8/3/2019 Soex Flora

1/11

Indian rose exporters, hit by a dip in local production, have been bracing forlower margins. Domestic production has been low because rains were spreadover more days, depriving rose farms of the sunlight they require for growth.Coupled with higher labour and input costs, weather patterns are "definitelyimpacting production and bottom lines massively," said Manjunath Reddy,managing director of Bangalore-based Meghna Floritech Ltd and a committee

member of the South India Floriculture Association, an industry body, whichestimates a reduction of 20-25% in rose production this year.

Indian rose farms are located in two clusters at Bangalore and Pune, and flowergrowers typically export over 60% of produce between September and March.For the rose trade, the festive season running up to Valentines Day on 14February, is a boom time for sales. Roses from Rajasthan have traditionally beenused for fragrance, essence, rose water, and other edible products. But nowRajasthan has a research facility at the agriculture university in Udaipur to helpfarmers grow roses for consumers overseas.

"We expect this Valentine's to be quite normal and the prices that we are talking

about are pretty much the same prices that we did last year, but in rupeecontext, it is better though our sales currency is euro," said K.S. Ramakrishna,managing director of Bangalore-based Karuturi Global Ltd, the worlds largestexporter of roses. The rupee has depreciated 22% against the dollar, by 9%against the euro and 33% against the yen since the start of this year, accordingto Bloomberg data. That translates into more rupees for every dollar, euro oryen that is earned by exporters, who had been hit last year by the steepappreciation of the local unit.

Indias floriculture exports for the year ended March were valued at Rs338 crore,according to the Agricultural and Processed Food Products Export DevelopmentAuthority, or Apeda, a Union government agency. Cut flowers such as rosestems constitute around 25% of Indias floriculture exports, which are less than1% of the international trade in flowers. Commercial floriculture gives greateryield to farmers and takes less labour and water than traditional foodgrain

Introduction

'Blooming business' and 'rosy future'. These are the words the Indian authoritiesuse to sing the praises of the flower industry. The central government and thestate governments grant subsidies and give information to stimulate the buildingof greenhouses for the cultivation of roses, carnations, chrysanthemums and

other cut flowers. This development takes place mainly in the countrysidesurrounding the metropolises Bangalore, Mumbai (Bombay) and Delhi. Duringthe last years the acreage of flower greenhouses has tripled or even quadruplednear these cities. Hopes are running high. A growth percentage of 30% is beingmentioned. India hopes to get its share of the growing demand for cut flowers inthe world. This trade is considered a goldmine and a panacea for India'seconomic and social problems. The flower trade is said to create plenty ofemployment opportunity. Moreover, the export of cut flowers would earn a greatdeal of foreign currency. This is very important to India. It has a debt of fiftythousand million US dollars and is listed third on the world rankings of debtcountries - after Mexico and Brazil.

8/3/2019 Soex Flora

2/11

But there is quite a different story to tell about flowers. And this is the storyabout pesticides, pollution of water and soil, about bad labour conditions andsick labourers. The artificial cultivation of flowers in greenhouses is said to bethe most polluting agricultural activity humanity ever created. The industryoriginates from Western Europe. Holding 60% of the world trade of cut flowers,

the Netherlands is by far the most important producing country. During the pasttwo decades, however, the flower industry has gained a foothold in the ThirdWorld, the Western Europeans often holding a big finger in the pie. For instance,the floriculture in Kenya is largely in the hands of foreign investors, including theBritish-Dutch multinational Unilever. This means that a large part of the profits ispumped back into the Netherlands and Great Britain, leaving the Kenyans withthe ecological problems. An example: the water level in the Naivasha lake fallsevery year by 15 cm because of the enormous water consumption by thesurrounding flower industries.

Conclusion: there are plenty of reasons to take a critical look at the growth of

the flower industry in India. Who are the investors in this sector, where do theprofits go and who benefit by the substantial government subsidies? Does theinternational flower trade have as many opportunities as is often suggested? Isthe demand for cut flowers growing at the same high pace as the supply? Willthe market not become oversupplied and is collapse not imminent? What are theconsequences of floriculture for the environment and what measures are takento prevent environmental damage? How are labour conditions in the floralindustry? How are health hazards of pesticides dealt with?

This report deals with those questions. This text is based on interviews anddocuments we collected in India during the first six months of 1997. We focus on

the district of Bangalore, the main district for the production of flowers in India.We pay full attention to the activities of the Dutch. They play a major role in thegrowth of the floral industry of India.

Conclusions and recommendations

Anyone who has observed what is happening in the Indian flower industry candraw only one conclusion: the scent of the Indian export rose is not sweet, butbitter.

Just like everywhere else in the world, the Indian flower industry pollutes theenvironment. This form of agriculture (or is it industry?) does not fit in with theidea of a sustainable society. It is a poignant fact that the Indian flower sector isco-financed by Dutch development aid. One should wish India a more humanand environmentally friendly development!

The Indian government spends many subsidies on the export flowers. But the

profit from this investment is dubious. It is the Dutch entrepreneurs who profitfrom the Indian flower industry. The Indian workers on the other hand are the

8/3/2019 Soex Flora

3/11

victims: they have to do hazardous work in greenhouses for moderate wagesand without any social security. Of course this means more employment, but isthis the kind of work the Indians really want? And in numbers this employmentdoes not amount to much. The sector is very capital intensive. One acre needsan investment of 200 to 300 thousand US dollars. An average of 20 labourers

works in one acre. This means that it costs 10,000 to 15,000 dollars to employone labourer. This is an extremely expensive job by Indian standards. The sameamount of money would provide jobs for more people in other sectors.

The most important recommendation is to stop the flower industry in India, or atleast check its growth. This is certainly possible. The rise of the flower industry isnot a natural process and it has little to do with a development of the marketeconomy. The Indian and - to a lesser degree - the Dutch government play animportant part in promoting and financing. This means that subsidies may beused in other ways and development may be guided into another direction. Indiais at an advantage as compared to other flower producers like Kenya and

Colombia. Since the Indian flower sector is still small, the cut in subsidies will beless painful. Another course is still possible without too drastic consequences.

While the flower industry is still there, rules must be tightened. A good and clearregistration of pesticides is needed. Moreover workers have to be trained in theuse of pesticides. Protective clothing must be of the same standard as theclothing used in Dutch greenhouses. Pesticides (like DDT and captan) banned inthe Netherlands and Europe must not be used. Double standards cannot be

justified, particularly not in companies co-managed by Dutch people. The waitingtimes after spraying in greenhouses prescribed by the WHO should be observed.

Summary

Growing flowers in greenhouses appears to be very profitable in India. That is tosay: it is profitable for foreign, mainly Dutch companies who sell plantingmaterials, technical knowledge and cooling units. Their Indian buyers and jointventure partners still have to wait and see how profitable the sector will be forthem.

Indian business people investing in the flower industry are very much dependenton their foreign partners. The Dutch and the Israelis supply the technology andthe planting materials and also dominate the distributive trades. The Indianssupply (cheap) labour and capital. It

8/3/2019 Soex Flora

4/11

is characteristic of this setup that themajor share (90%) of the investments isat the expense of the Indians while it isexactly the opposite where the profit isconcerned: approximately 90% is for the

foreign partners. Moreover, the risksinvolved in an unpredictableinternational flower trade are exclusivelyat the expense of the Indians. A surplusis imminent on the international marketfor roses - India's chief product. Evennow a fall in price is becoming visible. Ifthis crisis continues, the profit of theIndians will disappear like snow insummer. But the foreigners havesecured their profits through the sale of

raw materials and equipment. In short:the flower industry is much moreprofitable for foreign companies than fortheir Indian partners. It is characteristicthat the flower industry in India began togrow after new loans by the IMF andthat the sector has been stimulated bythe FMO, a development bank, whichrepresents the Dutch state and Dutchbanking.

But even if the Indian flower industrybecomes successful, the economic profitfor the population will be minimal. The investors in the flower industry are bigagricultural and industrial companies. For others investing is hardly possible: theoutlay on greenhouses is between 200 and 300 thousand dollars per acre. Theforeign exchange earned in the flower industry and the generous Indian statesubsidies fall to the elite only. The employment results in the Indian flowerindustry are far from impressive. In the greenhouses there is an average of 20workers per acre. This means that one job costs 15,000 dollars. This money cangive jobs to many more people in India. It also became clear that the flowerindustry not only creates jobs but also costs jobs, for the land to build thegreenhouses on is often purchased from (small) farmers.

Particularly in the Third World, the flower industry is a sector with a high 'casinopercentage'. The risks are high, quick profits are aimed at, and there is hardlyany concern about long term effects. The same goes for environmental pollution.By sketching a picture of a beautiful natural product, the government andbusiness disguise the environmental hazards. But in reality, huge risks threatenthe environment: floriculture inherently needs a high dosage of artificial fertilizerand pesticides. These developments are not only ecological hazards, but alsoendanger food supplies. Continuous and intensive cultivation of flowers willeventually lead to sterile soil and no cultivation of any crop will be possible at all.Another thing is that an extremely high amount of groundwater is pumped up, inareas too, where the groundwater level is critical, like in the Bangalore district.The land used for the greenhouses for roses appears to be bought from small

Many chemical pesticides are being

used in the flower industry.

8/3/2019 Soex Flora

5/11

farmers. Since the farmers usually produce cheap food, these sales greatly affectthe food supplies of the poor population.

The wages in the greenhouses are poor even by Indian standards: between 0.75to 1 dollar per day. Moreover the fringe benefits are very bad: the workers do

not get the holidays and bonuses that are provided for in other sectors ofindustry. Added to this they run big health risks. Protective clothing is lacking oris insufficient. The workers get hardly any or no information about or training inhow to handle hazardous pesticides. Pesticides are used which the WHOclassifies as 'extremely dangerous' or 'highly dangerous'. The waiting times afterspraying prescribed by the WHO are not observed.

SOEX FLORA

The largest growers of cut flowers in India

Leveraging on our expertise in Agro-Farming we diversified into the floriculturalfront also. To meet the ever-increasing international demand for our flowers, weset up Soex Flora, a 100% export-oriented flower unit. Soex Flora commencedoperation in 1995 and started production in August 1996. With a 50-hectaresfarm including 7.5 hectares of greenhouse cultivation, we are the largestgrowers of fresh cut flowers in India. We have acquired the ISO 9002 Certificatefor superior quality of roses, proving our expertise in the floriculture field.

Accolades...

Soex Flora Pvt. Ltd. is an ISO 9002 Companybeing certified by worldwide leadingcertification body, Bureau Veritas QualityInternational (BVQI) who are accredited byUnited Kingdom Accredition Service (UKAS) -5th June 2000

Recognised as the "Largest Supplier fromIndia" to V.B.A, the world's largest Flower

Auction Center.

Awarded a certificate for our "ExportPerformance" for the year '98-99 by theGovernment of Maharashtra.

Awarded a certificate for Export Achievementfor the year 1999-2000 by the Directorate ofIndustries, Maharashtra, India.

8/3/2019 Soex Flora

6/11

Participated in the Hagelunie Growers' QualityCompetition held during the InternationalFlower Trade Show. Recognized for qualityproducts & awarded five certificates for eachvariety that we entered.

KLM the World's Largest Carrier of Perishableshas recognized us as their largest customerfor flowers in India.

Awarded a certificate for Export Achievementfor the year 2000 - 2001 by The Directorateof Industries, Maharashtra, India

Our Quality Policy...

We in "SOEX FLORA" are committed to achieve Customer satisfaction &Confidence in our product & services which meet the specifiedrequirements of our Customer.

We are achieving this by implementing & maintaining an efficientQuality Management System in our Floriculture Farm.

"SOEX FLORA" will continuously improve its products to better satisfythe needs of our customers and will deliver to them, on time and everytime our reliable product & services.

Our goal is your complete 100% satisfaction. We appreciate yourbusiness and are working hard to be your only choice for flower deliveryanywhere in the world.

If you have any questions or concerns regarding your order, weencourage you to contact us, so that we work to achieve your completesatisfaction.

Thank-you for your business.

ARIF FAZLANI

MG. DIRECTOR

Group of Companies

Afzal.tvTobacco is bound to remain one of the main pillars of Sopariwalas activities. TheCompany continues to develop new products in this segment. We are glad tointroduce to you "AFZAL MOLASSES" - tobacco for use in a hubble-bubble (aTurkish water pipe), with apple, strawberry, mixed fruit, Aniseed and othernatural flavours.

Soex.net

http://www.afzal.tv/http://www.afzal.tv/http://www.soex.net/http://www.soex.net/http://www.soex.net/http://www.afzal.tv/

8/3/2019 Soex Flora

7/11

Diversification was inevitable for the ever-expanding export house thatSopariwala Exports was turning out to be. Natural produce being the corecategory of our dealing, we opted for three chief products - Oilseeds, Spices,Rice,.

Soex.tvSoex Handcrafted Flavoured Filter Cigarettes...SOEX is a brand initiative from the house of Sopariwala Exports, India's largestnatural produce exporters.

Soex.bizSoex Handcrafted Flavoured Filter Cigarettes...SOEX is a brand initiative from the house of Sopariwala Exports, India's largestnatural produce exporters.

Sopariwala.comSopariwala Exports - the first Indian name in quality exports of natural produce.In 1900, it was our dream. Today, it is our proud achievement.

Mellow.tvMellow Commodities - A subsidiary ofSOPARIWALA EXPORTS - the firstIndian name in quality exports of natural produce.

Petalsensation.comWe are proud to introduce ourselves to the world market, as an establishedPerfume manufacturer in India dealing in various Oriental and French fragrancein natural oil base.

Fazlani.comThe agro-based products we procure, are processed at our own spices/oilseedsprocessing/cleaning plant, which was set up by the well-known M/s Buhler(India) Pvt. Ltd. The products are stored under optimum conditions and idealtemperatures at our warehouses in Mumbai and Kandla.

SoeX.comSoeX India Pvt Ltd, a part of the Sopariwala Exports conglomerate, brings to youan array of tobacco products for the perfect smoking experience.

Rose Care Tips :

Roses are "flowers of love". To ensure they also blossom for a long time- just like your love - you should take heed of the following tips:

While arranging in vase, give the stems cm. slant cut with a sharp bladeor knife.

Replace water everyday and cut the stems as above. Roses like hot water. By the way, most other flowers like lukewarm water. Remove lower foilage to prevent leaves coming in contact with water. Keep the arrangement away from direct sunlight and breeze.

http://www.soex.net/http://www.soex.net/http://www.soex.net/http://www.soex.net/http://www.soex.tv/http://www.soex.tv/http://www.soex.biz/http://www.soex.biz/http://www.sopariwala.com/http://www.sopariwala.com/http://www.mellow.tv/http://www.mellow.tv/http://www.petalsensation.com/http://www.petalsensation.com/http://www.fazlani.com/http://www.fazlani.com/http://www.soex.com/http://www.soex.com/http://www.soex.com/http://www.fazlani.com/http://www.petalsensation.com/http://www.mellow.tv/http://www.sopariwala.com/http://www.soex.biz/http://www.soex.tv/

8/3/2019 Soex Flora

8/11

In order to make them last longer, you can also put some Aspirin powderor a light salt-sugar solution into the water.

Our Roses... By opting to specialize in the eleven best varieties of rose,

namely Passion, Grand Gala, First Red, gold Strike, Noblesse, Aqua,Avalanche, Bordeaux, Bugatti, Happy Hour, Poison. We are in aposition to keep a tight control over the quality of the flowers we grow,simultaneously aiming for higher production figure.

Passion is a variety with good bud-size. It is bloodred in colour and has good opening. It's stem lengthranges from 40, 50 & 60 cm.

Grand Gala, a world of color is almost thornless redrose which in a class by itself having stem length60, 70, 80 & 90 cms.

First Red is deep red in colour. It has dark greenfoliage and a stem length of 40, 50 & 60 cm.

Gold Strike is in Golden yellow color with large budsize having stem length 50, 60, 70 cms.

Noblesse is pink in colour with medium bud-size andgreen foliage. It has stem length of 40, 50 & 60cm..

8/3/2019 Soex Flora

9/11

Aqua is pink in color with large bud size having stem

length 50, 60, 70 cms. Its an thronless variety.

Avalanche is white in color with large bud sizehaving stem length 50, 60, 70 cms.

Bordeux is red in color with large bud size havingstem length 50, 60, 70 cms.

Bugatti is magenta purple in color with large budsize having stem length 50, 60, 70 cms.

Happy Hour is red in color with large bud sizehaving stem length 50, 60, 70 cms.

Poison is purple in color with large bud size havingstem length 50, 60, 70 cms.

A Virtual tour...

8/3/2019 Soex Flora

10/11

For the perfect rose everything needs to be perfect fromstart and we ensure that nothing is left to chance in ourgoal of giving you the best from the temparate climate tothe use of virgin soil, from the use of best irrigationtechnologies to use of rich manure and bio fertilisers, from a

modern communication setup to trained personnel. ISO9902 quality standards, 7.5 hectares under green housecultivation with an annual production of over 10 millionflowers. No wonder than the roses we grow have won usnumerous awards...

Since roses are extremely sensitive and vulnerable, greatcare is taken to prevent contamination. The flowers are firstprecooled in our cold storage - a facility that has thecapacity of handling more than half a million flowers atany point. The flowers then go through the grading machine

which helps in increased productivity without compromisingon the quality.

Thereafter flowers are deleafed. Bunching of these flowersis then done in a staggered manner so that the buds are notdamaged during storage and transportion.

These bunched flowers are then packed in corrugated tubes

and go into our cold storage. For packing we use corrugatedboxes used worldover for fresh cut flowers. The wholeprocess is auto-mated with portable strapping machines.

Dispensing, tightning and sealing the boxes to the optimumstrength, ready for export. These are then transported in aReffer van in a controlled temperature of 2 degree celcius tothe airport and are delivered to the airline a little beforedeparture to maintain the gold chain.

To provide our customers with the best posisble service wehave entered in to an annual contract with KLM Cargo theworld largest carrier of perishables. Infact we are KLM'slargest customer for perishables in India.

8/3/2019 Soex Flora

11/11

Shipping Info...

Since roses are extremely sensitive and vulnerable,great care is taken to prevent contamination. Afterharvesting & grading, the flowers are treated in the

Florissant 600 solution. The flowers again gothrough the Grading machine which helps inincreased productivity without compromising on thequality. From here the flowers go into our coldstorage - a facility that has the capacity ofhandling more than half a million flowers at anypoint.

Even in packing, we use the specially made corrugated boxes usedworldover for packing fresh cut flowers. The whole process is auto-mated with portable strapping machines dispensing, tightening and

sealing the boxes to the optimum strength, ready for export.

These are then transported in a Reffer van in a controlled temparatureof 2 degree celcius to the airport, and is delivered to the airline, onehour before the departure to maintain the cold chain. To provide ourcustomers with the best possible services, we have entered into anannual contract with KLM Cargo - the world's largest carrier ofperishables. With many such 'Quality Management Systems' inpractice, we have been accredited with the ISO 9002 Certificate.