CHAPTER-I

1.1 GENERAL INTRODUCTION

In the world where a person speaks different languages and have

various dialects with their colorful and beautiful shaper, Flowers can be

unifying language for our world. A flower has been highly regarded by men

and women alike. In world where population remains constantly in those

tensions resulting from the severe conflict over materialistic acquisitions it is

trapped in conditions disputes over earning their living. Flower came to

alleviate our penuries and invest life with fragrance.

Flowers are being cultivated in India time immemorial Backyard

growing of flowers dates Bach to ancient time like. In Ramayana and

Mahabharata Flowers were cultivated from aesthetic purpose as also for

their fragrance, Perfumes and extraction of medicines and Gulcan.

Changing life style of people has led to the commercialization of

flower cultivation. The huge demand for flowers concerning with various

occasions has led to growth of market for flowers. As on date, flowers

cultivation has attainted industrial status. Flowers have been intimately

associated with the Indian culture. AS an industry, it has had a late

beginning.

1
 Flowers trade in India is flourishing as many research center, and

special nurseries have turned into promoting business. India had a good

change of occupying a prominent position on the international map in this

business. The growth for is the fact that it enjoys of bright sum for a long

period through out the year and it has diversity of weather and geographic

conditions over a vast area of land. There has been a significant increase in

foreign investments and collaboration in this sector with the liberalization of

economic industrial trade policies. Government identified floriculture as a

major thrust for export. Floriculture is fact emerging as a major venture.

APEDA a specialized body of the government had played an important role

in introducing various schemes. Flower trade has recently gained a

constantly increasing ground. Planting decoration flower has turned into a

portable trade in many places in the world. Flower and plants have become

an integral part of human living. Besides their aesthetic importance, they are

useful in improving the quality if life. Ornamental rolled in environment

planning of urban and rural areas for abatement of population social and

rural forestry Westland development, a forestation and landscaping of

outdoor spaces also has a potential for export trade.

2
1.2 INTRODUCTION TO THE STUDY

Flowers and garden have been closely associated with the Indian culture

from pre – historic times. Their descriptions have been found in ancient

Sanskrit classis, like the Rig Vend (3000 – 200 B.C), Ramayana(C1200-

1300 B.C), and Mahabharata ( Prior to 4th Century B.C) and in Sanskrit

writing by Shdraka (100 B.C.), Ashvagoda ( C 100 A.D.), Kalidasa ( C 400

A.D) and Sarangdhara ( C1200A.D).

Earlier introduction of flowers into India

Many of the important flowers that are abroad During the Mugal

period, Babar (1526 A.D.) introduced the Danasi rose from Persia and later

(1619 A.D) Jegangir brought china weeping willow, and cypress trees and

rose, carnation, likes lilies and tulips. With the establishment of several

important Botanical Garden by the British rulers during 18th and 19 th

centuries, many beautiful flowers, plants, seeds were introduced. The

famous Batank Garden established where the Lalbagh Botanic Garden,

Bangalore (1760), the Botanic Garden, Sharapur (1779), and the Botanic

Garden Ootacamund (1884) are some of them.

3
Places of export

According to one estimate 65000 hectares of land is under

floriculture, which include traditional flowers, and modern floriculture. The

major flower growing states on India are Karnataka, Tamilnadu, Andhra

Pradesh, Maharastra and West Bengal. The major exporting countries

from India re Netherlands, USA, Germany, France, UK, Switzerland, Italy,

Japan and Australia.

Flower preferred in exports

At present, the world floriculture trade is estimated to be around $50

billion that includes cut flowers potted plants, foliage, cut blooms, assumed

culture plantlets and other floral parts. It is increasing at the rate of about 10

to 15% every year, out of all the flowers, Roses account for a maximum to

scientific cultivation of Lilium Roses, Gerbera, Anthurium Gladiolus and

orchids,

Split up of flower

Flowers are used for interior decorations, valentine gift, to welcome,

celebrities, wedding, special occasions and for funerals. It is also used as an

offering for God and Goddesses. It is also used to decorate Brides hair for

4
marriage occasions. It is also used for making various types of medicines,

scents of various kinds etc.

1.3 OBJECTIVE OF THE STUDY

The main objective of the study is to investigate the India’s

Position in the international flower markets.

 To study the trend in the Indian flower exports.

 To access the supply and demand for flower around the

International market

 To analysis the problem and prospects.

 To find out financial facilities available for flower exports.

1.4 SCOPE OF STUDY

The researcher took up the study in the area of export of flowers from

India, because flowers and garden have been closely associated with the

Indian culture from pre – historic times. The study tries to envisage the

details about Indian floriculture industry which being gradually increasing in

the present days. The study also help as to know about various hidden

secrets about Roses and Carnations floriculture as an industry in India has

grown very rapidly in the last decade both for domestic and export markets

5
from good old days to offering and exchange of flowers on all occasions of

joy and sorrow, their use in places of worship, for adornments of hair by

human and in home decoration have become an integral part of human

living. These things interested the researcher to make study about export of

flowers from Indian.

The topic also gives as the details about the expanding market for the

flowers from India to European countries and U.S.A. it also propagation, soil

preparation and planting, watering, disbudding, fertilizer application,

chemical treatment, ventilation, green house structure irrigation system.

1.5 METHODOLOGY

The researcher has chosen the states of Tamilnadu, Karnataka for the

purpose of collection of data specifically the hills station like Nilgiris and

Kodaikandal are taken for obtaining details of floriculture propose of

propagation, planting, Green House Structure, and Irrigation system.

The researcher has chosen the above said areas for the purpose of

collection of data has utilized the secondary data collected from Journals,

Magazines and Websites were referred newspapers etc., for bring up the

report.

6
Statistical tools Used

The following statistical tools used in the analysis of the collected data.

1. Simple percentage analysis

Percentage is used to analysis the annual growth rate has been

calculated by the following formula

Value X 100
Total Value

2. Least square method

This is the statistical tool, which is used to find the trend value of
particular field, the formula used is

The equation is used to determine “a” and “b” as

∑y
a=
N
b= ∑xy
∑x2

Substitute the value of “a” and “b” in the straight – line trend equation
Y= a + b (x)

7
1.6 LIMITATION OF THE STUDY

The basic information of the study was the difficulty in getting basic

first hand information. The major sources are obtained from secondary data.

The second major Limitation is that any of the workers are illustrate and do

not know anything specific about the value of flowers and its cost and

important therefore interviewing them for the purpose of data collection is a

difficult task. These were the illustration, which were noted by the

researcher during the study.

8
 CHAPTER-2

2.1 FLORICULTURE INDUSTRY

India has wide range of climate and soil conditions, which enable

cultivation of an array of horticultural crops such as fruit, vegetables,

floriculture plants, plantation crops, and spices, medicinal and aromatic

plants. Over the past one decade, the sector has emerged as a viable

diversification option for generating large foreign exchange earning. In the

present and emerging agriculture scenario, there is a vast potential for

several horticulture – based industries/ if we increase the productivity of the

floricultural inputs needed for these industries, it is possible not only to fully

meet the present and growing demands; but also to export substantially to

the world market.

In world marketing, Indian floriculture industry is witnessing an

unprecedented growth and increasing acceptability. A number of corporate

house have entered the fray in the last three to five years in growing flowers.

The world market in floriculture is estimate at US $ 50 billion. The

floriculture industry is growing at a rate of 17 percent per annum. The

consumption of ornamental and flowering plants are generally bay the

affluent class of the society. Higher standards of livings and growing desire

9
to live in an environment friendly atmosphere have led to an increasing

demand for floriculture in India.

The export of cut flowers identified as thrust area at the national level.

The estimated area under flowers in India is 65,000 hectares, the major

states being Karnataka, Tamilnadu, west Bengal, Andhra Pradesh and

Maharastra. Traditional flowers, such as marigold, jasmine, chrysanthemum,

China aster, crossandra and tuberose, usually under marketed looses, occupy

nearly two thirds of the area, the rest being under contemporary flowers such

as rose, gladiolus, carnation, tuberose and orchids used in bouquets and

agreements.

Dried flowers and plants have a two third share of this market,

followed by cut flowers (17 percent) and live plants (13percent). The South

Indian floricultural Association (SIFA) informed that for the first time, India

has managed to make its dominant presence (60 percent) in the Australian

Market. After the first phase of trebles and turmoil, the second phase is

taking India into more competitive market like Japan, Australia, and Taiwan.

10
 Last year, India successfully challenged Holland in exporting rose to

Japan (85 %)

Leading countries in floriculture in the world, the leading exporting

countries in floriculture are Netherlands Columbia Italy Israel and Kenya.

Floriculture Activity, defined for the purpose of this report as

consisting of Cut flowers cultivated under controlled conditions mainly for

export is growing in the world at around 6-10 percent per annum. This is

support by the demand in the developed countries of Europe, America,

Austria, Japan and Singapore. The climate condition in most of theses

countries does not favor year around cultivate Gerbera inside the greenhouse

on these flowers and many of them import flowers from other countries.

The major importing countries of Cut flowers are Netherlands, UAS,

Germany, French, UK, Switzerland, Italy and Japan. The major exporting

countries include Netherlands, Columbia, Ecuador, Israel, Spain and Kenya.

Being a major market for floriculture, Netherlands both imports and re-

exports the flowers. The most important flower traded in the international

market is still Rose, however other like Chrysanthemum, Carnation,

11
Gerbera, Dahlia, Poinsettia, Orchids and Lily etc., are also marketed in large

quantities in these countries.

In spite of a long tradition of Agriculture and Floriculture, India’s

share in the international market for these flowers is negligible. During the

last ten years, taking advantage of the incentives offered by the Government,

a number of Floriculture units were established in India for producing and

exporting flowers to the developed countries. Most of them were located

near Mumbai, Bangalore and Delhi and obtained the technical know-how

Mumbai from Dutch and Israeli Consultants. Almost all of them were capital

intensive and made large investments in greenhouse and other infrastructure.

Several of them are at present non – working. The major reasons for their

failure were lack of experience, inadequate research support, inadequate

market knowledge and infrastructural and procedural problems.

Enable theses units to function more efficiently and competitively and

to increase the volume of India‘s exports. It is necessary to orient this

activity, whether it is catering to local demand or to the international

demand, as an agricultural activity and not as an industry. The only

difference between Agriculture and Floriculture is that the latter uses high

12
technology like poly-houses and refrigeration. However, quite soon, the

technological inputs in the entire Agricultural activities will have to be up

grade and modernized on lines that are more scientific. By declaring

Floriculture as Agriculture, we will not only take a logical step, but also

we will ensure it certain benefits like income tax relief and will free the

growers from many procedural hassles and unnecessary regulatory

provisions. The second most important step will be to encourage a

“consortium: approach among the units for branding, grading, packaging,

transporting, quality control, supply assurance, market development, market

promotion, and research and development. For this purpose, it is necessary

to encourage some of the successful and experienced entrepreneurs to take a

lead in forming such concern. They can also develop satellite farms and

operate the existing closed or semi-closed units with a suitable waiver or

postponement of their liabilities. This would also necessitate the relief from

Land Ceilings Act.

The other measures includes more focused attention on the locations

near Mumbai, Bangalore and Chennai airports, encouraging establishment of

viable units of around 7-15 Ha, a very linkage between governments,

research institutions and flower growers, assistance for market development,

13
provision of infrastructure ( which is extremely critical for Floriculture),

reduction in air fright charges, reduction on interest rates by Banking

institutions, waiver of excise duties on domestic sales and very focused

research on key areas. Training and work force development is also another

important area, which will assume critically in future. The use of

information technology and, particularly, internet for trading should also be

promoted.

2.2 INDIAN SCENARIO

The liberalization process initiated by the GOI has attracted several

multinational companies in to the horticulture sector like the floriculture and

processing of horticulture products. The export committee constituted by the

Govt has identified areas in and around Bangalore, Pune, New Delhi and

Hyderabad as the potential areas for establishment of export oriented

floriculture units.

India has vast potential for development of horticulture especially flower

fruit and vegetable cultivation because of the following distinct advantages.

• Diversified agro climatic and heterogeneous soil conditions

• Plenty of skilled labour at relatively low cost.

14
 • High irrigation potential.

• Round the year radiation

• Littler or no rains in winter

• Improving domestic market

• Location of the subcontinent to meet the needs of western,

eastern and Middle East countries.

• Govt acting as catalytic agent by declaring the sector as

THRUST AREA.

• Increasing cost of production in the developed countries.

Having assessed the potentialities several entrepreneurs started setting

up floriculture units under controlled conditions. Establishment SS of Hi-

tech floriculture units gained momentum during 1994-98. Since the

technology was very new to the Indian conditions majority of the units has

to depend on the imported technology as well as the raw materials like the

green houses, planting material irrigation equipments etc.

The consultants were mainly from Holland and Israel and to a limited

extent from France and USA. In India, the estimated area under flower

cultivation is roughly around 65000 ha. The major states are Karnataka,

15
Tamil Nadu, West Bengal, Andhra Pradesh, and Maharashtra. The

production is estimated to be around three lakh tones loose flowers and 500

million cut flowers.

Since the demand for quality, flowers cannot be met out of traditional

flowers nearly 75 export oriented floriculture units were established under

imported technology and green house conditions covering an area of 150 ha

have been set up around the major identified areas. The consultants advised

the growers about the selection of varieties their cultivation, maintenance,

harvesting, packing and marketing of flowers. Some of the units entered in

to buy back arrangements. The investment was made solely as per the

recommendations of these consultants.

Conductive conditions

India is endowed with diverse agro-climatic conditions like good

quality soils, suitable climate, abundant water supply, low labour cost,

proximity to market in Japan, Russia, South-East Asia, Middle-East

Countries.

16
 The Government allows subsidy on airfreight for export of cut flowers

and tissue-cultured plants. Freight rates are Rs.10 per kg for export to

Europe and Rs.6 per Kg for export to West Asia whichever is less.

Import duties have 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.

Direct subsidy up to 50 percent of the pre-cooling and cold storage

units is available, as well as subsidy for using improved packaging material

is given by APEDA.

Eleven-model floriculture centre units and two large centers, 20 tissue

culture units have been established by Ministry of Agriculture.

Refinance assistance is available from NABARD to a number of hi-

tech units at reasonable interest rate.

17
2.3 EXPORT CONSTRAINTS

In spite of an abundant and varied production base, India’s export of

floricultural product is not encouraging. The low performance is attributed to

any constraints like non-availability of air space in major airlines, since most

of the airline operators prefer heavy consignments.

The existing number of flights during the peak seasons is not

sufficient for export purpose.

Exporters for infra-structural problems like bad interior road,

inadequate refrigerated transport and storage facilities. Lack of professional

backup of delivery and supporting companies, which resort into high cost of

technology for Indian entrepreneurs.

Tedious Phytosanitary certification and an unorganized domestic

market. In order overcome these problems, attention must be focused on

Reduction in import duty on planting material and equipment.

18
 Airfreight should be reduced to a reasonable level. Sufficient cargo

space may be provided in airlines. Establishment of model nurseries far

supplying genuine planting material.

Co-operative florist organizations should be establishment at regional

level. Training centers for diploma course on the pattern of ITI for training

the personnel in floriculture should be set up. Exporters should plan

and monitor effective quality control measures right from production to post

harvesting, storage, and transportation. Analysis of strengths, weaknesses,

opportunities of the floriculture industry shows that India has immense

potential for export of floricultural products.

Though the global floriculture industry is growing comparatively at a

faster pace than in India, still a scope exists to bridge the demand and supply

gap.

19
2.4 DEMAND AND SUPPLY FOR FLOWERS

Both the supply and the demand for flowers in India are highly

seasonal. Flower prices fluctuate daily, price differentials exist between

markets and with in markets over the year. The variation in prices between

markets can be explained by supply (whether the local conditions permit

flowe5r production or if they must be transported from production centers

far away) and the demand for flowers.

Demand for flowers

The demand for flowers is also seasonal as it is in most countries. The

demand for flowers has two components: a steady component and a seasonal

component. The seasonal demand for particular traditional flowers for

religion purposes and ceremonies often matches seasonal availability. The

factors that influence the demand are to some extent different for traditional

and modern flowers and for the flowers used as inputs in industries.

20
Traditional flowers

The steady demand for traditional flowers comes from the use of

flowers for religious purposes, personal adornment, and decoration of

homes. This demand is particularly strong in the Southern states and West

Bengal, as the use of flowers is part of the local culture. The seasonal

demand comes from two sources: religion festivals and marriages. The

demand is generally for specific flowers.

Modern flowers

The demand for modern flowers also has two components, namely a

steady component and a seasonal component. The bulk of the steady demand

comes from institutions. The demand is concentrated in urban areas.

Although income plays an important role in generating this demand,

Westernization is crucial. The demand for modern flowers from the

consumers (individuals) is likely to grow enormously as the occasions,

which call for flower giving will continue to present them.

21
 Although there is an increasing demand for modern flowers from

individuals or household, institutions continue to be the dominant buyers in

the market. In Delhi, foreign nationals and the diplomatic community further

increase the demand for flowers.

2.5 TECHNOLOGY ASPECTS OF FLORICULTURE

Flowers needs well prepared soil with adequate amount of organic

matter, which improves the soil structure and helps the development of

plant. Before planting, the soil should be checked for the presence of pest

and disease.

Soil preparation and planting

Rooted cuttings after grading them based on the size and planted

uniformly. The roots should not be buried deeper than 12 mm, planting the

cuttings on May 20 resulted in well development of plants with good

flowers. A plant population of 32 cuttings is ideal for good yield and quality.

On the other hand, as spacing of 20 x 30 yields more per hectare.

22
Watering

Plant needs adequate during vegetative phase for new leaves to be

formed. After the formation of the flower bud, less watering is needed.

Training

Removal of terminal growing of stem is done and it is called pinching.

By doing so the plant height is reduced and promotes auxiliary branches.

Certain chemicals can also used instead of manual pinching.

Disbudding

The practice of removing immature undesirable buds. The correct

time and method of disbudding is an important factory in production of high

quality plant and blooms.

Weed control

Planting care includes the checking of weed growth and keeping

proper moisture condition of the soil. Shallow cultivation is done to

conserve the moisture and control the weed.

23
Fertilizer application

Basal application of Farmyard Manure of 15 – 20 tones, 25 kg. N, 40

kg. P2 05 and 25 kg. K2 05 should be applied per acre. After established

25kg. Of N, after bud formation again 25 kg. Of N, may be given as top does

sing.

Yield

The average yield of loose flower varies from 7.5 to 15 tones and it

varies from cultivars.

Grading

Cut flowers are graded into several grades depending on stem length

and strength, color and diameters of the flower. In British Markets, stem

length should not be less than 66 cm. If it is less than 51 cm, it is marked as

shorts.

Pests

The common pest of chrysanthemum is aphids, hairy caterpillar, and

red spider mite, root cutting grub, trips and nematodes. Controlled by

spraying monocrotophos 2ml/litre.

24
Green house structures

Green house cultivation is picking up to crop with the external needs

for flowers and to get quality production materials. In the years to come the

greenhouse cultivation will come to stay and will become a common house

name. Hence, it is necessary to popularize the green house technology

among the policy makers, Technologists and growers.

Ventilation

A means of exchanging air with the outside is needed to regulate the

temperature and humidity in the green house. The ventilator has to be

located at the top of the green house. In separate houses, the ventilators may

be located in the sidewalls also. The principle involved is that the hot air,

being lighter, rises and passes through the ventilator. Similarly, the cold air

from outside, being heavies, flows inside the glass house. This provides air

movement and temperature regulation in the green house. The ventilators

can be operated manually and can be located at every 30 meters. The fan and

pad method of ventilating and cooling green houses are popular in the west.

25
Irrigation system

Sprinkler irrigation, drip irrigation and mist blowing system are used

in the green house for irrigation. Heating system is not generally employed

in India. In the Niligiris condition, the lighter heating system can be

employed. In the fan and tube system, the heater may be provided near the

fan and the warm air will be distribution in the house.

Post harvest technology of cut flowers

Our country is growing different cut flowers in open as well as under

cover. Demand for cut flower is increasing at domestic and international

market. It is estimated that there is a 20% loss of cut flowers during harvest,

handling, storage, transportation and marketing. Careful handling,

temperature management, sanitation and use of preservatives can reduce

these losses. Cut Flower quality and longevity are influenced by pre and post

harvest practices. Some of the post harvest practices that affect the longevity

of cut flowers are discussed below.

26
Stage of development

The stage of development of flower at the time of cutting determines

its keeping quality and the display characteristics. The flowers must be

harvested at right stage of development, which varies with the flower and the

market outlet.

Grading and bunching

Damaged and diseased blooms should be discarded. Grading

procedures vary widely among growers and different countries. Many

growers have developed their own grading system and use them successfully

in marketing their flowers.

Pre-cooling

Precooking is the first step in good temperature management.

Precooking removes the field neat rapidly from the freshly harvested cut

flowers. There are several methods of precooking. Proper pre – cooling

reduces spoilage and maintains freshness of the flower for a longer time.

Room cooling or forced air-cooling does Pre-cooling.

27
Packaging

The Pre-Cooled flowers are packed to protect flowers during storage

and transportation. Different wrapping materials used for wrapping flowers

head should enhance display value of the flower. Packaging material for cut

flowers vary with the kind of flower and growers. The widely used

packaging material for cut flower export is a cardboard box.

Labeling

The grade designation, the growers identifications on the wrapping

material or on package enable the retailer or wholesaler to choose whatever

he wants without disturbing the whole consignment.

Storages

Flowers are stored for orderly marketing. Temperature and relative

humidity play a very important role during storage of cut flowers. Low

temperature reduces respiration, transpiration, enzymatic activity and

deterioration due to microorganisms.

28
Chemical treatment

Chemical preservatives are known to improve the quality and

longevity of cut flowers. Hence, use of preservatives is strongly

recommended at all stages of distributions. Ingredients use din floral

preservatives are water, sugar, minerals, germicides, organic acids and salts,

antioxidants, ethylene inhibitors, growth regulators and enzyme inhibitors.

These chemicals are used singly or in combination.

Transportation

Depending up to market distance, type of flowers and facilities

available, flowers are transported by air, rail, road and sea. Packages should

not be exposed to extreme temperature conditions. Prompt delivery of the

product is and important factor in reducing the post harvest loss.

Distribution

Flower marketing channel is producer-wholesale-retailer-consumer.

Commission agent may or may not be involved.

29
Production factors

New South Wales has a wide range of climates and soil types well

suited to cut flower production. Areas along the coastal strip are especially

suitable as they have a mild climate and summer rainfall. Most inland areas

have a drier climate, predominantly winter rainfall, and are often subjected

to winter frosts.

Inland growers should conduct comprehensive varietals trials to

ensure suitability for their region.

Effects of climate and location on growth and flowering are not fully

defined for all species. Some will not tolerate forests more severe than -4C,

Local trails are strongly recommended in order to establish the combination

of species to plant.

Any farm site selected for cut flower growing should have:

 Adequate quality water:

 Well-drained soil, with a pH from 5.5-7.0;

 Good access for machinery;

 Plantation sites that face north, north-east or east;

 Power for irrigation pumps, the cool room, and the packing shed.

30
2.6 INFRASTRUCTURES AND SUPPORT

Infrastructure requirements for a successful cut flower operation

include:

 Skilled lab our for crop management, picking, grading, bunching and

packing:

 Technical advice on production, post harvest treatment (exported

flowers may be transit and out of water for up to 50 days before

reaching the overseas consumer), and financial, marketing aspects;

 Adequate cool room capacity;

 Reliable supplies of quality planting stocks;

 Post harvest disinfest station facilities (may export destinations have

an intolerance for pests and disease);

 Refrigerated transport to market\airport where appropriate;

 Reliable fright forwarder;

 Reliable specialist exporter

31
2.7 LIMITING FACTORS

Cut flower production is a specialist, capital-intensive industry, and

careful consideration must by any investors. Factors, which limit

potential entrants to the industry, include;

 Expertise – entrants require some knowledge or staff with a

background in flower production;

 Capital – successful establishment of a viable cut flower operation

requires a high initial capital flow and commitment for a number of years

before returns are realistic. In recent times, rulings by the Australian Tax

Office have required growers to demonstrate more clearly the lead time

for a particular crop to become commercially viable;

 Market research – a detailed understanding of key markets is

crucial to exploits sales opportunities.

32
 Scientific data –because of the native flower industry’s infancy.

Data about the suitability of varieties to certain situations and regions is

patchy at best. More research needs to be conducted on potential new

areas and varieties;

 Economics of scale- while the industry has traditionally been

served by a number of small operations, some people believe the future

lies in larger producers with high capital and land investments who are

able to take advantage of the obvious economies of scale as well as

consistency of supply;

 Success rate – the industry has a traditionally low success rate of

new entrants. Due mostly to the factors mentioned here. Effective quality

management and marketing are extremely important.

33
 TABLE-2.1

S.NO COUNTRY PER POPULATION VALUE

CAPITA OF
CONSUMPTION (In millions) TOTAL
MARKET
1 Austria 108.00 8.32 898.56
2 Belgium Luxembourg 69.00 11.34 782.46
3 China 00.50 1206.60 603.30
4 Czech Republic 9.00 10.43 93.87
5 Den mark 86.00 5.60 481.60
6 Finland 69.00 6.02 415.38
7 France 68.00 60.14 4089.52
8 Germany 96.00 82.36 7906.56
9 Greece 33.00 11.02 363.66
10 Ireland 13.00 3.69 47.97
11 Italy 63.00 59.13 3725.19
12 Netherlands 79.00 16.10 1271.90
13 Norway 168.00 4.89 821.52
14 Spain 26.00 40.16 1044.16
15 Sweden 88.00 9.17 806.96
16 Switzerland 172.00 7.67 1319.24
17 U.K 32.00 59.22 1895.04
18 U.S 59.00 264.93 15630.87
WORLD CONSUMPTION OF FLOWERS AND PLANTS PER
CAPITA AND MARKET SIZE

34
2.8 VARIETIES OF DIFFERENT FLOWERS EXPORTED

• Rose

Scientific Name : Rosaceae

Native : -

Types : long stemed roses, medium stemed roses,

Short-stemmed roses, spar rose, miniature

roses

• Alstromeria

Scientific Name : Alstroemeria

Native : Peru, South Africa

Types : Passion, cosma, climax, taxi,

Venus Hot lips simile, golden eye.

• Antherium:

Scientific Name : Anthirium Andrea rum

Native : Columbia

Types : -

35
• Bird of Paradise

Scientific Name : sterilizareginae

Native : South Africa

Types : No varieties

• Cala lily:

Scientific Name : zantederchia aethiopica

Native : Egypt

Types : Yellow, red, maroon, indigo,

white rose

• Carnation:

Scientific Name : Dianthus caryophyllus

Native : Southern Europe

Types : Standard, spray, dianthus

• Chrysanthemum:

Scientific Name : Dendranthema indicum

Native : China, Japan

Types : Single,Anemones,Pompone,

Decorative, incurved, reflexed, sp spiders.

36
• Gerbera:

Scientific Name : Gerbera Jamesoni

Native : South Africa

Types : -

• Gladioli:

Scientific Name : Nortensis

Native : South Africa

Types : -

• Lilium:

Scientific Name : Lilium Sp

Native : Asia

Types : Asiatic,oriental,long

florum,LA Hybrids.

37
2.9 HORTICULTURE AND FLORICULTURE

Horticulture is an aspect of agriculture that includes the cultivation of

fruits and vegetables. It also covers floriculture, or the cultivation, or the

cultivation of flowers, and other agricultural practices.

Over the years horticulture has grown from a kitchen-garden kind of

activity into an organized area of agriculture. The increasing demand for

fresh and hygienically packaged fruits and vegetables offers new challenges

for those entering this field.

In the area of floriculture too, while the annual demand for flowers in

the domestic market continues to grow at a rate of 20% a year, the demand

in the international market is currently Rs.75,000 crores and supply is only

60% of this figure. The export potential for these products is very good and

therefore the prospects for horticulture specialists are extremely bright.

With technological advancement, great emphasis is also being put on

improving regular varieties of fruits and vegetables for processing purposes,

creating exotic species for decorative and commercial purposes, and mass

scale multiplication of species for increased productivity.

38
 With the liberalization of the Indian economy, the demand for agri

products has greatly increased.

Moreover, India’s advantageous geographical location, with its

varying soil and climatic conditions and the advantage of three harvests a

year, as well as an abundant labour force, provides many opportunities for

the growth of arrange of agri-products throughout the year.

Work

The work in floriculture broadly covers growing and maintaining

floriculture farms, parks and gardens, plant pathology, preservation and

marketing of flowers, and involves.

Production that covers the growing and harvesting of raw lowers

carried out mainly by farmers. Much of the work is that of farming,

involving management and supervision of agricultural practices for

maximizing yields. With the widespread commercialization of this activity,

there are now industrial houses, which handle large scale and scientific

cultivation of fruits and vegetables.

39
 Processing covers all aspects of handling flowers for distribution in

their natural form. New and scientific methods of farming have made it

possible to extend the shelf life of these perishables. Processing involves

various tasks, from the procurement of the raw material to the final

distribution of the product, which may remain in its natural form or be

packaged. In floriculture, this would involve the work of procurement of

seeds, and the collection and distribution in natural or packaged form for the

domestic and export market. Experienced floriculturists can become

plantation assistants or quality inspectors for commercial canning in quick-

freezing stations or packaging for the domestic and export market.

Gardening involves all aspects of cultivation of lowers, flowering

plants, shrubs, and ornamental trees for decorative purposes in gardens.

Grafting, collecting seeds and de-budding are some of the other functions,

which have to be performed. Development and maintenance of town and

country parks, picnic area, and golf course, as also landscaping of gardens,

lawns, hothouses and nurseries are other areas handled by horticulturists.

40
 In the area of Research, horticulturists look for ways to improve and

breed new varieties of fruits and vegetables or flowers, by the application of

scientific techniques such as tissue culture, micro-propagation, and embryo

culture etc. This would generally be undertaken in government-funded

research institutions, although there are such research and development

laboratories being set up by private sector companies in the business of

processing or marketing horticultural foods and flower. Development also

includes multiplication and distribution of planting material and

establishment of nucleus production centers.

There are also opportunities in Teaching and Advisory Services,

which would include motivation and liaison with marketing agencies within

the country and abroad.

Entry

Although it is possible to enter into the fields of horticulture and

floriculture without any formal training, it is advisable to have obtained

some formal training.

41
 To become a horticulturist, a candidate should join the agricultural

stream for a B.Sc. in agriculture or horticulture. Most colleges do not

conduct a separate course for horticulture at the under-graduate level, but

treat it as part of the academic curriculum of agriculture. An MSc in

horticulture however, offers specializations in floriculture, pomp logy

(cultivation of fruits), and floriculture (cultivation of vegetables).

Personal attributes required

Patience ability to put in long hours, often outdoor, and in varying

climatic conditions; perseverance; knowledge of seasonal plants, local plants

and soil etc.

42
 CHAPTER-3

3.1 GOVERNMENT RULES AND REGULATIONS

Flower trade in India is flourishing as many research centers and

special nurseries have turned into a promising business. Exports of

floriculture products were valued at Rs.700 million (US$ 20 million). There

has been an impressive growth in the export of cut flowers from Rs.10

million to Rs.700 million in the previous years. More than 191 export-

oriented units (EOUs) have been approved in the sector out of which 70 unit

or operational. However, many of them operate at less than 50% of their

capacity. With redress of the problem, the floriculture industry thus may turn

to be visible enterprise for earning foreign exchange.

Besides the development due to the efforts of Institute for

Horticultural research in Bangalore and Institute for Botanical Research, in

1970, another impetus was given to the business of cultivating flowers with

the establishment of the “Project for Improving Horticulture in India”.

43
3.2 FUNCTION OF BANKS

Because of liberalization of Indian economy, there is a craze for

export of Cut flowers like Roses, Gladioli, Gerberas, Anthurium, Dahlias,

Tube Roses, and Orchids. Production of standard Cut flowers involves high

technology combined with high cost.

Some major corporate leaders in the country have taken a lead to

joining the bandwagon to reap riches from flowers. Some of them are Tatas,

BrilasTatas, MRF Groups and R.P. Goenka Group. Because of the

prohibitive cost and risk involved, the formers are hesitant to take up this

venture. Entrepreneurs who gave inclination towards this venture can

approach Commercial Banks financial assistance.

The Commercial Banks besides giving financial assistance for various

operations also provide technical guidance for the successful implementation

of the project. The finance is provided for land preparation, setting up of

green House. Providing irrigation facilities, cultivation of crops,

transportation, etc,

44
3.3 STEPS TAKEN BY GOVERNMENT TO INCREASE

FLOWER EXPORT

• The government of India is working hard get the European

Community (EC) reduce the high rate of import duty on Indian cut

flowers. According to Commerce Ministry, the current rate of import

duty is fixed at 20 % and 15% according to season.

• Setting up cold storage unity at International Airports

• To further promote Floriculture, the Commerce Ministry is

contemplating duty exemption on the import of materials for Green

House and Tissue Culture Labs considering the huge capital inputs.

• The government is also working out a scheme to impart training to the

farmers and entrepreneurs.

• The government is working for an air fright subsidy for export of cut

flowers and exemption of export oriented units from requirement of

customs bonding

• Farmers are allowed to sell even to 50% of their produce in domestic

market.

• To total quarantine procedures have been simplified and made easy

for the expedition’s clearness, for the import of seeds and planting

materials.

45
• Import permit for Flower Seeds and Tissue Culture materials of plant

origin has been waived.

• Import duty on floriculture planting materials has been reduced from

55% to 10 %

• import duty on pre-cooling units and refrigerated transport units has

been reduced to 25%

• floriculture units can avail of duty free import if they export 50% of

their production

• for export of Tissue Culture Plants and Cut flower by air, subsidy on

air freight has been allowed up to a maximum of 25% of the

International Freight rate

• The Central Government has plans for setting up model Floriculture

Regional Centers at Chennai, Bangalore, Trivandrum, Pune, Luck

now, Kolkatta, Monali, Srinagar and Gangtok to conserve important

varieties of major flower crops of the region and arrange for large-

scale multiplication

• Organized training and demonstration on various aspects of

Floriculture and post harvest management

46
• To further promote floriculture, the Commerce Ministry of

contemplating duty exemption on the import of materials for green

House and Tissue Culture Labs considering the huge capital inputs.

• The government is also working for an air freight subsidy for export

of Cut Flowers and exemption of export oriented from requirement of

customs bonding.

• Farmers are allowed to sell even up to 50 % of their produce in

domestic market

• The government is also working out a scheme to impart training to the

farmers and entrepreneurs

• The total quarantine producers have been simplified and made easy

for the expeditions clearness, for the import of seeds and planting

materials

• Import permit for Flower Seeds and Tissue Culture materials of plant

origin has been waived

• Import duty on pre-cooling units and retriggered transport units has

been reduced to 25%

• Floriculture units can avail of the benefits of duty free imports of they

export 50% of their production

47
• For export if Tissue Culture plants and Cut Flower by air, subsidy on

air freight has been allowed up to a maximum of 25% of the

International Freight rate.

• The Central Government has plants for setting up model Floriculture

Regional Centers at Chennai, Bangalore, Trivandarm, Pune, Luck

now, Kolkatta, Mohali, Srinagar, and Gangtok to conserve important

varieties of major flower crops of the region and arrange for large-

scale multiplication.

• Organized training and demonstration on various aspects of

Floriculture and post harvest management.

48
3.4 FLORICULTURE: CURRENT STATUS, VISION AND

ACTION PLAN

Floriculture activity, defined for the purpose of this report as

consisting of Cut Flowers cultivated under controlled condition mainly for

export is growing in the world at around 6-10 percent annum. This is

supported by the demand in the developed countries of Europe, America,

Australia, Japan and Singapore. The climate condition in most this country

does not favor year around cultivation of these flowers and many of them

import flowers from other countries.

The major importing countries of Cut Flowers are Netherlands, USA,

Germany, France, UK, Switzerland, Italy and Japan. The major exporting

countries include Netherlands, Columbia, Ecuador, Israel, Spain and Kenya.

Being a major market for floriculture, Netherlands, Columbia, Ecuador,

Israel, Spain and Kenya. Being a major market for floriculture, Netherlands

both importing and re-exporting the flowers. The most important flower

traded in the international market is still Rose; How ever, others like

Chrysanthemum, Carnation, Gerbera, Dahlia, Poinsettia, Orchids and Lily

etc, are also marketed in large quantities in these countries.

49
 In spite of a long tradition of Agriculture and Floriculture, India’s

share in the international market for these flowers in negligible. During the

last ten years, taking advantage f the incentives offered by the government, a

number of Floriculture units were established in India for producing and

exporting flowers to be developed countries. Most if them were located

near Mumbai, Bangalore and Delhi and obtained the technical know – how

from Dutch and Israeli Consultants, almost all of them were capital intensive

and made large investments in greenhouse and other infrastructure. Several

of them are at present non- working. The major reasons for their failure were

lack of experience. Inadequate research support, inadequate market

knowledge and infrastructure and procedural problems.

Those who have survived the initial difficulties and are working have

increased the exporting of floricultural products of India and enabled the

country to become, although still small, an important player in the world

market. They have also diversified their exports and, besides Europe, have

reached to be countries of Singapore, Japan and Australia. Moreover, there

is also an increasing tendency of the Indian growers to directly send flowers

to the European countries rather than through Netherlands. In spite of this

achievement, the present health of the floriculture units is not exactly sound

50
and many of them are facing both routine problems as also long terms

financial and marketing difficulties.

To enable these units to function more efficiency and competitively

and to increase the volume of India’s exports, it is necessary to orient this

activity entirely from a new angle the first and the foremost policy change

dictated by the experience are to treat the entire floriculture activity, whether

it is catering to local demand or to the international demand, as an

agricultural activity and not as an industry.

The only difference between Agriculture and floriculture is that the

latter uses high technology like Polly-houses and refrigeration. However,

quite soon, the technological inputs in the entire Agricultural activities will

have to be upgraded and modernized on more lines that are scientific. By

declaring Floriculture as Agriculture, we will not only take a logical step,

but also we will ensure it certain benefits like income tax relief and will free

the grower from many procedural hassles and unnecessary regulatory

provisions. The second most important step will be to encourage a

“consortium” approach among the units step will be to encourage some of

the successful and experienced entrepreneurs to take a lead in forming such

51
consortia. They can also develop satellite farms and operate the existing

closed or semi-closed units a suitable waiver or postponement of their

liabilities. This world also necessitates the relief from Land Ceilings Act.

The other measures include more focused attention on the locations

near Mumbai, Bangalore and Chennai airports, encouraging establishment of

viable units of around 7-15 Ha, a very close linkage between governments,

research institution and flower growers, assistance for market development,

provision of infrastructure( which is extremely critical for Floriculture),

reduction in air freight charges, reduction on interest rates by Banking

institutions, waiver of excise duties on domestic sales and very focused

research on key areas. Training manpower development is also another

important area, which will assume critically in future. The use of

information technology and particularly, internet for trading should also be

promoted.

Under this scheme, special focus will be on the export of fruits,

vegetables, flowers minor forest produce and their value – added products.

Welcoming the government’s export initiatives, Federation of Farmers

Association (FFA) Chairman P.Chengal Reddy said

52
 “Bread-based export initiatives announced in the new exim policy will

boost the agri sector”.

Further, the government has liberalized various norms and regulation

for the import of seeds, bulbs, tubers and planting materials. This will

improve the over all quality of crops and production yield.

Sources from spices and foodstuff exporters association said:

“Permission for capital goods imported under EPCG for agriculture to be

installed anywhere in the Agri Export Zone will push up export activities

from the foodstuff industry.” Pune- based flower exporter B.S.Thankur said

“Till date, besides vegetable seed, no other products had received much

attention from the government. However, now farmers will be able to import

high quality flower seeds without much hassle and this will push up export

of floriculture in the long run.”

The government has also liberalized the norms for export of plant

portions, derivatives and extracts, which a view to promoting exports of

medicinal plants and herbal products. “It was a long standing demand to

simplify the export the procedures. Even, due to the stringent norms for

53
these segments, Indian growers can garner the opportunities in the

international market,” source from Chemical says, Indian agriculture

accounts for 22 per cent of GDP besides proving livelihood to 58 per cent of

country’s population. However, the agriculture industry has been suffering

from low yields per hectare except for wheat, volatility in production and

wide disparities of productivity over regions and crops.

In this direction, Mr. Reddy feels that, “The development programmer

should implemented in a specific time frame and the government should

educate the farmers before it actually implements for the users.” Lastly, Mr.

Reddy further said that, “The special focus need to be extended to non agri

export zones, to boost over a agri exports.”

54
3.5 COMMERCIAL FLORICULTURE

Commercial floriculture has been of recent origin through the traditional

flower cultivation has been going on for centuries. Emphasis has been

shifting from traditional flowers to cut flowers for export purpose. The

liberalization of economy since 1991-92 has given an impetus to the Indian

entrepreneurs for establishing export original floriculture unit under

controlled climate conditions. Maharastra, Karnataka, Andhra Pradesh and

Haryana have emerged as major floriculture centers in recent times.

55
3.6 APEDA AN OVERVIEW

Agricultural and Processed food Products Export Development

Authority

APEDA came into existence in 1986 to Further developing of our

agricultural commodities and processes food and to promote their export its
goals are to maximize foreign exchanges earnings through increased agri
exports, to provide better income to the farmers through higher unit value
realization and to create employment opportunities in rural areas by
encouraging value added export of farm produce’s APEDA went about
achieving these by identifying new markets, providing better support system
tour exports and manufactures and providing new increased from 5610 cores
in 2003.03 to 108,50 cores in 2005-06 because of APEDA activities can be
broadly classified into development programmes assistance schemes some
of the development programmes and assistance schemes are listed down

Development programmes:-

1) Development of data base on products, markets ad service.

2) Publicity and information dissemination
3) Organization of buyer – seller meets and other business interaction.

56
Assistance Schemes:-

1) Financial assistance under various schemes

2) Supply of samples to potential facilities
3) Development of international facilities
4) Research and Development
5) Quality up gradation

APEDA PRODUCTS A PREVIEW

• Fruits and Vegetables products

• Meat and Meat products
• Poultry and poultry products
• Diary products
• Confectionary Biscuits and Bakery products
• Honey, Jaggery an Sugar products
• Coco products
• Alcoholic and Non Alcoholic Beverages
• Cereal products
• Ground nuts Peanuts and Chutneys
• Pickles, Papads and Chutneys
• Guar gum
• Horticultural and Floricultural Product
• Herbal and Medicinal plants
• Rice (non-basmati)

57
 All exports of scheduled products are required by the APEDA act to be
registered with APEDA. An application in the prescribed format submitted
with D.D for Rs. 500/- and a certificate providing financial state of
applicants issued by a scheduled bank APEDA have set up in New Delhi,
Mumbai, Bangalore, Calcutta, Hyderabad and Gowahati
APEDA – website www.Apeda.delhi.dic.in APEDA come under ministry of
government of India.

58
 TABLE- 4.1

EXPORT OF FLOWERS FROM INDIA

YEAR VALUE PERCENTAGE

(in cores)

2001-2002 115.39 11.43

2002-2003 165.86 16.35
2003-2004 249.55 24.73
2004-2005 210.99 20.91
2005-2006 267.36 26.58

TOTAL 1009.15 100.00

INTERPRETATION

The above table shows the export percentage in export of flower from
India. There is a fluctuation in the table. The highest level was exported in
the year 2005-2006 with a percentage of 26.58% and the least was exported
in the year 2001-2002 with 11.43%

59
 EXHIBIT - 1

EXPORT OF FLOWERS FROM INDIA

30

25

20
PERCENTAGE

15 PERCENTAGE

10

0
2001- 2002- 2003- 2004- 2005-
2002 2003 2004 2005 2006
YEAR

60
 EXPORT OF FLOWERS FROM INDIA

YEAR Y X X XY
2001- 115.39 -2 4 -230.78
2002
2002- 165.86 -1 1 -165.86
2003
2003- 249.55 0 0 0.00
2004
2004- 210.99 1 1 210.99
2005
2005- 267.36 2 4 534.72
2006
Σ y=1009.15 Σ x=0 Σ x2=10 Σxy=349.07

The equation for straight line tread = a+b(x)

The equation is used to determine “a” and “b” as

A= Σ y = 1009.15 = 201.83
N
5

B= Σxy = 349.07
Σ x2 = 34.907
10
Substitute the value of “a” and “b” in the straight line trend equation.

Y=a+b(x)
= 201.83 + 34.907 (3)

= 201.83+ 104.72

-= 306.55

61
 TABLE=4.2

TREND PROJECTION FOR EXPORT OF FLOWERS

FROM INDIA (2006-2011)

YEAR VALUE
(in crores)
2006-2007 306.55

2007-2008 341.45

2008-2009 376.35

2009-2010 411.25

2010-2011 446.15

62
 EXHIBIT - 2

TREND PROJECTION FOR EXPORT OF FLOWERS

FROM INDIA (2006-2011)

500

450

400

350
VALUE (in crores)

300

250 VALUE (in crores)

200

150

100

50

0
2006- 2007- 2008- 2009- 2010-
2007 2008 2009 2010 2011
YEAR

63
 TABLE- 4.3

EXPORT OF FLOWERS TO AUSTRALIA

YEAR VALUE PERCNTAGE

(in lakhs)
2001-2002 209.15 10.87
2002-2003 228.98 11.91
2003-2004 516.08 26.83
2004-2005 441.55 22.96
2005-2006 527.46 27.43
Total 1923.22 100.00

INTERPRETATION

The above table shows the export percentage of growth in exporting

of flower from India. There is a fluctuation in the table. The highest level
was exported in the year 2005-2006 with a percentage of 27.43% and the
least was exported in the year 2001-2002 with 10.87%.

EXHIBIT - 3

64
 EXPORT OF FLOWERS TO AUSTRALIA

30

25

20
PERCNTAGE

15 PERCNTAGE

10

0
2001- 2002- 2003- 2004- 2005-
2002 2003 2004 2005 2006
YEAR

65
 EXPORT OF FLOWERS TO AUSTRALIA

YEAR VALUE X X XY
2001-2002 209.15 -2 4 -418.30

2002-2003 228.98 -1 1 -228.98

2003-2004 516.08 0 0 0

2004-2005 441.55 1 1 441.55

2005-2006 527.46 2 4 1054.92

Σ y=1923.22 Σ x=0 Σ x2 =10 Σxy=849.19

The equation for straight line tread = a+b(x)

The equation is used to determine “a” and “b” as

A= Σ y =1923.22 = 384.644
N
5

B= Σxy =849.19
Σ x2 = 84.919
10

Substitute the value of “a” and “b” in the straight line trend equation.
Y= a+b(x)

= 384.644+84.919 (3)

= 384.644+ 254.757
= 639.401

66
 TABLE- 4.4

TREND PROJECTION FOR EXPORT OF FLOWERS TO

AUSTRALIA (2006-2011)

YEAR VALUE(in lakhs)

2006-2007 639.40

2007-2008 724.32

2008-2009 809.24

2009-2010 894.15

2010-2011 979.08

67
 EXHIBIT - 4

TREND PROJECTION FOR EXPORT OF FLOWERS TO

AUSTRALIA (2006-2011)

1200

1000

800
VALUE(in lakhs)

600 VALUE(in lakhs)

400

200

0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
YEAR

68
 TABLE- 4.5

EXPORT OF FLOWERS TO CANADA

YEAR VALUE PERCETAGE

(in lakhs)
2001-2002 82.89 9.05
2002-2003 115.51 12.62
2003-2004 234.84 25.65
2004-2005 223.44 24.41
2005-2006 258.76 28.27
Total 915.44 100.00

INTERPRETATION

The above table shows the export of flower to Canada. There is a

fluctuation in the table. The highest level was exported in the year 2005-
2006 with a percentage of 28.27% and the least was exported in the year
2001-2002 with 9.05%.

69
 EXHIBIT - 5

EXPORT OF FLOWERS TO CANADA

30

25

20
PERCETAGE

15 PERCETAGE

10

0
2001- 2002- 2003- 2004- 2005-
2002 2003 2004 2005 2006
YEAR

70
 EXPORT OF FLOWERS TO CANADA

YEAR Y X X XY
2001-2002 82.89 -2 4 -165.78
2002-2003 115.51 -1 1 -115.51
2003-2004 234.84 0 0 0
2004-2005 223.44 1 1 223.46
2005-2006 258.76 2 4 517.52
2
Σ y=915.44 Σ x=0 Σ x =10 Σxy=459.69

The equation for straight line tread = a+b(x)

The equation is used to determine “a” and “b” as

A= Σ y =915.44 = 183.088
N
5

B= Σxy = 459.69
Σ x2 =45.969
10

Substitute the value of “a” and “b” in the straight line trend equation.

Y=a+b(x)

=183.088 +45.969 (3)

= 183.088 + 137.907

= 320.995

71
 TABLE-4.6

TREND PROJECTION FOR EXPORT OF FLOWERS TO

CANADA(2006-2011)

VALUE
YEAR (in crores)
2006-2007 320.995

2007-2008 366.964

2008-2009 412.933

2009-2010 458.902

2010-2011 504.871

72
 EXHIBIT - 6

TREND PROJECTION FOR EXPORT OF FLOWERS TO

CANADA(2006-2011)

600

500

400
VALUE

300 VALUE

200

100

0
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
YEAR

73
 TABLE-4.7

EXPORT OF FLOWERS TO CHINA

YEAR VALUE PERCENTAGE

(in lakhs)
2001-2002 13.92 4.72
2002-2003 51.23 17.38
2003-2004 62.32 21.14
2004-2005 79.70 27.03
2005-2006 87.64 29.73
Total 294.81 100.0

INTREPRETATION

The above table shows the export of flower to china. There is a

fluctuation in the table. The highest level was exported in the year 2005-
2006 with a percentage of 29.37% and the least was exported in the year
2001-2002 with 4.72%.

74
 EXHIBIT - 7

EXPORT OF FLOWERS TO CHINA

35

30

25
PERCENTAGE

20
PERCENTAGE
15

10

0
2001- 2002- 2003- 2004- 2005-
2002 2003 2004 2005 2006
YEAR
EXPORT OF FLOWERS TO CHINA

75
 YEAR Y X X XY
2001-2002 13.92 -2 4 -27.84
2002-2003 51.23 -1 1 -51.23
2003-2004 62.32 0 0 0
2004-2005 79.70 1 1 79.70
2005-2006 87.64 2 4 175.28
2
Σ y=294.81 Σ x=0 Σ x =10 Σxy=175.91

The equation for straight line tread = a+b(x)

The equation is used to determine “a” and “b” as

A= Σ y = 294.81 = 58.962
N
5

B= Σxy = 175.91
Σ x2 =17.591
10

Substitute the value of “a” and “b” in the straight line trend equation.

Y=a+b(x)

=58.962 +17.591 (3)

= 58.962 + 52.773

= 111.735

76
 TABLE-4.8
TREND PROJECTION FOR EXPORT OF FLOWERS TO
CHINA (2001-2006)

YEAR VALUE(in crores)

2006-2007 111.735

2007-2008 129.326

2008-2009 146.917

2009-2010 164.508

2010-2011 182.099

EXHIBIT - 8

77
TREND PROJECTION FOR EXPORT OF FLOWERS TO
CHINA (2001-2006)

200

180

160

140
VALUE(in crores)

120

100 VALUE(in crores)

80

60

40

20

0
2006- 2007- 2008- 2009- 2010-
2007 2008 2009 2010 2011
YEAR
TABLE-4.9

EXPORT OF FLOWERS TO SPAIN

78
 YEAR VALUE PERCENTAGE
(in lakhs)
2001-2002 392.02 24.41
2002-2003 215.59 13.42
2003-2004 333.08 20.74
2004-2005 299.00 18.61
2005-2006 366.47 22.82
Total 1606.16 100.00

INTERPRETATION

The above table shows the export of flower to Spain. There is a

fluctuation in the table. The highest level was exported in the year 2001-
2002 with a percentage of 24.41% and the least was exported in the year
2002-2003 with 13.42%

79
 EXHIBIT - 9

EXPORT OF FLOWERS TO SPAIN

30

25

20
PERCENTAGE

15 PERCENTAGE

10

0
2001- 2002- 2003- 2004- 2005-
2002 2003 2004 2005 2006
YEAR

80
 EXPORT OF FLOWERS TO SPAIN

YEAR Y X X XY

2001-2002 392.02 -2 4 -784.04

2002-2003 215.59 -1 1 -215.59
2003-2004 333.08 0 0 0
2004-2005 299.00 1 1 299.00
2005-2006 366.47 2 4 732.94
Σ y=1606.16 Σ x=0 Σ x2 =10 Σxy=32.31

The equation for straight line tread = a+b(x)

The equation is used to determine “a” and “b” as

A= Σ y =1606.16 = 321.232
N
5

B= Σxy = 32.31
Σ x2 = 3.231
10

Substitute the value of “a” and “b” in the straight line trend equation.

Y=a+b(x)

= 321.232+ 3.231 (3)

81
=321.232 + 9.693

= 330.925

82
 TABLE-4.10

TREND PROJECTION FOR EXPORT OF FLOWERS TO

SPAIN (2006-2011)

YEAR VALUE(in crores)

2006-2007 330.925
2007-2008 334.156
2008-2009 337.387

2009-2010 340.618
2010-2011 343.849

83
 EXHIBIT - 10

TREND PROJECTION FOR EXPORT OF FLOWERS TO

SPAIN (2006-2011)

345

340
VALUE(in crores)

335

VALUE(in crores)

330

325

320
2006- 2007- 2008- 2009- 2010-
2007 2008 2009 2010 2011
YEAR
TABLE-4.11

EXPORT OF FLOWERS TO FRANCE

YEAR VALUE PERCENTAGE

(in lakhs)
2001-2002 519.44 16.32
2002-2003 639.02 20.08

84
 2003-2004 813.87 25.58
2004-2005 527.14 16.57
2005-2006 682.36 21.45
Total 3181.83 100.00

INTERPRETATION

The above table shows the export of flower to France. There is a

fluctuating level in the table. The highest level was exported in the year
2003-2004 with a percentage of 25.58% and the least was exported in the
year 2001-2002 with 16.32%.

EXHIBIT - 11

EXPORT OF FLOWERS TO FRANCE

85
 30

25

20
PERCENTAGE

15 PERCENTAGE

10

0
2001- 2002- 2003- 2004- 2005-
2002 2003 2004 2005 2006
YEAR

86
 EXPORT OF FLOWERS TO FRANCE

YEAR Y X X XY
2001-2002 519.44 -2 4 1038.88
2002-2003 639.02 -1 1 639.02
2003-2004 813.87 0 0 0
2004-2005 527.14 1 1 527.14
2005-2006 682.36 2 4 1364.72
2
Σ y=3181.83 Σ x=0 Σ x =10 Σxy=213.96

The equation for straight line tread = a+b(x)

The equation is used to determine “a” and “b” as

A= Σ y =3181.83 = 636.366
N
5

B= Σxy = 213.96
Σ x2 =21.396
10

Substitute the value of “a” and “b” in the straight line trend equation.

Y= a+b(x)

=636.366 +21.396 (3)

= 636.366 + 64.188

= 700.554

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 TABLE-4.12
PROJECTION FOR EXPORT OF FLOWERS TO FRANCE
(2006-2011)

VALUE
YEAR (in crores)
2006-2007 700.554

2007-2008 721.950

2008-2009 743.346

2009-2010 764.742

2010-2011 786.138

88
 EXHIBIT - 11

PROJECTION FOR EXPORT OF FLOWERS TO FRANCE

(2006-2011)

780

760

740
VALUE(in crores)

720 VALUE

700

680

660
2006-2007 2007-2008 2008-2009 2009-2010
YEAR

89
 5.1 CONCLUSION
5.1.1 FINDINGS

 The importance of floriculture is increasing these days around 65000

hectares of land is under
 The world floriculture trade is estimated to be around $ 50 billion that
includes cut flowers, potted plants, foliage, unit blooms and other
floral plant
 In world marketing, India floriculture industry is witnessing an
unprecedented growth and increasing acceptability.
 The major import countries of cut flowers are Netherlands, U.S.A,

Germany, France, U.K, Switzerland, Italy and Japan

 The major exporting countries include Netherlands, Columbia,

Ecuador, Israel, Spain and Kenya.

 The liberalization process initiated by the GOI has attracted several
Multinational Companies in to the horticulture sector link the
Floriculture and processing of horticulture products.
 The Govt allows subsidy on airfreight for export of cut flowers and
tissue cultured plant.
 Direct subsidy up to 50 % of the pre-cooling and cold storage units Is

available as well as subsidy for using important packaging Material is

given by APEDA.
 Packing is complex as the flower and plants are highly perishable and

it increases the cost.

 Import of technology, which includes plants and Equipments, is

becoming much easier because of liberalization.

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  Refinance assistance is available from NABARD to a number of Hi-

tech units at reasonable interest rate.

5.1.2 SUGGESTION’S

 Some new airlines can be operated especially for export of flowers.

 The flower exporter’s should concentrate on small farmer’s and

motivate them towards increasing their production.

 Government warehouses can be opened for the beneficiary of
exporters.
 Adequate refrigerated transport and storage facilities can be
adopted to improve the export level.
 Import duty should be reduced on planting materials and
equipment.
 Establishment of model nurseries for supplying genuine planting
material helps the exporters.
 Co-operative florist organizations should be established at regional
level.
 Exporters should plant and monitor effective quality control
measures right from production to post harvesting.
 Analysis of strengths, weakness, and opportunities threats will help
To develop the industry.

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 The floriculture industry in India primarily depends upon the auction
centers across the globe for marketing its product worldwide .The Indian
harvesting mainly send their harvested buds directly to the auction
Center in Holland, Germany, Belgium, etc., There are over 160 Hi-tech
green houses for rose plants in Bangalore and Nilgiris.

In spite to a long tradition of Agriculture and floriculture, India’s

Share in the international market for these flowers is negligible. During the
last 10 years, taking advantage of the incentives offered By the Govt, a
number of floriculture units were established in India. If government takes
certain essential steps to improve the Airfreight charges and import duty,
India is likely to achieve a better Position in the world market.

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 BIBLIOGRAPHY

Web sites:-

www.apeda.com

www.flowersindia.com

www.indiancommodity.com

Books for Reference

Research Methodology:- C.R. Kothari

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