DEMAND SUPPLY ASSESSMENT OF THE CUT FLOWERS IN THE VICINITY OF HYDERABAD

Transcription

1 2013 DEMAND SUPPLY ASSESSMENT OF THE CUT FLOWERS IN THE VICINITY OF HYDERABAD Knowledge Document Prepared by FABS (Food and Agri Business School), Chevella, Hyderabad 1

2 CONTENTS 1. Floriculture at a Glance in India Spread of Floriculture in States Potential of Floriculture in Andhra Pradesh Need for a Study Personal Interaction with Stakeholders..07 I. Wholesalers...07 II. Retailers.08 III. Event Managers Demand Assessment in Hyderabad City Present Supply in and Around Hyderabad Supply Chain in Hyderabad SWOT Analysis Conclusion Annexure.19 I. Government Policies Supporting Floriculture..19 II. Diversity of Flower Trade & Seasonality in India..21 Cut & Loose Flowers..21 III. Use of Green House..26 IV. Mapping of Auspicious Days in a Year..28 V. Introduction of FABS..30 2

3 Demand Supply Assessment of the Cut Flowers in the Vicinity of Hyderabad 1. FLORCULTURE AT A GLANCE IN INDIA India celebrates numerous festivals, rituals and special functions where use of flowers is a compulsory component, without which there are no celebrations. Indian ancient heritage is associated with flowers and floriculture. Floriculture is the growing of cut flowers, potted flowers and foliage plants both in open fields and green houses. With increased living standards, consumption of flowers in the households have increased and it has become a common practice to use cut flowers for decoration in the modern and urban houses and liberal usage in all important events for decoration in addition to loose flower usage in all rituals, festivals, etc. Expanding hospitality industry has also added a new dimension for cut flower consumption. This changing living habits have now opened a new vista in agribusiness i.e., commercial floriculture. About thousand hectares area was under floriculture in India during Production was estimated to be million tonnes of loose flowers and million tonnes of cut flowers in The consistent increase in demand for cut and loose flowers have contributed to the trade of flowers in India. The cut flower crops grown in the country are Rose, Gladiolus, Tuberose, Aster, Gerbera, Carnations, Anthurium, Lilium and Orchids, etc. India s export earnings from floriculture was Rs crores in which had increased by 18.9% during The exports have gone up to thousand tonnes with a value of Rs crores 2 during Nearly 85 % of the export trade is to USA, Netherland, Germany, UK, Canada and Japan. 2. SPREAD OF FLORICULTURE IN STATES Floriculture is extensive in several states with Tamil Nadu (25%) Karnataka (20%), Andhra Pradesh (14%) 3 having gone ahead of other states. Share of cut and loose flower producing States in India are depicted in the pie charts given below. 1 Source: Apeda.gov.in 2 Source: Apeda.gov.in 3 Apeda.gov.in Figure 3: Export value of Indian floriculture Figure 2: Export quantity of Indian floriculture 3

4 Table 1: Production of flowers in various states in India As shown above (Table 1) Tamil Nadu is the largest loose flower producing state, while West Bengal is the leading cut flower producing state in India. Andhra Pradesh is ranking third in both cut and loose flower production with a share of 8.98% and 13% where the 4

5 entire production is consumed by local demand only. Besides this around 95% of the domestic demand for cut flowers is met from imports from adjoining states across India. The support policies of government for promoting floriculture are given in Annexure I. The diversity of flower types and seasonality in India is given in Annexure II. 3. POTENTIAL OF FLORICULTURE IN ANDHRA PRADESH Andhra Pradesh is the fifth largest state in the country both in area and population. The State has 1112 mandals with villages. The state can be divided into three distinct physical regions. The coastal plains, which covers about 35% of area. The peninsular plateau covers 52% of the area and lies within an altitude of m. The Eastern Ghats account for 13% of the area, with altitudes ranging between 600 to 900 m. the Agriculture and horticulture in the state contributes 19% of the State GDP and employs 65% of the total workforce. Small and marginal farmers account for 83% of land holdings and 46% of operated area. Irrigation covers 42% of the net sown area while the remaining 58% of the net sown area is rainfed. Andhra Pradesh with high geographical diversity, seven agro-climatic zones, varied soil types and good irrigation resources is better placed for production of various floricultural crops in the state. The state is well recognized for growing loose flowers such as Rose, Jasmine, Marigold, Chrysanthemum, Tuberose, Crossandra and Aster etc. In recent times there has been a significant increase in the overall demand of few major cut flowers like Gerbera, Carnations, Orchids, Lilies and Anthuriums due to rapid urbanization and increasing living standards. This demand for cut flowers is seen as major opportunity by the innovative farmers and adopted commercial cultivation of these cut flowers in and around Hyderabad City, where the demand is concentrated. Gladiolus, Marigold and Chrysanthemum are produced in the State in large volumes during festivals and rituals followed by Jasmine which are generally used for the purpose of decoration, preparation of bouquet, etc. The cut flowers are used mainly for decoration purposes in the events, functions, ceremonies etc. The neo-rich class of urban population all over the State and in particular in the City of Hyderabad have started 5

6 consuming more and more flowers for their socio-cultural activities. The Green house technology is a precision mode of agriculture which is very cost intensive and the State is providing incentives in the form of subsidy both for the construction of the green house and also for the planting material. A brief of the green house technology is given in the annexure III. About 177 green houses have come up in and around Hyderabad city to meet the growing demand. The green houses primarily produce Gerbera and Carnation. Considering this growing appetite for the cut flowers in the urban conglomerates and the dynamic farmers near the urban habitats, there is a tremendous potential for expanding the controlled cultivation of cut flowers in AP in general and around Hyderabad City in particular. 4. NEED FOR A STUDY The state provides huge opportunity for commercial production and offers attractive investment opportunities for farmers and agro entrepreneurs. There is high demand for these products in the domestic and international market. However, it is essential to have a planned growth of this commercial activity so as to ensure steady income to the farm entrepreneurs without pushing them to crisis due to vagaries of excess supply, or price fluctuations. There is no concrete study so far, so as to the extent of area expansion feasible under production in AP or around the City of Hyderabad. Food and Agri Business School (FABS) of Sagar Group of Institutions (A brief write up is given as Appendix) has taken up a quick exercise to understand the demand and supply in the City and the extent of green house capacity expansion that is feasible. In addition the study attempted to suggest the future initiatives to be undertaken by the State to ensure this growing activity will be a boon for the farmers. It is also essential to understand the scope of export of cut flowers from the State. The study is purely perceptional arrived based on one to one interactions with various players in the trade, and quick study of the source supply and event management activities in the City. There is no established methodology of assessing the demand in this growing area. Hence different methods of demand assessment are attempted to have validation of the outcome. 6

7 5. PERSONAL INTERACTION WITH STAKEHOLDERS Stakeholder interaction is an important source for knowing the information related to the purchase, demand, price and supply of flowers. In order to understand the market in the City, a visit to the local wholesale market of the Hyderabad was made and few wholesalers and retailers were interviewed face to face. Based on the interaction and keen observations the flower trade as perceived is depicted below. The market chiefly deals in cut as well as loose flowers. As per our observation the market is much unorganized which leads to high fluctuation in prices. Majority of the farmers from various mandals (located at a distance of 40 to 65 kms) around Hyderabad come to the Wholesale market Gudi Malkapur for the sale of their flowers. Every day morning this wholesale market starts from 4 am when the loading and unloading of the cut and loose flowers is done and various stakeholders from different corners come and sell their flowers. The prices are volatile varying from time to time based on number of factors like climate, season, occasions, quality of flowers, etc. The major flowers seen in this market are Rose, Gerberas, Gladiolus, Anthuriums, Jasmine, Marigold, Carnations, Lilium and Orchids. The observation and interaction made with different stakeholders in the market is mentioned below: (i) WHOLESALER There are around 120 local wholesalers who come to Gudi Malkapur market on a day to day basis, out of which 8-10 have monopoly of the business. They maintain strong contacts throughout the State for the purchase of the quality cut flowers. The market operates primarily on commission basis and the commission agents have direct linkages with the producers. Therefore for most of the time they buy from known people as they can assure the supply at a fixed price. The wholesaler buys in bulk especially in peak seasons of wedding and festivals etc. Generally the prices are fixed during lean periods otherwise they vary during the peak seasons depending upon the arrival of the cut flowers and demand in the city for various purposes. They earn a high price compared to the rest of the stakeholder with minimal risks as they do not stock the production with them. During peak season they sell cut flowers at an average price of Rs per stem in case of Rose, Gerbera, Carnations which might go up to Rs. 4-6 per stem in case of Anthurium and special Hybrid Roses. 7

8 Whereas during lean period the prices goes down up to Rs. o per stem. The need for a separate market for cut flowers was expressed by all the wholesalers. Need for cold storage, grading, packing and regular supply of cut flowers were the crying needs expressed by nearly all the wholesalers in the market. Haled Khan (Wholesaler): I have been working in this sector since last 6 years and deal with procurement of loose and cut flowers (Majorly- due to higher margins). According to me the major constrains in the current system are quality and delivery on time which leads to less profits and loss of customers. Gerbera, Roses, Carnation, Jasmine and Marigold are the major flowers that I deal with and sell them back to retailers based on the spot price given. (ii) RETAILERS Verbatim of a wholesaler at Gudi Malkapur A retailer is the person who sells directly to the consumer. There are around small and large retailers in Hyderabad. The wholesalers who buy from the commission agents or growers in the wholesale market sell to the retailers who use the cut flowers for various purposes like preparation of bouquet, decorations, and garlands for marriages etc. They buy flowers under a great risk as they stock the produce with them for a certain time. They buy in bulk only in peak seasons and otherwise depending upon the daily local demand and consumption the purchase is planned. Usually during peak seasons they sell cut flowers at an average price of Rs , to Rs per stem depending upon the type and quantity. Majority of the retailers have reported about the challenges like price fluctuation, lack of regular supply, quick deterioration of flower quality and lack of new varieties. Few retailers have also reported that there is quite a bit of wastage of flowers as most of them carry on their business on pavements, exposing flowers to open atmosphere including dust, sunshine, hot wind, etc. These factors actually prompt the retailers to charge high prices especially for floral arrangements like bouquets, wreaths, decorations etc. This widens the gap of price from producer to consumer. Kota Reddy (Retailer): I come here to buy loose and cut flowers on a daily basis. I have two shops in the city (Punjagutta & Ameerpet) for which I buy flowers every day from Gudi Malkapur. We sell bouquets from Punjagutta outlet and garlands and loose flowers from Ameerpet outlet. On a daily basis we earn a profit of 30-40% (probably because of location of our outlets) The market is very volatile so prices keep fluctuating depending upon season. During festivals and marriages we purchase more than 200 bunches of cut and 100 kgs of loose flowers on an alternate day basis. Verbatim of a retailer at Gudi Malkapur 8

9 The following table shows the prices of various cut and loose flowers based on quality standards from wholesaler and retailer point of view. Among cut flowers the whole sale price of Rose, Gerberas etc varies from Rs per bunch during peak seasons. Whereas the price is high for Orchids, Carnations, Lilium, and Anthuriums which varies from Rs per bunch. The prices of the cut flowers are very volatile as they are dependent on many factors. Average Market Price for Major Flower Crops Flowers Unit Price in Rs./kg or doz or each stem Marigold Kg Jasmine Kg Crossandra Kg Chrysanthemum Kg Tuberose Kg Rose Kg Gladiolus Doz Carnation Doz Orchids Each stem Lilium Each stem Anthuriums Each stem Gerbera Each stem Golden Champa Each stem 7-10 (iii) EVENT MANAGERS We interviewed two event managers in Hyderabad who were associated with various activities like weddings, receptions, birthdays, and hotel decorations. The marriages and receptions are the ones which consume maximum cut flowers during seasons followed by other events like decorations, birthday parties and corporate events. They maintain strong personal contacts and relations with the growers and procure cut and loose flowers in bulk before the big festivals like Durga pooja, Diwali, New year, and Valentine day etc. In case of any events like marriages, receptions and decorations they prefer buying from retailers and wholesalers. So they produce either from wholesaler or retailer depending upon the seasonality and demand. As per our discussion with the event manager the total average requirement of flowers during a marriage is mentioned below in the table 2. These figures may vary from season to season but almost 7-8 months of the year the event managers are very busy in procuring the flowers for various events. 9

10 Type of flower Marigold Gerbera Roses Carnation Arcade Asian Lillium Requirement 30 kgs bunches 25 bunches bunches 10 bunches 6-7 bunches Naga Shiva (Event Manager): My business is based on house hold and hotel contacts so where when there is a ceremony, celebration, and festival I take up the responsibility of decoration management in the respective places. Major demand comes from big hotels in Hyderabad followed by marriages but we face a tough competition due to many players in the market, lack of proper supply and poor quality of cut flowers. During peak seasons we pay double the cost for all the flowers due to high consumer demand because their satisfaction plays a major role in the entire business. Verbatim of an event manager in Hyderabad 6. DEMAND ASSESSMENT IN HYDERABAD CITY As understood from the market players, the flower market of Hyderabad exhibit strong seasonality in demand. The marriage season acts as the most important driver of demand for flowers throughout the year. The other important period contributing to escalation in demand are festivals and events like Navratri, Christmas, New Year, Valentine Day, Mother s day and Father s Day because of this, price at consumer level generally increases from December onwards till March and then start declining and is lower during the monsoon period of June August. Based on the quick study and interactions with various players an attempt is made to assess the demand in the Hyderabad city, for the cut flowers especially Gerbera and Carnations. The important consumption points of cut flowers are as follows: i. Decoration of the venue of functions such as marriages, birthday parties, engagement ceremonies, Cradle ceremonies, anniversary functions, inaugurations, opening ceremonies, house warming ceremonies etc. ii. Hotel decorations both in the common areas and rooms iii. Bouquet & Garland making. iv. House decorations 10

11 v. Miscellaneous Of all the consumption points, it is experienced that the first category of activity will be demanding major share of the total requirement in the City. In view of affluence and raising standards of living, more and more functions are being organized in the city. The event under this category depends on the auspicious days according to the calendar events. It is assessed that the number of events that occur on a very auspicious day may even exceed 2000 in the city. There were reports in the press that such volume of events happening in the city caused traffic jams on certain occasions. To be on conservative side it is taken that there would be on an average about 750 events happening in the city on any auspicious day. Since the auspicious days are fixed according to the Telugu calendar, an attempt has been made to arrive at the number of auspicious days in the coming 12 months starting from August. In addition to this there are major festival events happening around the year. The details of the auspicious days during which the demand for cut flowers will be maximum and the important event days during the 12 months period are given in Annexure IV. It may be seen that about 180 days in a year will be auspicious or during which some event or function or celebration happen in the city. Though the consumption of cut flowers on each of these events will not be same, an assessment is attempted to work out the average consumption of cut flowers of different kinds in an average function or event. The number may vary from function to function and type of event. However, based on the interaction with the event managers it is ascertained that on average 300 bunches of gerberas and 70 bunches of carnations are used in an event in addition to some other flowers. Based on these assumptions the total demand is worked out for the two cut flower types that are most widely used. Of course, in addition to these two types of flowers other kinds of flowers are also used in the functions. An estimation is made based on the information detailed above is given in table below: 11

12 Domestic Demand Estimation of Gerbera and Carnation cut flowers in Hyderabad City Particulars Number of auspicious days per year during which maximum functions take place Average number of events happening in the City on each of the auspicious days Average consumption of flowers per event Total demand Combined demand Units Number of bunches of ten stems each Number of bunches of ten stems each Total Estimated demand Gerbera Carnation Table 2: Demand estimation of major cut flower in Hyderabad 7. PRESENT SUPPLY IN AND AROUND HYDERABAD CITY Currently there are around 177 green houses 4 in and around Hyderabad. The standard size of each green house adopted by farmers is 1000 sq.mts. Among all the cut flowers the major flowers grown in this area are Gerbera, Carnations, and Roses because of the suitability of the climate and geographical conditions. Among these, Gerbera is cultivated in majority of the green houses followed by carnations and Roses. Based on the information available, an attempt is made to arrive at the demand supply gap of Gerbera and Carnation in the vicinity of Hyderabad. 4 Source: Horticulture department, Hyderabad. 12

13 The details are depicted in the table given below. Demand & Supply Gap Estimation of Gerbera and Carnation cut flowers in Hyderabad City Units Total Estimated demand Particulars Gerbera Carnation Number of Green houses around Hyderabad City 1000 Sq.m Production in an year Total Production Total demand Demand Supply Gap Number of bunches of ten stems each Number of bunches of ten stems each Number of bunches of ten stems each Number of bunches of ten stems each Extent of demand that is proposed to be met Average production in an year Area that can be supported to meet the local demand 75% Bunches per Ha Ha Table 3: Demand and Supply gap estimation for major cut flowers As seen from the above, there is a huge demand supply gap and presently it is being met by importing from neighboring States or from other countries. Based on the demand supply gap, the extent of green house area needed to meet 75% of the gap, has been worked out. This is only related to Hyderabad City and surrounding places. The total State requirement will be totally different. Similarly if the export promotion is taken up, this area will increase many fold depending on the feasibility. Since Shamshabad, International Airport is operational; it is advisable to promote exportable flowers through the green house cultivation. 13

14 Other important source of demand for cut flowers is hotels and office decorations and bouquets. As per the information given by yellow pages there are around 926 hotels with in Hyderabad and Secundrabad together out of which the chain hotels are 307. As per the conversation done with the event managers the average total number of marriages happened in Hyderabad during Jan 2012 to May 2013 were more than 1.5 lakh which shows that there is a great scope of cut flower consumption in the district. Based on the estimates worked out above it is assessed that there is scope for expansion of cut flower production in and around Hyderabad city as follows: Gerbera 127 Ha Carnation 549 Ha The Department of Horticulture, Government of AP may accordingly take up the expansion with a view to meet just the domestic demand. If exports are promoted, this expansion will be much more and farmers can be greatly benefitted from this commercial activity. 8. SUPPLY CHAIN IN FLORICULTURE While analyzing the demand and supply situation of major flower categories in and around Hyderabad city, some insights have been drawn on the supply chain of flower trade. Supply chain consists of input supply, production, post-harvest management, storage, transportation, processing, distribution and marketing. From production to final consumer reach there are many players involved who play a vital role in fulfilling the supply chain functions such as aggregation, transport, storage, wholesale retail etc. Some of the important players being: Growers/ Farmers/ Green house owners Commission Agents/aggregators Wholesalers Bulk consumers Florists and Traders/Retail traders Corner stores Retail stores Event Management companies As seen from the demand supply gap estimates the city imports majority of the flower volumes consumed. Generally the cut flowers such as Rose, Gladiolus, Carnations, Tuberose, Gerberas, Anthuriums, Lilium, and Orchids are imported from the adjacent states/ countries. 14

15 In Hyderabad Gudi Malakapur is known to be a hub of wholesale market for flowers where all the flowers are imported/ procured and distributed to retailers, wholesalers, government organizations, and event managers etc. In case of loose flowers, there is generally no intermediary involved at the primary level of marketing and the growers themselves market the produce at the wholesale market. In case of cut flowers only big traders are involved who import the flowers from various places and run the business. High FARMER Low Commission Agents Flow of Commodity Wholesalers Flow of Money Retailers Fig 2: Supply chain of cut flowers from farmers to end consumers. Low Consumer High Floriculture market being unorganized the role of middlemen or commission agents creates a huge impact on domestic trade and farmers. It is observed that two third of the growers supply to the commission agents on the basis of familiarity. In the wholesale market of Gudi- Malkapur, Hyderabad 10 retailers and 10 wholesalers were interviewed and mapping of supply chain was done which is shown above in fig 2. It shows the flow of commodity from the farm gates till the end customer. Because of the involvement of many players, and shorter life span the prices of the flowers has become very volatile. There may be variations in the chain as in some cases farmers try to supply directly to the other stakeholders and consumers. However, this is very limited in scale. As may be seen from the supply chain analysis, there is good scope to shorten the supply chain by providing appropriate market infrastructure and information at appropriate time. There can be a web based portal for connecting the farmers and the final consumers or retailers. Below 15

16 mentioned are the direct talks of various stakeholders during face to face interview at Gudi Malkapur, Hyderabad. This shows that there is a great scope of cut flowers within the Hyderabad City which needs a strong platform (organized market) and infrastructure for availing better prices by poor farmers. 9. SWOT ANALYSIS As we can see that the floriculture can be a profitable occupation and it can commercialize agriculture. Promotion of floriculture in and around the Hyderabad City. However, a quick analysis of the sector it is observed that the commercial floriculture has tremendous scope in Andhra Pradesh. A SWOT analysis can better depict the situation as given below. Strength The state has diverse agroclimatic conditions with scope for culture of diverse flower types. There is scope for a good network of nurseries for producing planting material. The farming community is dynamic and enterprising. There has been a spread and prevalence of new high tech technologies. State government support to the flower growers through various schemes and policies. Huge demand supply gap in the State that can support expansion of area under green house floriculture. Opportunity There is an increasing demand within and outside the country. Many districts around Hyderabad have congenial conditions favorable for floriculture. GOI in association with state government promotes and facilitates the setting up of Agri Export Zones (AEZ). Weakness The seed and planting material industry is relatively weak. Majority of local farmers are dependent on loose flower production as cut flower production is price sensitive. Present trade is still in infancy stage. There is a lack of post harvest management facilities like cold storage, pre-cooling and processing units. The marketing channels are not well developed. Threat Infrastructure inadequacies. There are wide fluctuations in the market prices due to supply gap. Price discovery mechanism does not exist. 16

17 Large barren / rainfed areas can be utilized for promotion of floriculture. 10. CONCLUSION Floriculture sector provides a great scope for self-employment and earning foreign exchange among small and marginal farmers. There are many farmers who are cultivating loose flowers mainly for domestic purposes. The study indicates that there is demand supply gap that can enable to expand the area under green house cultivation both under Gerbera and Carnation. Since the demand is likely to increase in the near future, the State can support the farmers to grab the demand. The demand for new area is depicted given below. Gerbera 127 Ha Carnation 549 Ha The above estimates are only for meeting the demand of Hyderabad City and its surrounding urban areas. If the total State is taken this will be much more. If exports are promoted, the area expansion can be much large and this commercial floriculture can really transform the farmers livelihoods in the state. However, the study is only a perceptional and on limited interactions. There is an urgent necessity for a detailed study to assess the demand supply gap for major cut flowers and also to identify the suitable areas for taking up extensive cultivation all high value flower crops. The future initiatives needed to be taken for strengthening the industry are briefed hereunder. 1. There is an urgent necessity for a detailed study to assess the demand supply gap for major cut flowers and also to identify the suitable areas for taking up extensive cultivation all high value flower crops. The study can also give insights on the further measures to be taken to make it long sustainable activity for improving the livelihood of the farmers. 2. Addressing the supply chain deficiencies and creating required infrastructure both at the farmers end and at the market level. 3. Creating e-platform for linking the farmers with the ultimate consumers. 4. A plan to expand markets outside the traditional markets by adopting customized marketing strategies. 5. Promoting a strong brand for cut flowers and flower accessories through designated outlets at the foreign markets, and advance product positioning in these markets would help domestic flower exporters to compete in international markets effectively. 6. Better infrastructural facilities need to be set up in the district for good storage and transportation of cut flowers. 7. Standards must be set for grading, packaging, transporting, quality control and market development and farmers must be made aware of these standards so that our products are easily recognized and accepted in foreign countries. 8. Extensive capacity building to farmers and entrepreneurs. 17

18 Annexure 1 GOVERNMENT POLICIES SUPPORTING FLORICULTURE The exports have rolled an impressive growth from Rs crore in to crore in With this growth of floriculture in India the Government had contributed a lot in physical planning, infrastructure creation, tax legislation and policies in respect of export oriented floriculture units through its various ministries and also released lots of subsidy related schemes through its specialized bodies like NHB, NABARD and APEDA. NABARD gave refinance facilities to banks and financial institutions i.e. State Co-operative Banks, commercial Banks, and State Agricultural Development Finance. To lessen the farming woes of farmers, NABARD has launched a new scheme that encourages banks to give post harvest loans. Farmer who sells their produce very cheap soon after harvest due to lack of working capital and for repaying crop loans can now aspire for low cost loans. About crore farmers in the country having Kisan Credit Card (KCC) are eligible for availing these loans. This new initiative by NABARD allows banks to provide loans at lower interest i.e. 7% where as earlier banks used to charge 15-17% which was expensive for farmers. National Horticultural Board (NHB) was set up by the Government of India in 1984 as an autonomous society under the Societies Registration Act It has given support through various programmes to develop floriculture in the state. The following are the list of schemes administered by NHB. Development of Commercial Floriculture through Production and Post Harvest Management of floriculture crops. Capital Investment Subsidy for construction/expansion/modernization of green house set up for Floriculture Produce. Technology Development and Transfer for promotion of floriculture. Market Information Services for floriculture crops. Floriculture Promotion Services. Agriculture Produce Export Development Agency(APEDA) is a central agency that foresees growth of the floriculture for export purposes and provide both technical, infrastructural and financial assistance to the entrepreneurs and farmers. APEDA has taken several, measures for the development of the industry, which includes the following: APEDA is implementing Special Floriculture Fund Scheme for revival of sick floriculture units. Under the scheme, interest free loan is provided to the floriculture units for settlement of their outstanding dues with financial institutions. APEDA has set up flower auction centers at Bangalore, Mumbai and Noida for higher price realization to the growers / exporters. 18

19 Centers for handling Perishable Cargos (CPC s) have been set up at major exit points like airports. APEDA is providing airfreight assistance (20% of FoB) to cut flower exporters to mitigate the high freight costs. APEDA has sanctioned a number of different Agri Export Zones (AEZs) in the Southern Region, which includes Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. APEDA encourages agriculture certification. This certification could be either in the form of Good Agricultural Practices (GAP), Good Manufacturing Practices (GMP), ISO 22000, HACCP or organic certification. Promotion of export oriented production and development of the scheduled products. Fixing the standards and specifications for the scheduled products for the purpose of exports. Development of infrastructure, services and post harvest infrastructure. Packaging development and export promotion and market development. Duty free imports on certain components of green house structure. India is becoming a strong centre of commercial floriculture in the international market. In the last one decade, there was a great surge in the floricultural activity with the production of flowers (cut and loose), ornamental plants (potted and cut-greens) and dry flowers (value added products), besides marketing. Despite commendable growth in the floriculture sector, still India s present contribution in the global floricultural export market is negligible (about 0.6%) as compared to other foreign countries in the world. 19

20 Annexure II Diversity of flower trade and Seasonality in India Floriculture products mainly consist of cut flowers, potted plants, cut foliage, seeds bulbs, tubers, rooted cuttings and dried flowers or leaves. But in India it is concentrated majorly in two ways cut and loose flowers production. Cut flower production has a long and distinguished history. From amongst the wide range of flowers, only certain type of flowers are grown as cut flowers because of their special features, particularly long stem or stalk. Hence mainly rose, carnation, gerbera, gladiolus, tuberose, anthurium, lilium and orchids are cultivated in India. CUT FLOWERS Rose -- Major cut flower in India is Rose which is grown all over the country. The larger percentage of the area in many states is used for growing scented rose. In recent times, with production for export gaining ground in the country, the latest varieties like First Red, Grand Gala, Konfitti, Ravel, Tineke, Sacha, Prophyta, Pareo, Noblesse. Virsilia, Vivaldi etc. are also being grown commercially. These varieties are majorly grown in Bangalore and Maharashtra. Gladiolus -- Gladiolus is the next most important cut flower in the country. Earlier it was considered a crop for temperate regions and its growing was restricted to the hilly areas, but with improved agronomic techniques and better management it is grown in hilly regions of the country also. Orchid -- Its production is restricted mainly in the north-eastern hill regions, besides parts of the southern states of Kerala and Karnataka. The main species grown are Dendrobiums, Vanda, Paphiopedilums, Oncidiums, Phalaenopsis and Cymbidiums. Carnation -- Carnations are also commonly referred to by their scientific name, "Dianthus", the name given by the Greek botanist Theophrastus. Carnations are also known as the "The Flowers of God". Carnation cultivars are mainly of three types: Large flowered Carnations - one large flower per stem. Spray Carnations (Mini Carnations) - with lots of smaller flowers. Dwarf flowered Carnations - several small flowers on one stem. Tuberose -- Tuberous begonias grow best in midday and afternoon shade; otherwise the foliage will scorch. They need rich, well-drained soil. Gerbera -- The crop can be cultivated throughout the year. Harvest starts from 3rd month of planting and continued up to two years. They are economically important flower plant and flowers are widely used in stage decorations for various functions and celebrations. Hence 20

21 Gladiolus Orchid its demand is very high and it ensures maximum returns comparatively. It is a leading cut flower produced in Andhra Pradesh followed by Carnations. Lilium- It has round the year market unlike weeding seasonal flowers, but the high market is in September and peaks are from December to February. It takes three months for the flower to grow and ready for harvest. There are two types, one is Asiatic and Oriental Lilium, among which the later one is costlier than the former. Anthurium- Anthurium is a crop requiring high humid conditions. It can be cultivated in open as well as in green house. Anthuriums are of two types tropical and temperate. Rose Orchid Gladoilus Lilium Anthurium Carnations Tuberose 21

22 LOOSE FLOWERS Chrysanthemum Chrysanthemum is one of the oldest cultivated garden flower crop which ranks probably next to Rose. There is hardly any other garden flower which has such diverse and beautiful range of colour, shapes and height. It has been recognized as one among the five important commercially potent flower crops. Rose From ancient times rose has been cultivated in our country. But recent years its cultivation has become very extensive and commercial. In modern age, its importance bas become still greater because rose breeders have been increasing its range of colors while at the same time adding valuable characters like disease resistance and a longer period of flowering. It is a versatile plant and the fantastically large number of types available is one of the reasons for its great popularity. The climatic conditions of India are well suited to its cultivation. Roses need bright sunshine and free ventilation. Indian Jasmine This flower is known to have its religious importance in India. It is grown all over the country but very popular in south India as it is used for offering to god and put on hair as well. It is also believed that the sweet smelling flower have a refreshing effect on the mind and soul of the human body. Generally it is grown in the month of April and May in South India. Basically only three major species of jasmine are known for commercial cultivation. They are: J. grandiflorum J. auriculatum J. sambac Crossandra They are commonly seen in subtropical and tropical areas. It is not fragrant but its spectacular colors and light in weight, makes it a popular for decorations. It is most easily available flowers all the time since it is easy to grow. Crossandra is one of the important flowers used for adornment and banquets. Golden Champa Golden Champa is an evergreen tree and mainly cultivated for its strongly fragrant yellow or white flowers They are primarily used for worship at temples, floated in bowls of water to scent the room, as a fragrant decoration for bridal beds, for garlands, in religious ceremonies and generally worn in hair by women as a means of beauty ornament as well as a natural perfume. A yellow dye is extracted from the flowers and is used as a base for other colors. Marigold Marigold flowers are sold loose and in the form of garlands, which are usually made close to where the crops are grown. Much of what is produced is consumed in India. They are highly perishable and hence the producers don t carry the flowers to a long distance rather it is grown in and around major cities of India. There are two major varieties of marigold: 22

23 African Marigold and French Marigold Chrysanthemum Rose Indian Jasmine Crossandra Golden Champa Marigold Almost all the loose flowers are cultivated in open fields while majority of the cut flowers are grown in green houses for commercial purpose. The requirement of planting material to cater to the large area under flower crops is largely met from domestic production. In the absence of any mechanism to register nurseries, it is very difficult to ascertain their exact number, but at a very conservative estimate there are more than 180,000 nurseries, spread out all over the country, producing seeds and other planting materials for flower growers. The states with larger numbers of nurseries include Maharashtra, West Bengal, Karnataka and Tamil Nadu. 23

24 The following are the planting and flowering timings followed for cultivation of cut and loose flowers in different agro climatic zones of India. Crops Agro climatic Low Hills Mid Hills High Hills Zones Gladiolus Planting Time Jul-Aug. Feb-Mar Apr-May Sept-Oct May Flowering Time Nov-Mar May-Oct July-Nov Marigold Planting Time Sept-Oct Jan-Feb May-June Flowering Time Mar-April Jun-Jul Oct-Mid Dec Carnations Planting Time Sept-Nov Jan-Feb Mar-Apr Oriental/ Asiatic Lilium Flowering Time Feb-Mar Apr-June July-Oct Planting Time Dec-Mar Mar-Apr Apr-May Flowering Time Mar-Jun June-July July-Aug Chrysanthemum Planting Time Apr- May Jan-Feb May-July Flowering Time Sept-Oct Jun-Jul Oct Tuberose Planting Time Apr-March Gerbera Planting Time Cultivated throughout the year. Flowering Time Harvested throughout the year. Orchids Planting Time Spreads throughout the year depending on variety of flower. Anthurium Flowering Time Except April & May Flowering happens throughout the year depending upon the variety of flower. Rose Planting Time Cultivated throughout the year. Flowering Time Harvested throughout the year. Crossandra Planting Time Planting is suitable for any time of the year. Flowering Time One month after planting till 3 years. Indian Jasmine Planting Time Early spring is considered the best time. Flowering Time Blossoms during peak summers. Golden Champa Planting Time Early spring is considered the best time. Flowering Time Majorly during summers. 24

25 Annexure III USE OF GREEN HOUSE Floriculture is one of the growing farm business sectors in India and greenhouse cultivation is of recent origin and is being increasingly practiced for production of quality produce for export. In and around Hyderabad many green houses have been started (at a distance of 40 to 60 kms) in various mandals in last 3-4 years. Today flower farmers are getting decent price for their flowers. But diseases and attacks from pests are main challenges for farmers. These issues decrease the quality of the flowers and forces farmers to spend more money for chemicals and pesticides. Seasonal climate changes and quality of irrigation water are few of the major challenges which is faced by the farmers now a days in Ranga Reddy District. Greenhouse floriculture is a complete solution for such issues. The important floricultural cut flower crops grown in green houses are Rose, Carnation, Chrysanthemum, Gladiolus and Gerberas etc. The open field crops are chrysanthemum, Crossandra, Roses, Gaillardia, Marigold, Aster, Tuberose etc. The advantages of the Green house technology are as following: Controlled temperature, humidity and other factors causing damage to the plants. Higher yields and higher quality. Possibility of off season production and therefore consistent supply of flowers to the market possible. Plant growth rate and lifespan is very high because of controlled conditions. Cost effective. More exports and foreign exchange. In Hyderabad the climatic conditions doesn t permit the production of cut flowers for commercial purposes while the places like Bengaluru, Pune, Satara, Sangali, North east and Northern part of India are well suited for the commercial production without any green house. This is due to various reasons as mentioned above which can be addressed to a great extent using green houses. In Ranga Reddy District more than 150 farmers have established green houses as of now but maintaining under uncontrolled conditions due to shortage of power supply and high maintenance cost. Maintaining the green houses requires electricity for balancing the standard temperature and humidity levels for better production of flowers. Hence it is beyond the level of small and marginal farmers unless a strong and in time support and guidance is given to the farmers. 25

26 Annexure IV MAPPING OF DAYS FOR DEMAND OF FLOWERS (Aug 2013 July 2014) Occasions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Festivals and Rituals Ramzan 9 th Nag Panchami 11 th Independence Day 15 th Parsi New Year 18 th Raksha Bandhan 20 th Krishna Janmashtmi 28 th Ganesh Chaturthi 9 th Onam 16 th Pitru Paksha 20 th 4 th Gandhi Jayanti 2 nd Navratri 5-13 th Durga Puja 11 th Dusshera 14 th Bakri Id 16 th Lakshmi Puja 18 th Valmiki Birthday 18 th Karwa Chauth 22 nd Dhan Teras 1 st Diwali 3 rd Govardhan Puja 3 rd Bhai Duj 5 th Chhat Puja 8 th Muharram 14 th Kartik Poornima 17 th Guru nanak Jayanthi 17 th Christmas 25 th New Year 1 st Lohri 13 th Sankranthi 14 th Id Milad 14 th Republic Day 26 th Vasanth Panchami 4 th Valentine s day 14 th Maha Shivratri 27 th Holika Dahan 16 th Holi 17 th 26

27 Ugadi Rama Navami Mahavir Jayanthi Baisakhi Ambedkar Jayanti Good Friday May Day Buddha Purnima Jagannath Rathyatra Id Ul Fitr Marriages Events /Functions /Celebrations 31 st 8 th 13 th 14 th 14 th 18 th 1 st 14 th 29 th 29 th 27

28 Auspicious days calendar for the coming 12 months that can have demand for cut flowers. Month/Auspicious dates Aug 18 Sept 12 Oct 13 Nov 21 Dec 18 Jan 2 Feb 14 March 15 April 10 May An Average figure has been considered as exact dates for auspicious 10 days are not available June 10 July Total no of auspicious days Total This include the total number of days under auspicious days, festivals, rituals, events, and celebrations etc