International auction centre may boost sale of traditional flowers

The electronic auction centre commissioned by the International Flower Auction Bangalore (IFAB) Ltd here today is likely to boost the sale of traditional flowers like marigold, jasmine and tuberose at the national level.

IFAB is a public-private partnership company set up by the South Indian Floriculture Association (SIFA), small growers and the Karnataka government.

"All these years, the sale and trade of traditional flowers was limited only to Bangalore or a few flower-growing centres in the state. Now, the commissioning of the auction centre is likely to facilitate nationwide sales," said K V Sarvesh, Managing Director, IFAB.

"Small and marginal farmers in the state, who cultivate traditional flowers, are likely to be the biggest beneficiaries along with the big farmers who are into cut flowers," he added.

IFAB expects the volume to go up substantially from the present trade volume of 100,000 stems of cut flowers like Dutch roses, carnation, gerbera, anthurium, limonium per day and a substantial quantity of traditional flowers.

The auction centre so far has 40 registered traders and a few temporary traders who are active during festivals and the wedding season. "Now with the electronic auction centre, more traders or bidders can be accommodated and auctions can be held continuously in a shift system," said Sarvesh.

International Flower Auction Centre, Bangalore, has been built on 5.11 acres with modern facilities. The cost of the project is about Rs 10 crore. The Agricultural and Processed Food Products Export Development Authority (APEDA) contributed Rs 3.57 crore, Government of Karnataka through the Karnataka Agro Industries Corporation (KAIC) land transfer contributed Rs 6.12 crore and the balance has been raised by SIFA and small growers.

"APEDA is planning to give additional assistance to set up common facility in IFAB to help small growers procure various inputs at lower cost," said R Ravindra, general manager, APEDA.

Since the state has 20,000 hectares under flowers, IFAB has taken the initiative to 'market' the centre in Karnataka as well in other south Indian states.

"Along with a few floriculture units in Andhra Pradesh, Tamil Nadu, a few carnation and anthurium growers from Sikkim have shown interest in participating," said Sarvesh.

Speaking on the occasion, R D Reddy of Meghana Floritech said, "We plan to promote the IFAB as a hub for international flower auction. As a step towards achieving this, we have floated a tender to install an auction clock (which works on diminishing rates and buyers can choose and stop the clock at the desired rate) in Bangalore and it may take 6 months to 8 months."

"IFAB has also begun to mobilise funds required for installing the auction clock. A sum of Rs 1.75 crore has been promised under the Aside scheme. When this clock is installed it will facilitates the direct grower-buyer sale, hence improving price realisation," he added.