India: New flower centres and insufficient infrastructure deterrent to floriculture export

The emergence of new global flower centres, high domestic demand, the lack of sufficient infrastructure and rising cost of production have stifled the growth of India's floriculture export which went up by 16% in 2012-13 compared with 23% in the previous year.

The value of flower exports rose Rs 58 crore to Rs 423 crore last year, according to the provisional data of Agricultural and Processed Food Products Export Development Authority (Apeda). Significantly, the growth in exports to the EU segment, the largest buyer of flowers, has been lower at 9.4%.

India's efforts to establish itself as an important player in the international market in spite of its handicaps have been dealt a blow by the emergence of new flower centres. "New flower centres have come up in Dubai, Tel Aviv and Kunning in China and it is anticipated that flower prices will remain under stress in the coming times," said V K Kaul, deputy general manager, fruits, vegetables and floriculture, Apeda.

Unlike other major suppliers, India has a significant domestic consumption which in a way inhibits its exports. "Around 25% of production from our own farms goes to the domestic market. In fact, the local market is more remunerative in certain months like May," said K Venkat Rao, director of Iris Biotech, a Bangalore-based flower exporting company.

African countries like Kenya and Ethiopia are the leading players in the global market and cultivate flowers in large farms extending to 20 acres or more. In contrast, farms in India are of smaller sizes. "Both countries enjoy duty-free access to the European market which acts as a deterrent to the Indian flower export industry," Kaul pointed out. In fact, a slight decline in production in Kenya helped boost Indian flower exports last year.

The lack of sufficient infrastructure and the rising cost of production are impeding production in India. "While water availability is a problem, the cost of labour and land has gone up,'' Rao added. These factors also affect the quality of flowers exported. The floriculture industry is now focusing on building state-of-the-art infrastructure facilities to boost the export. India's exports comprise roses followed by carnations, gladiolus, marigold, jasmine, tuberoses, orchids and chrysanthemums. Karnataka, Maharashtra, Tamil Nadu and Andhra Pradesh are the major production states.

Source: economictimes.indiatimes.com