New Delhi: India is gradually regaining its position as a key exporter of cut flowers, mainly carnation and gladiolus, notwithstanding an appreciating rupee and growing domestic demand.
Industry sources told FE that because of growing demand of traditional flowers in the domestic market during last the few years,
India could not emerge as a big player in the global market. However, subsequently, the industry shifted its focus from traditional flowers to cut flowers for export mainly targeted at European countries, the United States and Japan.
According to latest commerce ministry data, flower exports went up to Rs 65.63 crore during April-February 2008-09 compared with Rs 48.75 crore in the previous fiscal.
A number of firms are being set up for plantation of flowers, especially for the exports purpose, an official at the Agricultural & Processed Food Products Export Development Authority (Apeda) said. “As domestic industry has matured, we are now focussing on value-added or decorative flower for exports,” Asit Tripathy, chairman, Apeda, said.
The government has identified floriculture as a sunrise industry and accorded it a 100% export oriented status.
Owing to steady increase in demand of flower, floriculture has become one of the important commercial trades in agriculture, Tripathy said.
Earlier, most flower exports from India were limited to countries like the United States, the Netherlands, the UK and Japan.
According to the Apeda estimate, the total area under floriculture was estimated to be around 34,000 hectare, which included 24,000 hectares under traditional flowers such as marigold, jasmine, aster, rose, chrysanthemum, tuberose; and 10,000 hectares under modern flowers like carnation, gerbera, gladiolus, anthurium and others.
More than 50% of around 300 floriculture units are based in Karnataka, Andhra Pradesh, Tamil Nadu. West Bengal, Maharashtra and Rajasthan also have large areas under floriculture.
However, S Jafar Naqvi, president, Indian Flower and Ornamental Plants Association (Iflora), said there is still a lot of investment required in floriculture business for expansion of volume. “India is still a small player in the global market, we lack volumes,” Nazvi said.
According to Apeda, exports of floriculture products have declined by a whopping 48.21%, from Rs 652 crore during 2006-07 to Rs 338 crore in 2007-08. Appreciation of the rupee against major currencies and growing domestic market have eroded exporters’ profitability. The domestic flower market has been growing at 25% annually for the last few years.
India’s domestic flower and plant market is estimated to be more than Rs 1,000 crore.
Production of flowers from states such as Maharashtra and West Bengal has stagnated while Karnataka, Gujarat, Jammu & Kashmir, Himachal Pradesh and
Uttarachal have entered the floriculture business in a big way.
For augmenting exports, there is a need for increase in production by diversifying commercial production from traditional areas to non-traditional areas like Jammu & Kashmir, Himachal Pradesh, Uttaranchal and parts of north eastern states
Source : Financial Express