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W
ith the declaration of “Floriculture” as an extreme focus area by the Ministry
of Commerce & Industry, Government of India, the sector has acquired a
special status in the basket of India’s export commodities. The sector is still
in a nascent stage of development and accounts for a negligible share in the global
exports. However, the sector has attracted attention of the major giants from both
within the country and overseas market. As a result, over the years, there has been a
mushroom growth of floricultural units in the country. The industry thus offers
tremendous potential for boosting exports of floriculture and floriculture products and
the same are set to make a breakthrough in the near future.
 2

India produces a wide variety of floricultural products which inter alia include flowers
both fresh and dried: roses, carnations, orchids, chrysanthemums, etc, foliage of
plants, potted and nursery plants, bulbs and seeds, tubers, rooted cuttings, leaves,
micro propagation material and extraction of oils from flowers.

A major growth in the country has been in the production of cut flowers for exports.
More than 150 export-oriented units have been approved by
the Government of India and are coming up in
different parts of the country, particularly
around Pune, Chandigarh,
Bangalore, Delhi and
Hyderabad. A majority of these
are being set up with
collaboration of foreign
technology and infrastructure
support.

Cultivation of floriculture is concentrated mainly in the

states of Karnataka, Tamil Nadu, Andhra Pradesh, West Bengal, Maharashtra,
Rajasthan, Uttar Pradesh, Delhi and Haryana.

The Agricultural and Processed Food Products Development Authority (APEDA) over
the years has been playing an important role in the export promotion and
development of floriculture and floriculture products. Growers/exporters are provided
assistance under its various schemes for making improvement in packaging, quality
upgradation, creation of infrastructures, etc.

World Trade Scenario

World trade in floriculture is estimated at $100 billion. It has reportedly been growing
at the rate of 15 per cent annum. Developed countries account for more than 90 per
cent of the total world trade in floriculture products. European countries, Japan and
United States are the major importers of floricultural products. On the export side,
Netherlands continues to be the world leader in the export of floricultural products.
Italy, USA and Israel are the other major exporting countries.
 3

Recent export promotion measures

Ever since the setting up of an Expert Group on Floricultural Development by the

Government of India in 1989, several steps have been initiated for the speedy
development of the sector. Some of the major steps taken in this direction are as
under:

(i) Recent initiatives taken by

APEDA to boost export of
floriculture: The Agriculture
and Processed Food Export
Development Authority
(APEDA) has been designated
as the nodal agency for export
promotion and development
activities relating to floriculture.
It has recently taken several steps to boost export of floriculture products so as to
achieve an export target of Rs. 1,000 crore within five years. Some of the major
ones in this direction inter alia include:
(i) Commissioning of Indian Institute of Packaging for standardizing export packing
used for floriculture export items;
(ii) Visits of Indian Delegations to Netherland,
(iii) Finalization of a host of joint ventures with prominent foreign companies;
(iv) Visit of Dutch Delegations to India for finalizing joint ventures on protected
cultivation techniques i.e. the practice of growing plants in green houses as is done
in European countries and in the area of refrigeration marketing and propagation of
planting;
(v) Setting up of integrated facilities for handling and storage of exportable
perishable products like floricultural products cargo at International Airports in
Mumbai, Delhi, Chennai, Bangalore, Hyderabad and Thiruvananthapuram;
(vi) Setting up of market cum auction centers for exports at Bangalore, Mumbai and
NOIDA.
(vii) Setting up of a Market Facilitation Centre in Aalsameer, Netherlands.
(viii) Setting up of Export Processing Zones for floriculture products in Tamil Nadu,
Uttaranchal, Maharashtra, Karnataka and Sikkim.
 4

(ii) Liberalized Govt. policies to promote

floriculture products: The liberalized policies
of the government both at the center and state
level have resulted in a mushroom growth of
floricultural units in the country over the years.
Some of the recent policy initiatives taken
include: (i) Setting up of an exclusive agri-
export zone for floricultural units in
Bangalore, and (ii) According approval for
setting up of 100% export oriented units by the
Govt. of India. to about 191 units. Of this, it has been
reported that 70 100% EoUs units are operational. As a result,
a large number of reputed companies have set up 100% export
oriented units in the area of floriculture. Besides, there is a full-fledged
Department of Floriculture in the Ministry of Agriculture which has been making all
out efforts to increase area and production of floricultural produce from the country.
About 34,000 hectares are reportedly under the cultivation of floriculture in the
country. The bulk of the area lies in the Southern states like Tamil Nadu, Karnataka
and Andhra Pradesh.

(iii) Karuturi sets up Floriculture unit in Ethiopia: A news story

under the caption “Africa Promises Bed of Roses for Floriculture
Sector” said that Karuturi Networks, a Bangalore-based
company having its Floriculture Division has set up a 50
hectare floriculture unit at Holeta near Addis Ababa and is in
the process of adding 50 hectares more. A few more Indian
companies including Pushpam Florabase Pvt. Ltd are in the
process of setting up their floriculture operations in Ethiopia.
The Ethiopian Government, it says, offers large tracts of land for
floriculture companies on a perpetual long-lease at very attractive
rentals. Ethiopia offers ideal climatic conditions that help in producing
premium grade roses and command a significant premium compared to the Indian
roses. Though Ethiopia offers no fiscal incentives, growers can avail themselves of
funds at a low rate of interest from the World Bank-assisted Fund which has
earmarked around US$350 million for the development of floriculture in Ethiopia.
 5

(v) New Foreign Trade Policy (FTP): Under the new FTP (2004-09) announced by
the Ministry of Commerce & Industry, Government of India, a host of incentives have
been given to boost agri-exports. These inter alia include (i) duty-free import of
capital goods under the Export Promotion Capital Goods (EPCG) scheme, (ii) Duty
credit scrip equivalent to 5 per cent of the f.o.b. value of exports, and (iii) Launching
of Vishesh Krishi Upaj Yojana which is aimed at promoting agri-exports, viz. ,
flowers, vegetables, fruits, minor forest produce, etc.

(vi) Exemption from Import Duty: The Govt. has fully exempted import duty on
ornamental plants, tubers and bulbs of flowers, cutting of saplings of flower plants
used for the purpose of sowing and planting.

(vii) Entry of Large Units: To meet the burgeoning demand for floricultural products
both in the domestic and overseas markets, a host of major Indian companies have
entered this sector. Prominent among them comprise RPG Group, Harrison
Malayalam, Oriental Floriculture, a Tata company. These companies have started
commercial production of roses with technical and marketing tie-ups mainly with most
of the Dutch companies.

(viii) Air freight subsidy: In a move to make export of floricultural products more
competitive in the international market, the Government has decided to grant air
freight subsidy on cut flowers (HS Code: 06.03.1000). The scheme is being
implemented by APEDA.

India's Exports

(i) India’s Exports—Segment wise:

India’s exports of floriculture and
floriculture products in 2004-05, as
may be seen from Table 1,
registered a decline of 15.07 per cent
over the previous year when the same
nosedived to Rs. 212.70 crore as against Rs. 250.45
crore in the previous year. “Cut flowers & flower buds suitable for
bouquets/ornamental purposes, fresh, dried, dyed, bleached,
 6

impregnated, otherwise prepared” emerged as the largest segment of

exports in 2004-05, accounting for a share of 44.65 per cent of India’s
total exports of floriculture products. However, this segment also
registered a negative growth of 14.50 per cent during the period. A close
analysis of segment wise exports reveals that “Foliage branches and
other plant parts, grasses, moses and lichens for bouquets/ornamental
purposes, fresh, dried, dyed, bleached, impregnated, otherwise prepared”
which happened to be the largest segment of exports in 2003-04 slipped
to second place and showed a negative growth of 19.11 per cent when its
exports stooped to a level of Rs. 92.33 crore from Rs. 114.14 crore during
the period. On the other the segments “Other live plants (incl. roots)
cuttings and slips, mushroom spawn” and “Bulbs, tubers, tuberous roots,
corms, crowns & rhizomes, dormant, in growth/in flower , chicory plants &
roots excluding roots of HS Code 1212” showed a marginal growth of 0.64
per cent and 0.91 per cent respectively during the period
.
TABLE I

CATEGORYWISE INDIA’S EXPORTS OF FLORICULTURAL PRODUCTS DURING

THE PERIOD 2001-02 AND 2004-05
(Rs. crore)
HS Item 2001- 2002- 2003 2004- %growth
Code 02 03 -04 05 in 2004-05
over 2003-
04
06.03 Cut flowers & flower buds 19.84 59.55 111. 94.96 (-)14.50
suitable for 07
bouquets/ornamental
purposes, fresh, dried,
dyed, bleached,
impregnated, otherwise
prepared
06.04 Foilage branches & other 89.95 101.3 114. 92.33 (-)19.11
plant parts, grasses, 8 14
moses & lichens for
bouquets/ornamental
purposes, fresh, dried,
dyed, bleached,
impregnated, otherwise
prepared
06.02 Other live plants (incl. 14.02 16.40 21.9 22.08 0.64
roots) cuttings and slips, 4
mushroom spawn
06.01 Bulbs, tubers, tuberous 3.62 3.46 3.30 3.33 0.91
 7

roots, corms, crowns &

rhizomes, dormant, in
growth/in flower , chicory
plants & roots excluding
roots of HS Code 1212

TOTAL (ALL INDIA) 127.4 180.7 250. 212.70 (-)15.07

3 9 45

Source: Compiled from the data of DGCI&S, “Monthly Statistics of India’s

Foreign Trade: Exports &Re-Exports”, March 2002, 2003, 2004 and 2005
issues, Kolkata.

Detailed item wise data on exports of floricultural products during the period
2001-02 and 2004-05 appear at Annexure I.

(ii) India’s Exports---Country wise: A glance at Table 2 reveals that USA

continues to be the largest market for Indian floriculture products.
However, exports to this market registered a steep decline of 33.57 per
cent in 2004-05
over the previous
year when the
same reached a
level of Rs. 48.75
crore from Rs.
73.39 crore. The
other markets
showing a steep
negative growth
during the period include: Japan (51.69%), Poland (49.41%), France
(34.85%), Singapore (30.61%), Italy (25.76%), New Zealand (25.13%),
Switzerland (22.87%), and Greece (18.02%). On the other, the markets
showing a phenomenal growth during the period comprised: Maldives
(524%), China (479.41%), South Africa (360.53%), Hong Kong 123.53%),
Saudi Arabia (50%), and UAE Belgium each (38.42% each).
 8

TABLE 2
INDIA’S EXPORTS OF FLORICULTURAL PRODUCTS TO MAJOR MARKETS IN
THE YEARS 2003-04 AND 2004-05
(Rs. crore)
Country 2003-04 2004-05 %growth in 2004-05
over 2003-04
USA 73.39 48.75 (-)33.57
Netherland 27.11 26.38 (-)2.69
UK 28.10 25.12 (-)10.61
Germany 21.38 20.57 (-)3.79
Japan 25.48 12.31 (-)51.69
Italy 11.57 8.59 (-)25.76
France 8.15 5.31 (-)34.85
UAE 3.54 4.90 38.42
Belgium 2.54 4.90 38.42
Australia 5.16 4.15 (-)19.57
Austria 1.74 4.14 137.93
China 0.68 3.94 479.41
Poland 6.78 3.43 (-)49.41
Spain 3.33 2.99 (-)10.21
Canada 2.35 2.21 (-)5.96
Sweden 1.73 2.12 22.54
Portugal 1.90 1.83 (-)3.68
South Africa 0.38 1.75 360.53
Singapore 2.45 1.70 (-)30.61
Maldives 0.25 1.56 524.00
Switzerland 1.88 1.45 (-)22.87
New Zealand 1.91 1.43 (-)25.13
Greece 1.72 1.41 (-)18.02
Russia 0.94 1.29 37.23
Hong Kong 0.51 1.14 123.53
Saudi Arabia 0.72 1.08 50.00
TOTAL (ALL 250.45 212.70 (-)15.07
INDIA)
 9

Source: Compiled from the data of DGCI&S, “Foreign Trade Statistics of

India (Principal Commodities & Countries), March 2005, Kolkata

Segment wise exports of floricultural products to major markets during the

period 2001-02 and 2004-05 appear at Annexure II. Segment wise exports of
major floricultural products in the select markets during the period 2003-04
and 2004-05 appear at Annexure III.

Export Prospects

Against the backdrop of India enjoying several

advantages like favourable climatic conditions,
availability of Arable land and skilled manpower, the
country offers a tremendous potential for boosting
floricultural products from the country. For tapping the
potential, there is a need to adopt a coherent export
strategy by initiating suitable measures, especially
providing better and efficient infrastructural facilities. Some of
the measures suggested in this direction include: (i) Cultivation
of floriculture at present is concentrated in the states of Karnataka, Tamil Nadu,
Andhra Pradesh, West Bengal, Maharashtra, Rajasthan, Uttar Pradesh, Delhi and
Haryana.

The Agricultural and Processed Food Products Development Authority (APEDA) over
the years has been playing an important role in the export promotion and
development of floriculture and floriculture products. Growers/exporters are
provided assistance under its various schemes for making improvement in
packaging, quality upgradation, creation of infrastructures, etc. Setting up of more
cold storage facilities at the airports and making availability of a fleet of refrigerated
vans for handling flowers from production units to airports; (ii) Greater participation
in the specialized international trade fairs in floriculture; (iii) Diversifying product
range of flowers as presently roses constitute main item of exports, (iv) Making
improvements in the quality of the flowers; (v) Better supply chain; and (vi) Setting up
of more flower auction centers.
 10

ANNEXURE I

ITEMSWISE INDIA’S EXPORTS OF FLORICULTURE AND FLORICULTURAL

PRODUCTS DURNG THE PERIOD 2001-02 AND 2004-05

(Rs. crore)
Hs Code Item 2001- 2002- 2003- 2004- % growth
02 03 04 05 in 2004-
045 over
2003-04
06.04.9900 Foliage branches etc, not 19.38 58.08 108.71 91.60 (-)15.74
fresh without flower buds
& grasses suitable for
bouquets/ornamental
purposes excluding fresh
06.03.9000 Other cut flowers & flower 51.96 58.15 68.40 59.61 (-)12.85
buds suitable for
bouquets for ornamental
purposes
06.03.1000 Cut flowers & flower buds 37.99 43.23 45.74 38.35 (-)16.16
suitable for bouquets or
ornamental purposes,
fresh
06.02.9030 Plant for tissue culture 7.63 11.51 17.59 13.77 (-)21.72
06.02.9090 Other live plants 4.31 2.22 2.21 4.67 111.31
06.01.1000 Bulbs, tubers, tuberous 2.56 2.17 1.28 1.54 20.31
roots, corms, crown &
rhizomes, dormant
06.02.2090 Other trees, shrubs - - 0.33 1.11 236.36
&bush grafted not
06.02.9010 Mushroom spawn 0.01 0.15 0.40 1.00 150.00
06.01.2090 Other bulbs, tubers, 0.49 0.40 0.53 0.80 50.94
tuberous roots, etc
06.02.1000 Uprooted cuttings & slips 1.25 1.13 0.38 0.68 78.95
of live plants
06.01.2021 Chicory plants - - 0.57 0.50 (-)12.28
 11

06.04.9100 Other foliage branches 0.45 - 2.36 0.42 (-82.20

etc, fresh without
flowers/buds & grasses
for bouquets/ornamental
purposes, fresh
06.01.2010 Bulbs horticultural 0.57 0.15 0.90 0.40 (-)55.56
Hs Code Item 2001- 2002- 2003- 2004- % growth
02 03 04 05 in 2004-
045 over
2003-04
06.02.4000 Roses grafted or not 0.69 0.27 0.36 0.20 (-)44.44
06.02.2020 Cactus 0.01 - 0.03 0.11 266.67
06.01.2022 Chicory roots - - 0.02 0.09 350.00
TOTAL (ALL INDIA) 127.43 180.79 250.45 212.70 15.07

Source: Compiled from the data of DGCI&S, “Monthly Statistics of India’s Foreign
Trade" March 2002, 2003 and 2004, and 2005 issues, Kolkata.

ANNEXURE II

INDIA’S EXPORTS OF MAJOR FLORICULTURE AND FLORICULTURAL

PRODUCTS TO IMPORTANT MARKETS DURING THE PERIOD 2001-02 AND
2004-05
Rs. crore)
H.S. Code Item/country 2001- 2002- 2003- 2004- %growth
02 03 04 05 in 2004-05
over 2003-
04
06.04.9900 Foliage branches etc, not
fresh without flower buds
& grasses suitable for
bouquets/ornamental
purposes excluding fresh
USA 7.52 24.28 36.06 27.96 (-)22.46
UK 2.72 6.62 15.59 13.67 (-)12.32
Germany 3.33 8.13 1.66 12.50 653.01
 12

Netherland 1.39 3.05 6.94 7.73 11.38

Italy 0.75 2.72 6.96 3.71 (-)46.70
Austria 0.18 0.43 1.55 3.10 100.00
Belgium 0.03 1.53 1.71 2.99 74.85
France 0.44 1.48 3.73 2.79 (-)25.20
Poland 0.55 2.03 5.00 2.62 (-)47.60
Spain 0.74 1.13 2.53 2.16 (-)14.62
Canada - 0.64 1.37 1.24 (-)9.49
Sweden 0.12 0.45 1.33 1.22 (-)8.27
Portugal 0.06 0.14 1.07 1.11 3.74
Japan - 0.41 1.21 0.48 (-)60.33
Israel 0.11 0.32 1.12 0.29 (-)74.11
Total (incl. Others) 19.38 58.08 108.71 91.61 (-)15.73

06.03.9000 Other cut flowers &

flower buds suitable for
bouquets for ornamental
purposes
USA 14.03 2057 28.32 17.06 (-)39.76
UK 5.43 6.09 10.26 8.84 (-)13.84
Netherland 8.46 11.41 8.48 6.86 (-)19.10
Germany 6.77 5.20 4.03 6.61 64.02
Italy 3.11 1.51 3.56 3.48 (-)2.25
France 2.38 1.81 2.42 1.93 (-)20.25
Poland 0.25 0.53 1.61 0.07 (-)95.66
Total (incl. Others) 51.96 58.15 68.40 59.61 (-)12.85

Source: Compiled from the data of DGCI&S, “Monthly Statistics of India’s Foreign
Trade: Exports & Re-Exports” March 2002, 2003, 2004, 2005 issues, Kolkata.
 13

ANNEXURE III

INDIA’S EXPORTS OF MAJOR FLORICULTURE PRODUCTS IN SELECT

MARKETS IN 2003-04 AND 2004-05
(Rs. crore)
HS Code Item 2003-04 2004-05 %growth
USA
06.04.9900 Foliage branches etc, not fresh 36.06 27.96 (-)22.46
without flower buds & grasses
suitable for bouquets/ornamental
purposes excluding fresh
06.03.9000 Other cut flowers & flower buds 28.32 17.06 (-)39.76
suitable for bouquets for
ornamental purposes
06.02.9030 Plant for tissue culture 6.95 2.36 (-)66.04
06.03.1000 Cut flowers & flower buds suitable 0.54 0.68 25.93
for bouquets or ornamental
purposes, fresh
06.02.9090 Other live plants 0.24 0.18 (-)25.00
06.01.1000 Bulbs, tubers, tuberous roots, 0.23 0.15 (-)34.78
corms, crown & rhizomes,
dormant
06.01.2021 Chicory plants 0.09 0.12 33.33
Total (incl. others) 73.39 48.75 (-)33.57

NETHERLAND
06.04.9900 Foliage branches etc, not fresh 6.94 7.73 11.38
without flower buds & grasses
suitable for bouquets/ornamental
purposes excluding fresh
06.03.9000 Other cut flowers & flower buds 8.48 6.86 (-)19.10
suitable for bouquets for
ornamental purposes
06.03.1000 Cut flowers & flower buds suitable 3.85 6.76 75.58
for bouquets or ornamental
purposes, fresh
 14

06.02.9030 Plant for tissue culture 5.90 5.41 (-)8.31

06.01.2090 Other bulbs, tubers, tuberous 0.04 0.32 700.00
roots, etc
06.02.9090 Other live plants 0.24 0.13 (-)45.83
Total (incl. others) 27.11 26.38 (-)2.69

HS Code Item 2003-04 2004-05 %growth

UK
06.04.9900 Foliage branches etc, not fresh 15.59 13.67 (-)12.32
without flower buds & grasses
suitable for bouquets/ornamental
purposes excluding fresh
06.03.9000 Other cut flowers & flower buds 10.26 8.84 (-)13.84
suitable for bouquets for
ornamental purposes
06.02.9030 Plant for tissue culture 0.46 1.24 169.57
06.03.1000 Cut flowers & flower buds suitable 1.34 1.15 (-)14.18
for bouquets or ornamental
purposes, fresh
06.02.9090 Other live plants 0.20 0.17 (-)15.00
06.01.1000 Bulbs, tubers, tuberous roots, 0.01 0.11 1000.00
corms, crown & rhizomes,
dormant
06.01.2021 Chicory plants 0.06 0.10 66.67
Total (incl. others) 28.10 25.12 (-)10.61

GERMANY
06.04.9900 Foliage branches etc, not fresh 14.66 12.50 (-)14.73
without flower buds & grasses
suitable for bouquets/ornamental
purposes excluding fresh
06.03.9000 Other cut flowers & flower buds 4.03 6.61 64.02
suitable for bouquets for
 15

ornamental purposes
06.02.9030 Plant for tissue culture 0.73 0.60 (-)17.81
06.03.1000 Cut flowers & flower buds suitable 0.47 1.13 (-)140.43
for bouquets or ornamental
purposes, fresh
06.02.9090 Other live plants 0.32 0.06 (-)81.25
06.01.2021 Chicory plants 0.02 - -
Total (incl. others) 21.38 20.57 (-)3.79

JAPAN
06.03.1000 Cut flowers & flower buds suitable 2.34 14.18 505.98
for bouquets or ornamental
purposes, fresh
06.04.9900 Foliage branches etc, not fresh 1.21 0.48 (-)60.33
without flower buds & grasses
suitable for bouquets/ornamental
purposes excluding fresh
06.02.9030 Plant for tissue culture 0.14 0.31 121.43
06.01.1000 Plant for tissue culture 0.16 0.31 93.75
06.03.9000 Other cut flowers & flower buds 0.28 0.21 (-)25.00
suitable for bouquets for
ornamental purposes
06.01.2021 Chicory plants 0.01 0.05 400.00

HS Code Item 2003-04 2004-05 %growth

06.02.9090 Other live plants 0.03 0.04 33.33
Total (incl. others) 25.48 12.31 (-)51.69
TOTAL (ALL INDIA) 250.45 212.70 (-)15.07
Source: Compiled from the data of DGCI&S, “Monthly Statistics of India’s Foreign
Trade: Exports & Re-Exports” March 2004 and 2005 issues, Kolkata.

# G.P. Gandhi
Formerly with the Indian Institute of Foreign Trade,
New Delhi