Challenges in Floral Market

In spite of the export potential of the sector, the performance of units in this sector is not encouraging. Some of the challenges that need collective attention are outlined below:

1.

Supply Infrastructure: The success of floriculture sector depends on a

carefully designed infrastructure. The availability of dedicated perishable carriers is low in India and the freight rates are high. Paucity (insufficient) of air cargo space for flowers is also another challenge, especially in the context of airlines preferring to transport relatively less-volume cargo. The production centres are concentrated only where international cargo handling facilities are available and thus much of the production potential is not optimally utilized. Availability of dedicated cold storage facilities at farmyards as also at airports is minimal. In addition, the adequacy levels of cooling facilities in domestic transportation need to be examined in the context of the growing international flower business. 2. Availability of Basic Inputs, Including Seeds and Planting Materials:

The seed and planting material industry in India is relatively not well established. Mostly imported varieties are preferred for exports, for which breeders charge high royalty and thus the cost of planting material becomes high. In addition to non-availability of elite planting material, prevalence of production as well as preservation technology is also relatively low. There is need for increasing the investments in technology that allows a better control over production climate, enhancing of quality and reduction of pollution and waste. 3. Quality Parameters: In the international arena, competition is such that

anything less than the acceptable quality is not tolerated. Quality has several dimensions, viz. free from plagues and diseases and proper physical handlings at various stages of transportation for enhanced vase life. 4. Operation of Economies of Scale: Small unit size of the flower farms in

India is also considered a constraint due to absence in economies of scale. The

average size of Indian farms is approximately 4 ha. as compared to the size of 40 ha. in some African countries. African units are thus able to leverage from their capacities and capture more market- share as a result of the production volumes. Besides being cost competitive, high volume enables them to offer a wide range of colours, in the quantities of batch sizes that international market demands. 5. Diversification of Products: Another challenge for Indian flower exporters

is to diversify and reduce the dependence on producing cut rose alone. 6. Re-Plantation: The floriculture plants in India,majority of them are roses,

are mostly of the older varieties. Also,they are old plants ranging from 7-9 years, whereas the peak productive phase of the plants on an average is only 3 to 5 years. India is estimated to be replanting approximately 25 ha. per annum as compared to 200 ha in some African countries. Only some of the units in India are equipped with the requisite resources for re-plantation. 7. Environmental Issues: Environmental issues have become very prominent

in recent years. Consumers are concerned about the impact of use of chemicals on environment and on the workers. Cut flowers are no exception to such environmental guidelines.

Opportunities in India:
Floriculture as an extreme focus area by the Ministry of Commerce and Industry, Government of India: The sector has acquired a special status in the basket of India and her export commodities. India produces a wide variety of floriculture products, which inter alia include flowers and foliage, both fresh flowers and dried, like roses carnations chrysanthemums and orchids. A major growth has been in the export of cut flowers for export. Schemes like Central scheme "Commercial Floriculture" Ministry of Agriculture Scheme for Export Promotion and Market Development (APEDA) Scheme for Packaging Development (APEDA)

 Scheme for Assistance to Promote Quality and Quality Control (APEDA) Scheme for Infrastructure Development (APEDA) Scheme for Feasibility Studies Surveys Consultancy and Database Upgradation (APEDA) Scheme for Generating Relevant -Research and Development (APEDA) Scheme for Organization Bldg. and HRD (APEDA) The International Flora Expo & Landscape Expo: When we concentrated to 2nd point this is one of the great opportunities to increased floriculture industry in India. This two are most famous floriculture exhibition in India i.e., International flora and landscape Expo this two are the best flat form for Indian exporters to interact with international buyers for cut flowers and also this Indians floriculture exposed the stakeholders to new technologies and scientific advancement. Worlds Fastest Growing Retail Market, Second Largest Consumer base: Indians floriculture is recognise world fastest growing retail market and 2nd largest consumer base, there are unlimited opportunities for growth. As a mention earlier flora expo and landscape expo are the best flat form to interact with flower growers domestically as well as globally to recognise India as flower power. Flower trade has attracted the largest demand from an estimated 300 million middle-class flower-loving people with consumption in the cities and major towns at 40 per cent per annum. Flower retail shops have mushroomed all over the place from major metros to market shops and flower boutiques. Further the supermarket/hypermarket retail chains have fueled the growth in the consumption. Cashing in on this trend, the Minister of State for Commerce also feels that floriculture is all about creating new employment opportunities in far flung areas.

Thanks to the variety of agro climatic zones within, India today is in a unique position to grow a large number of flowers, including temperate flowers in high altitude states. In India, we can now cultivate a wider variety on a commercial basis an impressive range of carnation, gerbera, lilium, orchids, anthurium and many others. Interestingly, we have genetically designed flowers ones with unique shape, petal size, pleasing colours with longer shelf life and of course pleasant fragrance a rose, for instance, that will be "equally attractive to the humans and the bees!" Hence the growth in floriculture cultivation has been phenomenal in the last decade or so and the area under flower cultivation has doubled from 53,000 hectares (1993-94) to 103,000 hectares (2001-02). APEDA has also taken number of measures to facilitate floriculture exports. Besides setting up cold storage and cargo handling facilities at the key airports of New Delhi, Mumbai, Hyderabad, Bangalore, Chennai, Trivandrum and Cochin. :Proposals are under consideration for setting up of such facilities at Goa, Calicut and Coimbatore Airport. Some key Indian airports like New Delhi, Mumbai, Hyderabad, Bangalore, Chennai, Thiruvananthapuram and Cochin now have cold storage and cargo handling facilities. More airports will have these facilities in the future. Among other things, flower Auction Centres are also coming up in Bangalore, Mumbai, Noida, near Delhi, and Kolkata. These are ready made market facilities for trading and price discovery for a variety of flowers, both for export and domestic markets. India has to achieve the ambitious export target of Rs.1,000 crores per annum over the next 5 years, a paradigm shift is required. The key issues that need to be addressed in the Indian context are - Economies of scale, Product range/ Latest varieties, Year round exports, Quality control and Certification, Cold chain management. APEDA has been addressing these issues through various forums on a concerted basis given its mandate to promote floriculture exports from India.

Co relation with DFC (Dubai Flower Center) the trans-shipment facility for perishable goods in the region is gearing up to tap the Indian flower export market. which is expected to exceed $1 billion by 2010. DFC can act as a hub for Indian growers and traders so that they can reach out to regional, European and American markets. A DFC delegation had recently visited India to create awareness about the centre and its unique facilities. During the visit, the delegation met officials in major cities and held discussions with flower growers and exporters. Currently India produces 2,00,000 tonnes of loose flowers and 500 million tonnes of cut flowers according to India's Agricultural and Processed Food Products Export Development Authority (APEDA).