EXPORT OF CUT FLOWERS FROM INDIA ABSTRACT · study. He estimated the cost of cultivation of...

EXPORT OF CUT FLOWERS FROM INDIA

1Dr. R. Geetha,

2 Mrs. N. S. Lissy

1prof & Head, Department Of Commerce With Computer Applications,

Sri Ramakrishna College Of Arts & Science, Coimbatore, Tamil Nadu, India

2assistant Professor, Department Of Commerce (Ca), Vlb Janakiammal College Of Arts And Science (Autonomous),

Coimbatore, Tamil Nadu,India

[email protected],

[email protected]

ABSTRACT:

About two decades back or so, the floriculture was just a pastime of rich people and hobby of

flower lovers, but now it has opened a new vista in agri-business, commercial floriculture. With the

increase in buying capacity of people, the flower lovers have now started buying them from the

markets to beautify their home as well as to adore someone they love simply because they don't have

time and enough space to grow flowers particularly in urban areas and in metropolitan cities.

Flowers, it seems, is the most wanted item in any social occasions for conveying one's status and

aesthetic sense.

Flower is now so indispensable that one may cancel his/her birthday celebration or Yama

may postpone the death of a dying person in case flowers are not available at that time. No nuptial is

performed and honeymoon of a young couple is not consummated till garden fresh rose and or

tuberose with lingering and stupefying aroma is made available. Warm welcome cannot be offered

to VIPs in the public functions without bouquet - flowers are so indispensable! All these, no doubt,

have set flower business on a top gear. One may wonder, the global market on flower is at present,

carrying a business worth 2000 corers US dollar (1992) per annum. India is also having a business

worth R.280 corers in her domestic market (1992-93).

Indian Council of Agriculture Research (ICAR) conducted a survey of assessment on the

possibilities of cut flowers trade in India during 1960-62. An important conclusion was that internal

sales as RS.9.26 Corers worth flower weighing 10,460 tons grown in an area of 4000 hector. Flowers

like Rose, Gladiolus, Tuberose, Chrysanthemum, Aster, Carnation, Orchids, and Marigold are most

popular in cut flower market all over the World.

International Journal of Pure and Applied MathematicsVolume 119 No. 18 2018, 3835-3847ISSN: 1314-3395 (on-line version)url: http://www.acadpubl.eu/hub/Special Issue http://www.acadpubl.eu/hub/

3835

INTRODUCTION

India is an ideal country for floriculture, endowed as it is with salubrious climate,

inexpensive Labour and good sunshine even in the winders. As a result more than 450 kind’s flowers

are grown in India. According to one estimate 65000 hectares of Land is under Floriculture which

include traditional cut-flowers and modern Floriculture. The major flowers growing states in India

are Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra, and west Bengal.

Despite these favourable factors, Floriculture in India has not taken off in a big way.

Entrepreneurs in the field are yet immobile the nuances of growing, packaging and presenting their

products to the international markets 99.5% of cut-flowers exporting from India consists of cut-roses

exports only. The remaining 0.5% consists of orchids and carnation for which the market are almost

shut down today. The study has made to know the pros and cons of cut flower export from India.

Keywords: Cut Flowers, Floriculture

FLORICULTURE

Floriculture is the growing of cut flowers, potted flowering and foliage plants and bedding

plants in greenhouses and/or in fields. There are several thousand different species of flowers and

plants that are grown as commercial crops. Cut flowers include such crops as roses, freesia,

alstromeria and snapdragons. Some of the favourite flowering potted plants that are available year-

round are African violets, orchids, cyclamen and potmums (potted Chrysanthemums)

FLORICULTURE PRODUCTS PRODUCED

Growers who produce crops year-round rely on greenhouses to protect their crops

Floriculture also involves a considerable amount of production that is not greenhouse based, such as

field-grown specialty cut flowers. It includes such products as daffodils, tulips, gladiolus, snap

dragons.

STATEMENT OF PROBLEM

The cut-flowers exporting in India is fast growing a handsome amount of foreign exchange.

There is a fair growth in the demand and supply of cut-flowers in the markets around the world. As

time changes, the people are more concerned with modernism. So this industry in India may look

forward to greater opportunities in the world markets. However, the completion has become serve

now- both domestically and internationally. Infect the entire yield can be exported, since we have

internationally compactable quality. Boy the domestic growing consumption is a big constraint to the

Indian cut-flowers exports; pricing, selling and description are also posing problems.

International Journal of Pure and Applied Mathematics Special Issue

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OBJECTIVES OF THE STUDY

To know the Number of countries in Indian exports of cut-roses.

To study the supply demand for cut-roses around the globe.

To analyses the major problems faced by the Indian exporters of cut-roses.

To study the Future prospects for exporting the cut-roses.

SCOPE OF THE STUDY

Government of India has identified floriculture as sunrise industry and accorded it

100% export oriented status. Owing to steady increase in demand of flower floriculture trade in

agriculture. Hence, commercial floriculture has emerged as Hi-tech activity-taking place under

controlled climatic conditions inside greenhouse. Floriculture in India is being viewed as a high

growth industry.

RESEARCH METHODOLOGY

Period of the study:

The period of study for the study was a course of 3 months.

Study Area

The study is undertaken in Bangalore city, where majority of floriculture units of India are

located.

Data source

Secondary data is used for the study; the required secondary data are collected from company

website, Internet and dailies.

LIMITATIONS OF THE STUDY

The study has been restricted to the city of Bangalore. The inference and findings may not be

totally applicable to the other parts of the country.

REVIEW OF LITERATURE:

Pal B.P. (2001) in his book named “The Rose in India” has comments on Marketing of

rose. He referred that the government undertaking the State Trading Corporation decided to sponsor

a project on the export of cut roses to the Western European market. He says many farmers around

Pune and Nasik have two main centers in Maharashtra for the cultivation of roses for this trade has

found it more profitable to convert their grape and sugarcane holdings in to roses farms. It is an


3837

indication of the diversification of the agriculture. Pune and Nasik both are near to Mumbai airport.

Due to this, there is developed flower market. According to his study, the rose occupies the first

position followed by chrysanthemum and carnation. It observed, that the flower trade in India is a

recent one but it has immense potential of export cut rose from India to European countries during

winter. He pointed roses are being exported from Pune to Middle East countries though in very

limited quantities. Post economic reform, the Government of India, Agricultural and Processed Food

Products Export Development Authority (APEDA), State Trading Corporation of India has given

encouragement and support to floriculture export trade.

Armitrage (2002) in the book named “Introduction to Floriculture”, has contributed

Specialty Cut Flower. He studied various reports and reviewed the production of specialty cut

flower. He concluded that specialty flowers were economical in field but not in the greenhouse. He

studied detailed guidelines concerning cost of production of field grown specialty flower. According

to his observation, any businessperson has ability to make profit. It is depend upon keeping cost of

production down and factors that affect cost included location, size, and managerial skill, and market

channel, time of year and space utilization. Cut flower can be profitable if done efficiently. He

concluded, overall cost might be broken down in to variable costs (cost per crop) and overhead (cost

per acre). The cost per crop was relatively unchanged regard less of size but cost per acre reduced as

acreage increases. He mentions that, variable cost were allocated to individual crop for material that

is fertilizer, seed, plants pots, potting soils and mulch and labour cost including any benefits such as

employee compensation, social security, paid holidays and sick leave, and retirement policies.

Overhead costs, equipment depreciation, interest, repairs, taxes and insurance are incurred whether

crop is grown or not which includes insurance, cost of land, electricity and fuel and management fee.

Garg and Sharma(2014) has worked out economics of marigold in their article “Economics

of Marigold Flower Cultivation in Punjab”. For this study, they choose three major district of

Punjab states i.e. Patiyala, Ludhiana and Amritsar, 12 flower growers were selected. Their result was

in pooled data, gross returns from this crop in one-hectare area were Rs. 97,581.69. He worked out

the cost and returns of marigold.

V. Bhanumathy and K. SitaDev (2014) Analyzes the marketing cost, margins and

producers share in consumers rupee in their research project, “An Economic Study of Marketing

Cost, Margins and Price Spread of Jasmine in Chidambaram Taluka of Cudalove District,

Tamil Nadu”. Chidambaram Taluka selected purposively for the study of marketing aspects of

jasmine based on the area and production of flowers, one block was selected, and similarly five

villages were selected randomly. Sixty farmers growing jasmine flowers were selected by

probability proportionate method from these selected five villages. For collection of information


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pertaining to marketing aspects, 15 commission agents cum wholesalers and 15 retailers were

selected at random.

Mrs. P.P.Trivedi Expert Group (2015) The Ministry of agricultural Government of India

constituted an expert group for the development of floriculture in India in 1989 under the

chairperson of Mrs. P.P.Trivedi, former secretary, Government of India that submitted its report in

July 1989.

Barawkar (2001) studied “Marketing of cut flowers in the Mumbai market” The main

objective of his study was to estimate cost of marketing. He concluded that in the cost of marketing,

share of transportation cost was the maximum followed by commission of intermediaries (15%). In

the winter season, all flowers fetched highest prices due to higher demand. In gerbera flowers only

one channel was active in distribution of flowers, namely producer–wholesaler cum commission

agent–retailer–consumer, whereas for rose, gladiolus and aster three channels in trade of flowers

observed as below-

Tilekar (2016) studied “Price analysis of cut flowers produced around urban areas of

Western Maharashtra”. To estimate cost of marketing and cost of cultivation were objective of his

study. He estimated the cost of cultivation of gerbera, carnation and roses in green house.

Research Gap

After review of some books, articles and theses which of several books are related to

economic aspect of floriculture. However, most of them related to green house floriculture and few

of them related to field cultivation of flower. After review of literature, observed some issues in

general and particular about floriculture, which has given below.

General Observations

o Hi-tech floriculture is recent development in India

o Government given incentives to green house floriculture unit

o Export oriented green house unit have been set–up by entrepreneurs and progressive

farmers.

o Green house floriculture does require higher capital initially.

o Many researchers concluded that green house and field cultivators have been facing

many problems related to production and proper marketing.

o Floriculture business in U.S. Economy has experienced, green house floriculture is

much expensive due to expensive labour, and comparatively field cultivation was

economic.

o Field cultivation of flower do required family labour.


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Particular Observations

1) Average prices received during monsoon season were the lowest while in winter they were the

highest.

2) Cost of production on carnation under green house observed highest as compare to gerbera and

rose.

3) Cost of production on rose under green house observed lowest as compare to gerbera and

carnation.

4) Cost of marketing on gerbera under green house observed highest than the carnation.

5) Out of marketing cost, major cost observed on commission agents, both the loose and cut flowers.

6) In field cultivation, gladiolus observed highly profitable flower as compare to any other flower

crop, but it is capital intensive

7) As a seasonal flower crop, many researchers pointed out marigold observed highly profitable.

After review of past studies, it observed that, floriculture is important as regard to farm income. It

proved by past studies; flower production is getting more earning other than any ordinary crops.

ANALYSIS:

Floriculture in India

State Area (Hact.ares.)

Tamil Nadu

West Bengal

Andhra Pradesh

Maharashtra

Rajasthan

Delhi

Haryana

Karnataka

Madhya Pradesh

Uttar Pradesh

Others

14,194

12,285

5,933

3,356

1,985

1,878

1,540

19,161

1,270

1,000

2,166

Total

64,768


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FLOWER TRADE ACROSS THE WORLD:

World trade on floriculture produces like cut flowers, ornamental plants, flowering plants,

flower seeds and plantlets gaining tremendous momentum. Many countries, particularly the

developed ones, are importing flowers to meet their internal demand. It will be worthwhile to

mention that the annual import figures of some of the largest importers on flowers - USA (232 corers

US dollar) Japan ( 192 corers US $ ), Germany ( 180 corers US $) France (77 Corers Us Dollar) ,

Italy (55.6 Corers US Dollar), Holland (50 Corers US Dollar). The other importers like Switzerland,

Sweden, Denmark, Belgium, Middle-east countries etc. also import a sizable amount of cut flowers.

In recent past, Israel has come up as the biggest grower of flowers, using modern agro-techniques

like glass-house culture, drip irrigation, liquid pesticides & fertilizers application along with drip

irrigation channels, Tissue Culture. It may be mentioned that the roses of Israel adjudged to be the

best in the World.

Via-a-visa such a huge market potential of floriculture produce, India's contribution is not at

all encouraging as its flower export amount to 30 lakh US dollar only, hence India has to do a lot to

exploit this agro-business.

GLOBAL CUT-ROSES PRODUCTION

Few countries according report the area under cultivation of individual protected flower

crops Holland the major producer of cur-roses in the world. Holland alone accounts for 60% of the

entire world production of cut-roses. Holland is cultivating rose’s plants in 898 hectares under

protected environment. Colombia is cultivating 950 hectares they trill behind Holland in production.

All over Europe 2685 hectares of land are under rose plantation. All the Europe nations, morocco

from south Africa ,continent, the United states America, Colombia and Ecuador from South Central

America continent and Japan and Israel from Asian continents are the major India has 100 hectares

of Land devoted to plantation for roses.


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Major Cut Roses Producing And Exporting Countries In The World

Continent Country Area(In hectares)

Europe

Netherland 898

Italy 779

France 452

Spain 316

Germany 240

Africa Morocco 300

Canary Island 155

Kenya 150

Zimbave 125

Zambia 25

Tanzania 25

Uganda 25

South Africa 20

Malawi 5

USA United State of America 440

South/central America

Colombia

950

Ecuador 270

Guatemala 70

Japan 557

Asia

Israel 250

Republic of Korea 159

Malaysia 70

India 100

SOURCE: Agriculture Processed Food Product Export Development Authority.


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GR0WTH IN EXPORT OF CUT ROSES FROM INDIA (2011-2016)

Year Million

2011-2012 7.5

2012-2013 12.4

2013-2014 12.4

2014-2015 14.8

2015-2016 25.0

APEDA (Agriculture Processed Food Product Export Development Authority)

VALUE OF EXPORT FROM INDIA 2011-2016

COUNTRY 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Value Value Value Value Value

USA 7214 5306 5799 7129 8381

NETHERLAND 5987 4218 4527 5752 5970

GERMANY 3966 4065 4332 5413 5675

UK 4284 3788 3530 3856 4560

CANADA 1135 739 811 1472 1619

JAPAN 1791 1559 1234 1203 1567

UAE 992 1071 996 1126 1545

ITALY 1373 814 893 1119 1350

ETHIOPIA 1232 1745 695 991 1232

AUSTRALIA 1074 757 180 812 1074

TOTAL 29048 24062 22997 28873 32973


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VALUE OF EXPORT FROM INDIA 2011-2016

QUANTITY OF EXPORT FORM INDIA 2011-2016

7214

5987

3966

4284

1135

1791 992

1373 1232 1074

29048

USA

NETHERLAND

GERMANY

UK

CANADA

JAPAN

UAE

ITALY

ETHIOPIA

AUSTRALIA

COUNTRY 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Quantity Quantity Quantity

Quantity

Quantity

USA 7111 5871 7430 7559 6697

NETHERLAND 4640 3147 3149 6257 3099

GERMANY 3590 3688 4474 3924 3715

UK 4370 3707 4299 3456 3192

CANADA 782 534 524 737 986

JAPAN 965 971 640 826 801

UAE 763 972 823 817 1029

ITALY 1268 1454 1255 1267 821

ETHIOPIA 163 706 132 356 163

AUSTRALIA 353 345 168 415 353

TOTAL 24005 21395 22894 25614 21156


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QUANTITY OF EXPORT FORM INDIA 2011-2016

SUGGESTIONS

Establish floriculture development areas for domestic use and export.

Strengthen and establish infrastructure for research, training, extension, production

and propagation and post harvest management.

Intensify need-based research on protected cultivation of flowers;

Import Germ-plasma of improved varieties of commercial flowering crops.

Organic training on advance research and production of commercial flowers,

Relax the import policy and customs duties for imports required for green houses

production.

Increase the budget allocation for floriculture by both Central and State Government.

CONCLUSION

India is the ideal place for floriculture , the scope of flower export from India is flourishing. It can be

taken as major export product to generate foreign exchange and the farmers can gain more profit

margins by way of exporting.

7111

4640

3590

4370

782

965 763

1268 163 353

24005

USA

NETHERLAND

GERMANY

UK

CANADA

JAPAN

UAE

ITALY

ETHIOPIA

AUSTRALIA


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REFERENCES

1. Pal. B.P. (2001) “The rose in India Indian council of agricultural research, Krishi.

2. ArmitageAller M. (2002) “Introduction to floriculture Academic press Ltd., Sam Diego

California 92101.

3. Gurg and Sharma (Jan 2014) “Economics of Marigold cultivation in Punjab,

Floriculture Today‟ , –pp39 Volume – IV, issue 1.

4. V.Bhanumathy and K.Sita Devi (2014)“An economic analysis of marketing costs, margins and

price spread of jasmine in Chidambaram taluka of Coddalore district, Tamil Nadu, Indian Journal of

Agricultural Marketing.

5. Barawkar P.S. (2011) “Marketing of cut flowers in Mumbai Market, Thesis submitted to Mahatma

Phule Krishi Vidyapeeth, Rahuri, and Maharashtra.

6. TilekarSr.No. (2016) “Price Analysis of cut flowers, produced around urban area of Western

Maharashtra. Advoc project report – 2001 Mahatma Phule Krishi Vidyapeeth, Rahuri, Maharashtra

(2016).

7. Dr G. Agila , Dhamayanthi Arumugam,” A Study On Effectiveness Of Promotional Strategies At

Prozone Mall With Reference To Visual Merchandising”, International Journal of Innovations in

Scientific and Engineering Research, Vol. 5, Issue .6 , 2018, pp.47-56.


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