The Hindu Business Line : `Steep air freight rates hurting flower exports'

Agri-Biz & Commodities - Floriculture
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Industry & Economy - Exports & Imports

`Steep air freight rates hurting flower exports'

Ch. R. S. Sarma

Visakhapatnam , Aug 22

THE country's immense potential for exporting flowers to Europe, the US, and Japan is largely unutilised due to the steep air freight and the lack of Government support, according to Mr K.S Ramakrishna, Managing Director of Karuturi Floritech.

In an interview, Mr Ramakrishna, who has been conferred with an honorary fellowship by the Gitam Institute of Foreign Trade (GIFT), said that African countries were ahead of India by miles due to lower freight rates.

"We are a poor third player in floriculture exports, with Africa and South America occupying the first two slots. Our annual exports amount to hardly Rs 500-600 crore compared to Kenya's $1 billion. Even Ethiopia exports flowers worth $300 million a year," he said.

According to him, it would require $2.7 or so to export one kg of flowers from India, whereas the same quantity could be sent from Africa for $1.5. "Therefore, we are losing out to the African nations. We are not competitive in the international market."

He said the aviation turbine fuel costs in India were very high, but the Government could offer freight subsidies to boost flower exports. "We have represented to the Union Commerce Ministry, the Union Agriculture Ministry, and the APEDA several times on the crucial issue. The exim policy does allow such incentives for floriculture. We are hopeful of a positive response."

Mr Ramakrishna said Karuturi Floritech had set up another unit on the outskirts of Addis Ababa, the capital of Ethiopia, solely to export cut roses.

"Our Bangalore unit has a capacity of 15 million stems of roses and the African unit 50 million stems. Last year we exported roses worth Rs 15 crore from Bangalore. This year we expect a turnover of Rs 25 crore. From Africa we expect to export roses worth Rs 65 crore this year, the first year of operations. We are confident of touching the Rs 100-crore mark next year," he said.

According to him, the company grows 24 varieties of hybrid roses, in five primary colours and different colour combinations.

Karuturi exports roses to the Czech Republic, the UK, Poland, Canada, and Australia. The vase life of the roses was two weeks, he said.

Mr Ramakrishna, who hails from Tanuku in West Godavari district of Andhra Pradesh, was President of the Floriculture Exporters' Association of India for four years. He has also been featured in Time magazine as a young agri entrepreneur from India.

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