Flower IndustryAkash Rangari - 14810005Manish Kumar Singh -14810031Sheena Chaudhary - 14810069Wadhonkar Pavan -14810086

Floriculture“The cultivation and management of flowering and ornamental plants”. It includes• Cut flowers, loose flowers, dry flowers, ornamentals &

flowering plants• Example: Rose, Jasmine, lily, Orchid, Gerbera, Tulips, Marigold,

Alstromeria, Snapdragon , Anthurium, Chrysanthemum, Gladiolus, Daffodils

• Production is growing at a rate of 8 - 10% per annum.• There are nearly 120 countries, which are active in floriculture

production on a large scale.• The economy of some countries - Netherlands, Israel and

Colombia - is dependent on floriculture industry.

Global Scenario

NETHERLANDS33%

JAPAN24%

USA12%

ITALY11%

THAILAND10% OTHERS

10%

SHARE OF FLOWER PRODUCTION (2012-2013)

• India Share in global floriculture sector is 0.61% which is likely to reach 0.89% by 2015.• Export : India's total export of floriculture was Rs. 460.75 cr in 2014-15• Major cut flower producing country-Netherlands (59%)• Major cut flower importing country- Germany (34%)

Data InterpretationQ

uanti

ty

Time

Export Quantity

Export Constraints• Infrastructure and marketing issues – – High import tariff– Low availability of perishable carriers– Higher freight rates– Inadequate refrigerated and transport facilities

• Challenges related to availability of basic inputs– Quality seeds– Planting materials– Efficient irrigation system– Skilled manpower

Indian Scenario• Area under floriculture production in India is 232.74 thousands hectares

with a production of 1.729 million tonnes loose flowers and 76.73 million tonnes cut flowers.

• Major States of Flower Cultivation are: Maharashtra, Karnataka, Andhra Pradesh, Haryana, Tamil Nadu, Rajasthan, West Bengal have emerged as major floriculture centres.

• Emphasis has been shifting from traditional flowers to cut flowers for export purposes.

• Mainly, Flower Market is divided into parts:

Cut Flowers Loose Flowers

Uttarakhand Floriculture• In India Marketing of cut flowers is much unorganized.• Wholesale markets mostly operate in open yards.• Retail outlets - more often than not operate in the open on-road sides.• Some good florist show rooms.• The packaging and transportation of flowers from the farms to the retail

markets at present is very unscientific.• Government assistance for buying refrigerated cargos

Area Under Floriculture in key Districts of Uttarakhand (2012 - 13)Name of Area Area Under Floriculture Production

Hector Tonnes Spike or cut flower (No.- Lacks)Nainital 103.80 25.31 991.31

Dehradun 183.00 491.75 91.92Haridwar 724.60 675.55 232.92

Total 1803.69 1994.82 2939.62

© 2012 State Horticulture Mission, Government of Uttarakhand.

Flowers Production inUttarakhand (2012 - 13)

Name of Area Gerbera Marigold Rose

Area (Hector)

Production (Cut flower)

Area (Hector)

Production (Tonnes)

Area (Hector)

Production (Tonnes)

Nainital 24.50 753.88 10.50 15.00 4.00 4.22

Dehradun 37.00 24.30 69.00 472.00 5.00 3.75

Haridwar - - 452.00 558.68 73.00 62.78

Total 144.50 2059.40 646.26 1414.23 156.45 151.35

Export of flowers to Holland and other EU countries worth Rs. 1 Cr. In 2012-13 from Uttarakhand

© 2012 State Horticulture Mission, Government of Uttarakhand.

Government Programs and Policies

• The agricultural and processed food products export development authority (APEDA), the nodal organization

• Has introduced several schemes for promoting floriculture exports from the country including -– Development of infrastructure– Packaging– Market development– Subsidy on airfreight for export of cut flowers and tissue-cultured plants– Database up-gradation– Import duties have also been reduced on cut flowers, flower seeds,

tissue-cultured plants, etc.– Setting up of walk in type cold storage has been allowed at the

International airports for storage of export produce.

• Integrated Development Of Commercial Floriculture Aim: Improvement in production and productivity of traditional as well as

cut flowers through:– Availability of quality planting material– Production of off season and quality flowers through protected

cultivation– Improvement in post harvest handling of flowers– Training persons for a scientific floriculture

• Indian Council Of Agricultural Research and Council Of Scientific And Industrial Research– Crop improvement– Standardization of agro-techniques including improved propagation

methods– Plant protection and post harvest management

Government Programs and Policies

Ghazipur Flower Market, Delhi

FLOWER MARKET COMMITTEE

• Established in January 1997 to regulate the trade of flowers.• Aim: To provide infrastructural facilities to the market users

and to protect the interest of the farmers and give them a stable platform for selling their produce.

• Presently the committee is having 421 valid licenses holder under:

1. Traders (Auction) - 212 (A category)2. Commission Agent - 209 (B category)

Flowers came from all over India in Ghazipur market.

Supply Chain of Flowers Ghazipur Mandi

Farmer Mandi Retailer Customer

Wholesaler Traders

Trader’s Commission

10% Govt. traders

Commission

5% Other

4% Packaging & Transportatio

n1% Govt.

5% Personal

Local agent charges 2-3% commission. 2% from farmers and 3 % from retailer.

Demand Uncertainty

• Demand is uncertain in flower sector. Mostly depend on final customer side.

• Quick forecasting can be done during festivals, pooja and wedding seasons.

• Price also increases during peak time.

There is always minimum 10 % Wastage of flowers: Acc. To Delhi agent.

Haridwar (Marigold Pricing)

Price can go as low as 5/- Rs/kg during slack demand and 70-80 Rs/kg during diwali and other festivals. Maximum 100 Rs/kg of

Marigold. Wet Marigold can’t be sold and create huge losses during rainfall

Flower Market Quantity (Quintals) Price (per kg)

Haridwar Agent 5-6 20-30 Rs

Total Kankhala Mandi 15-20 20-30 Rs

*Commission 5% from Farmers and retailers each

Supply Chain of Marigold

20-30 Rs/Kg 20600-20900 Rs/Quintal

40-50 Rs/kg

Profit 1000-1500 Rs/Quintal

Farmer Agent Retailer Customer

2% Commission farmers

3% commission Retailers

Price can go as low as 5 Rs/kg and yield increases upto15-20 kg per farm in April. During this time of the year rose water

(Gulkand) and other rose related products are manufactured.

Haridwar(Rose Pricing)

Flower Market Quantity (kgs) Price (per kg)

Haridwar Agent 30-40 kg 70-80 Rs

Total Mandi 70-100 kg 70-80 Rs

*Commission excluded

Storage of Flowers

Loose roses & marigolds are kept at room temperature.• Mandi Agent: Shelf life of Marigold: 1 dayShelf life of loose rose: 1-2 day• Retailer Outlet:Shelf life of Marigold : 3-4 daysShelf life of loose rose: 3-4 days

Type of Packaging

http://www.fedex.com/us/packaging/guides/Flowers_fxcom.pdf

Roorkee Retailer Side of Story

Roorkee Retailer Quantity Cost Price Selling Price

Marigold Acc. To Customer 50 Rs/kg 70-80 Rs/kg

Cut Rose 80-100 stems 15 Rs/Stem 20 Rs/Stem

Total wastage acc. to Roorkee shopkeeper is 25 %

Summary• It’s an unorganised sector as we found different

commission rates in Delhi (10%) and Haridwar (5%)• Exports has shown a decreasing trend. That is a concern

for farmers and lack of Govt. support.• Involvement of corporate sectors, provide livelihood

and means of self employment.• Subsidy for storage

Sources• http://delagrimarket.nic.in/index.asp • http://apeda.gov.in/apedawebsite/six_head_product/flori

culture.htm• http://vikaspedia.in/agriculture/farm-based-enterprises/fl

oriculture

• http://www.uou.ac.in/programme/ccfp10 • http://shm.uk.gov.in/pages/display/6-state-profile • http://agricoop.nic.in/ • http://www.mapsofindia.com/my-india/government/the-

flower-power