The floriculture industry
industry comprises of:
trade of traditional and contemporary cut flowers and cut foilage, both fresh and dried
and value-added products like bouquets, floral baskets, flower arrangements and garlands.
nursery for propagation and supply of plant material including tissue culture plants,
seeds, bulbs, corms and other propagated material.
service for supply of house plants on annual rent for a specific period.
The area under
flower crops is around 53,000 acre. Of the total area more than half is under traditional
crops jasmine, scented rose, small flowered chrysanthemum, tuberose, crossandra and aster.
The annual growth rate of domestic trade in floriculture products is estimated to be
flowers in the southern States is much higher than in the northern States. During the last
few years there has been drastic change in flower trade of modern flowers in Bombay, Pune,
Bangalore, Chennai, Hyderabad, Delhi, Chandigarh, Lucknow and Calcutta.
A major growth, of
course, has been in the production of cut flowers for exports. More than 150
export-oriented units (EQUs) have been approved by the Government and are coming up in
different parts of the country, particularly around Pune, Chandigarh, Bangalore, Delhi and
Hyderabad. Some of them have started in full production and have started exporting their
products. A majority of these are being set up with the collaboration of foreign
technology and infrastructural support. A modest estimate of investment made in this
sector is around Rs.1,500 crores so far, of which Rs.55 crores is in foreign investment
(as up to June 1995). All this growth is a recent phenomenon following introduction of
economic liberalisation in 1991, which makes the growth look quite significant.
A few of the
general bottlenecks associated with the development of floriculture industry in India are
At present, the
cultivation of flowers in greenhouses is dependent on foreign technology, as we are yet to
establish our indigenous technology. The initial investment is, therefore, very high. Even
the equipments are required to be imported.
highly perishable in nature and therefore when grown in a controlled environment, they
need to be transported in similar conditions to maintain their quality and freshness. For
this, refrigerated vans for road transport and adequate warehousing space at airport till
they are loaded in the aircraft, are required. There is dearth of warehousing space at the
Cut flowers are
to be stored at a temperature of 2-4 degree centigrade even during transit in air cargo.
Limited availability of cargo space in planes for the bulky products like flowers is a
drawback. The certification procedures related to phytosanitary and custom formalities are
tedious. There is no direct air service from India to flower marketing areas like
Amsterdam,Copenhagen, etc. This results in inordinate delay in sending consignments to
High air freight
in our country and inadequate cargo space for flowers are the twin problems to be sorted
out with Air India. Incidentally, peak season for flowers, i.e. December to February,
coincides with that of garment exports from India.
The growers do
not get sufficient information about export market trends, demands, prices, consumer
cost of flowers by exporters is very high due to low productivity and high transport
charges. The production units are small and scattered and there are no proper linkages
between producers, processors and exporters.
a capital-intensive industry with long gestation period. For example, the cost of grading
centre is Rs.6.5 lakh, a good refrigerated van may cost Rs.5 lakh and pre-cooling unit
around Rs.5.5 lakh. Per hectare capital cost would be Rs.1.75 crore to Rs.2.25 crore.
Availability of adequate finance is a problem.
Steps taken by
Government to increase Flower Export:
of India is working hard at getting the European Community (EC) to reduce the high rate of
import duty on Indian Cut Flowers. According to Commerce Ministry, the current rate of
import duty is fixed at 20% and 15% according to season.
promote the Floriculture, the commerce Ministry is contemplating duty exemption on the
import of materials for Green House and Tissue Culture Labs considering the huge capital
is also working out a Scheme to impart training to the Farmers and Entrepreneurs.
Setting up of
cold storage unit at International Airports.
is working for an air freight subsidy for export of Cut Flowers and exemption of export
oriented units from requirements of customs bonding.
planning to step up Flower exports to West Asia and make an entry into the market in
Australia and New Zealand.
allowed to sell even upto 50% of their produce in domestic market.
quarantine procedures have been simplified and made easy for the expeditious clearance,
for the import of seeds and planting materials.
for flower Seeds and Tissue Culture materials of Plant origin has been waived.
Import duty on
Floriculture planting material has been reduced from 55% to 10%.
Import duty of
Seed development machineries and specified goods for Green House has been brought down
from 136% to 25%.
Import duty on
pre-cooling units and refrigerated transport units has been reduced to 25%.
units can avail of the benefits of duty free imports if they export 50% of their
For export of
Tissue Culture Plants, and Cut Flowers by air, subsidy on air freight has been allowed
upto a maximum of 25% of the international freight rate.
Government has plans for setting up model Floriculture Regional Centres at Chennai,
Bangalore,,Trivandrum, Pune, Lucknow, Calcutta, Mohali, Srinagar and Gangtok to conserve
important varieties of masamoth Flower crops of the Region and arrange for large-scale
and demonstration on various aspects of Floriculture and post harvest management.