| Tariff import and
flower market
Cut flowers from India face a higher import duty in Europe (13 per cent) during the non-peak market months, that is May-October. During November to April, when Europe requires imported flowers, the tariff is lowered by five to six per cent. The real rate could work out to nearly 17 per cent in non-peak months if one reckons with the fact that tariffs are worked out on FOB plus freight basis. This has prevented Indian floricultural products from having market access during the crucial months in Europe. Given the fact that the prices of the cut roses in Dutch auctions have been falling since 1994, and more so in the May-October period, a higher import tariff during low price seasons will severely constrain our efforts as establishing a steady annual market in Europe across seasons. It is well known that our floriculturists have to resort to distress sales of flowers in the domestic market during non-winter seasons due to higher tariff wall in Europe. A simple, average, across the board reduction would mask the peak tariffs. In the forthcoming negotiations, we may have to argue for more scientific criteria foe reduction on import of tariffs. |
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