set up at
added up to $90 million in 2006-07 and is substantial duty exemptions for imports major cities, helping in price discovery and
projected to touch $160 million by 2010. including cut flowers, flower seeds and trading. In fact, APEDA has even set up a
tissue-cultured plants. Also, allowing 100 Market Facilitation Centre at Aalsmeer, in
Fresh flowers from India have already per cent FDI (foreign direct investment) in the Netherlands, the world’s largest flower
gained entry into nearly 90 countries

52

FLORICULTURE

auction centre. The authority aims to set including Australia, Japan, Britain and Florance Flora, Bangalore, points out
up similar centres in the Middle East and Germany. “The quality of Indian roses is that “India needs to develop indigenous
the Far East in due course, to help Indian good and there is substantial demand in technology as the cultivation of flowers
flower exporters. competitive markets around the world,” he in greenhouses here is dependent on
explains. “We can grow roses round the foreign technology.” But initial investment
Najeeb Ahmed, president of the South year without artificial heating, lighting and is very high, so many growers opt for joint
Indian Floriculture Association, says cooling systems, and there is abundant ventures with international partners.
India's share of the world rose market availability of manpower.”
is still tiny. But the country is making The huge potential for growth for the
its presence felt in several countries S.K. Gutgutia, managing director, floriculture sector has attracted top Indian

In full bloom flower show in the country, attracting India needs to
participants – and buyers – from around develop indigenous
The floriculture business in India is the world. technology as the
expected to get a boost with the cultivation of flowers
government deciding to set up various Pune in Maharashtra has also in greenhouses here
facilities for the trade. Floriculture emerged as a major flower-growing
regional centres, agro export zones region. The city, and some of the is dependent on
for floriculture and flower clusters neighbouring areas, accounts for a third foreign technology.
are being planned in different parts of of flower exports from India. Pune and
the country. Bangalore are the two largest flower corporates. They include Reliance, ITC,
clusters in the country, with about 40 Tata Tea, Bharti Group and the Thapar
Floriculture regional centres are units operating from the two cities. Group. Their plans are being driven by
coming up – or are being planned demand from overseas retailers like
– in cities like Bangalore, Chennai, Indian floriculturists have also been TESCO, Sainsbury, Wal-Mart, Asda, Sears,
Thiruvananthapuram, Pune, Lucknow, makingboldforaysabroad.Ramakrishna Carrefour, Metro and K-Mart.
Mohali, Srinagar, Kolkata and Gangtok. Karuturi, a US-educated entrepreneur,
These centres would not only conserve and founder, Karuturi Global, started International retailers buy in large
important varieties of flowers of the a 100 per cent EOU in Bangalore in volumes, so scale of operations and quality
region, but would also encourage 1995. He also launched Rose Bazaar. control will be of paramount importance.
large-scale multiplication. com, an internet auction portal, a few This is encouraging domestic corporates
years later. to enter the sector. “Floriculture in India
The National Horticulture Mission is becoming an attractive, commer-
aims to promote half a dozen agro Today, the company is not only the cially viable diversification option,” says
export zones and flower clusters to biggest producer of roses in India, but industry expert S. Jafar Naqvi. “Several
encourage floriculture and the export is a global leader in cut rose production companies involved in agro business are
of flowers. About 150 export oriented and has expanded abroad, setting up a set to venture into this sector.” Some
units are being set up in and around presence in Ethiopia. of the smaller players are looking for
the major floriculture hubs including innovative methods to take advantage of
Pune, Chandigarh, Bangalore, Delhi Karuturi Global today manages benefits that scale and size provides, by
and Hyderabad. 220 hectares of rose farms in India, forming cooperative societies. By doing
Ethiopia and Kenya and is adding 450 so, they hope to collectively buy farming
The Agricultural and Processed hectares in Ethiopia. This year, the materials, fertilisers and other supplies as
Foods Export Development Authority company will produce 650 million a single entity helping them drive down
(APEDA) has set up half a dozen stems and by 2010, hopes to cross the costs through bulk purchases. With corpo-
agro export zones in Maharashtra, one billion-mark. rate players getting in on the action, and
Sikkim, Tamil Nadu, Uttarakhand and smaller players consolidating their efforts,
Karnataka. It has also set up export Karuturi, who raised $250 million India’s floriculture sector can expect to
facilitation centres in the Netherlands, recently to acquire additional land in blossom over the coming years.
Dubai and Tokyo, and plans flower Ethiopia, also acquired a Dutch firm for
auction centres in Mumbai, Bangalore, $70 million last year.
Kolkata and Noida.
The huge growth opportunities in
At present, over half the floriculture the floriculture business in India will
units are located in south India. Kochi see the blossoming of many more
in Kerala, for instance, recently hosted such entrepreneurs, cultivating both
the first international anthurium cut- on domestic and foreign soil.

53