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Showing posts with label Flouriculture market. Show all posts
Showing posts with label Flouriculture market. Show all posts

Tuesday, January 4, 2011

300cr fall likely in floriculture exports by 2010

New Delhi: India’s floriculture exports are likely to grow to Rs700 crore by end of 2010 against projected level of Rs1000 crore. The shortfall in target is because of bottlenecks like poor infrastructure and plant material, production technology and availability of basic inputs along with insufficient cold storage facilities, REPORTS (livemint.com)

According to Assocham, poor infrastructure facilities and inadequate push from government, has led to domestic floriculture exports not rising to expected standards. Like, the value of exports of floriculture products from India was Rs212,70 crore in 2004-05 which went up to Rs305 crore in 2005-06 and further escalated at Rs390 crore in previous fiscal.

In 2007-08, exports are likely to be around Rs500 crore which by 2010 can go up to Rs700 crore against targeted levels of Rs1000 crore.

Although five agri-export zones have been set up in Sikkim, Tamil Nadu, Uttaranchal, Karnataka and Maharashtra, Karnataka which contribute 75% of flori production, export quality floriculture is still missing. Resultantly, India’s contribution to world flower trade of about $12 billion (Rs480crore) remains way below its potential.

Besides, setting up of cold storage and cargo handling facilities at key airports like New Delhi, Mumbai, Hyderabad, Bangalore, Chennai, Trivandrum and Coachin are still under active consideration of the Government and prove to be inadequate to take floriculture exports to the desired direction.

Recommendations :
* If India has to achieve the ambitious export target of Rs1000 crore by 2010 key issues need to be addressed: economies of scale, product range, incorporation of latest varieties and quality control and certification and creation of effective cold chain management.

* Bottlenecks like inadequate infrastructure, inappropriate plant material and good production technology and non-availability of basic inputs would have to be removed and promotion activities of flori products exports would have to be taken up.

* For boosting its floriculture export, India should go in for potential export items like cut flowers, dry flowers, seeds potted plants and micropropagated plantlets. Intensive mobilization of resources should be left on those that are engaged in such exports with financial institutions allowed to come forward for flori exporters.

*Efforts like setting up the export promotion council, establishing appropriate marketing and distribution channels, abolishing import duty on inputs and reducing existing airfreight tariff structures are needed to promote flori export particularly to countries like Netherlands, Germany, France, Italy and Japan.

Indian scenario

In India,floriculture industry comprises flower trade, production of nursery plants and potted plants, seed and bulb production, micro propagation and extraction of essential oils. Though the annual domestic demand for the flowers is growing at a rate of over 25% and international demand at around Rs90,000 crore, India’s share in the international market is negligible.

With enormous genetic diversity,a varied agro climatic condition and versatile human resources, India can tap its huge floriculture reserves.

As per estimates, the per capita consumption of flowers is the maximum in Norway ($146) followed by Switzerland ($126) and Germany ($88), though the maximum consumption of flowers is in the USA ($12,500 million), Japan ($5465 million) and Italy ($4270 million).

Though floriculture industry has been the monopoly of a few countries (mainly Netherlands), the largest trader of floricultural products, with a lion’s share of 70% followed by Columbia and Israel with 12% and 6% share of the global floriculture trade.

Opportunities :With production in traditionally strong markets (Netherlands and US) have reached threshold levels, developing countries like Columbia, Israel, South Africa and Kenya have emerged as new production centres. Most flowers are grown under protected conditions in covered structures like green houses and poly/glass houses in European and other countries. Due to intense cold, high energy cost, production in these countries is limited during winter months. Thus they have to depend largely on imports to meet their domestic demand as most of the festivals fall during this period when the demand of flowers is at its peak.

Against this backdrop India which currently has only 0.3% share of the world market with export of around $30 million, it has a strong chance of entering the market and creating a strong position for itself. 

The Jammu and Kashmir Medicinal Plants Introduction Centre (JKMPIC) set-up in January 1996 in Srinagar has the primary mandate of coordinating all matters relating to medicinal plants and support policies and programmes for growth of trade, export, conservation and cultivation and introduction of new plants  

For more details: jkmpic@gmail.com
home: http://jkmpic.blogspot.com
Ph: 09858986794
Contact person : Sheikh GULZAAR (Head)