Rs 73-cr fund to boost floriculture

The Union commerce ministry plans to spend Rs 73 crore to promote floriculture in the country by creating a separate special floriculture fund and also by offering replanting subsidy to growers.

Speaking after inaugurating a wholesale market-cum-international flower auction centre, Union commerce minister Kamal Nath said floriculture has great importance in rural India for it provides a viable diversification option and income and employment to farmers at their doorstep.

"Keeping employment creation in mind, the commerce ministry has two initiatives, one to create a special floriculture fund of Rs 26 crore to assist sick floriculture units and to continue the transport assistance to exporters to offset the high freight costs, and the second to strengthen floriculture units in key states by offering replanting subsidy of Rs 47 crore in the 11th Plan," he added.

The announcement comes after the minister met the floriculture industry to address problems faced by it.

India's diverse agro-climatic conditions enable the production of different kinds of flowers. "With locational and labour advantage, India's floriculture has the potential to become a significant global player," said Kamal Nath.

According to Agricultural and Processed Food Products Export Development Authority (APEDA) estimates, there are 39 floriculture units in the country of which 16 sick units have been rehabilitated and 18 units are to be revived through the ministry's assistance.

"The special floriculture fund will be utilised to clear the National Horticulture Board (NHB) and commercial banks outstandings and revive transport assistance, which was stopped in 2002," said K S Money, chairman, APEDA.

The International Flower Auction Centre, Bangalore, which was opened on Thursday has been built on 5.11 acres at an investment of Rs 10 crore. While APEDA contributed Rs 3.57 crore, the Karnataka government chipped in with Rs 6.12 crore. The auction centre can accommodate over 100 bidders.

The Indian domestic floriculture market is estimated at Rs 600 crore. The current global market is estimated to be $11 billion and expected to touch $16 billion by 2010.