Demand and supply for flowers

Both the supply and the demand for flowers in India are highly seasonal. Flower prices fluctuate daily, price differentials exist between markets and with in markets over the year. The variation in prices between markets can be explained by supply (whether the local conditions permit flower production or if they must be transported from production centres far away) and the demand for flowers.

Demand for flowers

The demand for flowers is also seasonal as it is in most countries. The demand for flowers has two components: a steady component and a seasonal component. The seasonal demand for particular traditional flowers for religion purposes and ceremonies often matches seasonal availability. The factors which influence the demand are to some extent different for traditional and modern flowers and for flowers used as inputs in industries.

Traditional Flowers

The steady demand for traditional flowers comes from the use of flowers for religious purposes, personal adornment, and decoration of homes. This demand is particularly strong in the Southern states and West Bengal, as the use of flowers is part of the local culture. The seasonal demand comes from two sources: religion festivals and marriages. The demand is generally for specific flowers.

Modern Flowers

The demand for modern flowers also has two components, namely a steady component and a seasonal component. The bulk of the steady demand comes from institutions. The demand is concentrated in urban areas. Although income plays an important role in generating this demand, Westernisation is crucial. The demand for modern flowers from the consumers (individuals) is likely to grow enormously as the occasions which call for flower giving will continue to present themselves.

Although there is an increasing demand for modern flowers from individuals or households, institutions continue to be the dominant buyers in the market. In Delhi, foreign nationals and the diplomatic community further increase the demand for flowers.

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