Poor quality, lack of variety crush flower exports

India’s flower exports have dipped by 48 per cent to Rs 338 crore in FY08, due to scattered farming and the non-adoption of the latest varieties.

According to the official data released recently, export of floricultural products, dominated by cut roses, was Rs 338.01 crore last year compared with Rs 652.69 crore in 2006-07.

Exporters blame the decline on more small producers in the sector being hit by rising input cost. The reluctance to grow latest varieties is another factor that contributed for the decline in exports, they added.

“There are a large number of small farmers in this sector, who are concentrating more on the domestic market as cost of fertiliser has increased,” said Shyamal Adhikari, general manager (export) in a leading flower firm Karuturi Networks.

 

He said small farmers with a production capacity of 8,000-10,000 stems cannot afford to grow latest varieties, which are in demand in the overseas markets because the royalty is very high.

Though the major international breeders are present in India, they charge heavily on royalty, exporters complain and said that this factor dissuades farmers from growing the latest varieties of flowers.

“The quality is also an issue as European market is very particular about the flower quality,” he added.

However, Indian Flower & Ornamental Plants Welfare Association President Jafar Naqvi said the fall in exports should be looked in holistic way as the domestic market has also been growing.

“Since many exporters have shifted their focus to domestic markets, there is opportunity on the export front for the corporates,” Naqvi said.

Siam Floritech of Delhi and Blooming Meadows of Bangalore are concentrating on the domestic market, not on the exports.

“Domestic market is growing at 100 per cent so the export has declined. There is a need for increasing the availability of planting materials to raise production,” Kaushlndra Agarwal of Siam Floritech said.

He added, the domestic market is very promising and his company is focussing on it.

The major chunk of Indian flowers go to Europe and the Middle East, while some quantities also go to Japan, Australia and the US. The major competitors of India in the overseas flower markets include Kenya, Ethiopia and Colombia.