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Tuesday, March 30, 2010

Nepal’s floriculture business blooms

KATHMANDU, MAR 29 -A group of floriculture entrepreneurs have set up Floriculture Cooperative Limited to produce flowers collectively with the aim of fulfilling the increasing demand for flowers in the domestic and international markets, reports Kathmandu Post.

"Both demand and production have been increasing every year," said Arun Chettri, president of the Floriculture Association of Nepal. "However, we have not been able to increase quality production despite good demand from the international market."

According to the association, cut flower exports soared 140 percent to Rs. 60 million during the last fiscal year from Rs. 25 million in the previous year. Japan, Kuwait, Qatar, India and a number of European countries are the major importers.

Chettri said that the cooperative would facilitate joint investment and large-scale production. It would target international customers in particular.

"The cooperative will monitor flower cultivation and carry out studies on the possibility of growing flowers in various parts of the country," he added.

Currently, floriculture entrepreneurs produce more than a dozen types of cut flowers in Chitwan, Dhading and Kavre districts. In the Kathmandu Valley, there are nurseries in Godavari, Sankhu, Naikap, Chapagaon, Bunkmate, Jorpati  and Ichangu. According to the association, flower farming is being carried out on 105 hectares of land in 35 districts.

"Seasonal production has been increasing significantly every year, but demand during the production season is low," said Hira Sharma, manager of Flora Incorporated Trade, a wholesaler in the valley. "Summer is the best season for production, but there are few takers presently as it is not the wedding or festival season."

Increased production has also meant that flower imports from India have declined. Earlier, 75 percent of the requirement would be met by imported flowers. Imports now account for only 25 percent of the demand mainly during the Tihar festival.

Chettri said that presently output had exceeded demand as many farmers had turned to growing flowers without first doing a market study. "Around 90 percent of the farmers who are growing flowers do not know the technicalities and the market," said Chettri. "There is a good market inside and outside the country if we can produce flowers that are in demand during the season."

According to the association, Kuwait has emerged as one of the major markets after Japan for Nepali flower producers. Bagmati Flora is planning to open a wholesale outlet in Kuwait with a local partner.

In the next fiscal year, the association plans to carry out a study on potential foreign markets such as Denmark, Holland and the Gulf countries.(Writer-South Asia)