Business Daily from THE HINDU group of publications
Monday, Jul 31, 2006
Business Daily from THE HINDU group of publications Monday, Jul 31, 2006 |
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Agri-Biz & Commodities
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Floriculture Industry & Economy - Exports & Imports APEDA plans fund for floriculture industry Rahul Wadke
"The farms are still using old planting material, which has led to dip in quality and quantity of flowers. Financial assistance will help buy the planting material, which is only available overseas," the APEDA Chairman, Mr K.S. Money, said.
Mumbai , July 30 The Agricultural and Processed Food Products Export Development Authority (APEDA) is considering setting up a fund to help the floriculture industry. Over the last five years, the industry is in recession with more than 40 per cent floriculture farms in shut-down mode. Talking to Business Line, the APEDA Chairman, Mr K.S. Money, said that the fund would primarily help buying new planting material. The industry is in the red as the farms have huge overhead costs and do not have adequate returns.
Planting material
"The farms are still using old planting material, which has led to dip in quality and quantity of flowers. Financial assistance will help buy the planting material, which is only available overseas," Mr Money said. The floriculture exports are worth about Rs 305 crore and the domestic business is in the region of Rs 600 crore.
Competition
Mr Money said that that the domestic floriculture industry was facing stiff competition from African countries. Kenyan floriculture companies can sell below Indian prices, as they have to pay 50 per cent less freight cost. Rise in air traffic from India has not resulted in reduction of freight cost. Government help is needed to reduce freight charges, he said. Some Indian companies have set up offices in Africa, as the average farm size is 40 acres, where as in India it is 4 acres, he said. Mr Money said that to further encourage the floriculture industry, the APEDA, with the help of the Union Commerce Ministry, is setting up five market-cum-auction centres across the country. The Ministry has given a one-time grant of Rs 25 crore for setting up the facilities. The centres are coming up Mumbai, Bangalore, Noida and Kolkata. The Mumbai centre will be set up in four months and the Bangalore centre in two months time, he said.
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