Indian Floriculture Industry Present status & scope
the Govt. of India identified floriculture as a sunrise industry and accorded it 100
percent export oriented status. Owing to steady increase in demand of flower floriculture
has become one of the important Commercial trades in Agriculture. Hence commercial
floriculture has emerged as hi-tech activity-taking place under controlled climatic
conditions inside greenhouse. Floriculture products mainly consist of cut flowers, pot
plants, cut foilage, seeds bulbs, tubers, rooted cuttings and dried flowers or leaves. The
important floricultural crops in the international cut flower trade are rose, carnation,
chrysanthemum, gargera, gladious, gypsophila, liastris, nerine, orchids, archilea,
anthuriu, tulip, lilies.
Present status and
growing trade is still in infancy. Floriculture in India, is being viewed as a high growth
Industry. Commercial floriculture is becoming important from the export angle. The
liberalization of industrial and trade policies paved the way for development of export
oriented production of cut flowers. The new seed policy had already made it feasible to
import planting material of international varieties.
The government of
India offers tax benefits to new export oriented floriculture companies in the form of
income-tax holidays and exemption from certain import duties. Agricultural and Processed
Food Products Export Development Authority ( APEDA), responsible for export promotion and
development of floriculture in India, grants subsidies for establishing cold storage,
precooling units, refrigerated vans and green houses, and air freight subsidy to exports.
It has been found that commercial floriculture has higher potential per unit area than
most of the field crops and is therefore a lucrative business.
According to a report
of the APEDA, the total area under flower crops was estimated around 34,000 hectares,
which included 24,000 hectares under traditional flowers such as marigold, jasmine, aster,
rose, chrysanthemum, tuberose and 10,000 hectares under modern flowers like cornation,
rose, gerbera, gladiolous, anthurium.
floricultural products were estimated at Rs.205 Crores, which included Rs.105 Crores from
traditional and Rs. 100 Crores from modern flowers. The data collected by National
(NHB) (1994-95) show
that estimated area and production were 53,000 hectares and 4 lakh tonnes. In 1995-96,
there were mainly 230 export-oriented units in India. More than 50% of the floriculture
units are based in South zone mainly in Karnataka, Andhra Pradesh, Tamil Nadu. Also West
Bengal, Maharashtra, Rajasthan have large areas under floriculture. The domestic flower
production goes on increasing annually. Technical collaborations with foreign companies
have been approved for India, in order to increase total share in the floriculture world
India is endowed
with diverse agro-climatic conditions like good quality soils, suitable climate, abundant
water supply, low labour cost, proximity to market in Japan, Russia, South-East Asia,
Subsidy on airfreight
for export of cut flowers and tissue-cultured plants is allowed by the Government. Freight
rates are Rs.10 per kg for export to Europe and Rs. 6 per Kg for export to West Asia,
SouthEast Asia whichever is less.
Import duties have
been reduced on cut flowers, flower seeds, tissue-cultured plants, etc. Setting up of walk
in type cold storage has been allowed at the International airports for storage of export
Direct subsidy upto 50
percent of the precooling and cold storage units is available, as well as subsidy for
using improved packaging material is given by APEDA.
floriculture centre units and two large centres, 20 tissue culture units have been
established by Ministry of Agriculture.
is available from NABARD to a number of hi-tech units at reasonable interest rate.
In spite of an
abundant and varied production base, Indias export of floricultural product is not
encouraging. The low performance is attributed to many constraints like non-availability
of air space in major airlines, since most of the airline operators prefer heavy
The existing number of
flights during the peak seasons is not sufficient for export purpose.
infra-structural problems like bad interior road, inadequate refrigerated transport and
storage facilities. Lack of professional backup of delivery and supporting companies,
which resort into high cost of technology for Indian entrepreneurs. Tedious Phyto-sanitary
certification and an unorganized domestic market.
In order to overcome
these problems, attention must be focussed on
Reduction in import
duty on planting material and equipment.
Airfreight should be
reduced to a reasonable level. Sufficient cargo space may be provided in airlines.
Establishment of model nurseries far supplying genuine planting material.
organizations should be established at regional level. Training centres for diploma course
on the pattern of ITI for training the personnel in floriculture should be set up.
Exporters should plan
and monitor effective quality control measures right from production to post harvesting,
storage, and transportation. An analysis of strengths, weaknesses, opportunities of the
floricultural industry shows that India has immense potential for export of floricultural
Though the global
floriculture industry is growing comparatively at a faster pace than in India, still a
scope exists to bridge the demand and supply gap.