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G K Nair Kochi, Aug. 28 India can be a major supplier of flowers in the international market and raise its share from the current level of less than one per cent of the $11 billion world trade provided it makes use of diversity in climate.

“We should address some of the constraints impeding our competitiveness in the world market,” according to a report of the Task Force on Plantation Sector headed by Mr N. Rangachary.

According to the report, trade in floriculture is one of the most rapidly expanding global enterprises, today. The international trade in this segment is expected to grow to $16 billion by the year 2010 from $11 billion. Although, the value of export of floriculture products from the country has registered impressive growth from Rs18.83 crore in 1993-94 to Rs 305 crore in 2005-06, India is still a marginal player in the world trade.

India produces a wide variety of flowers including rose, chrysanthemum, marigold, jasmine, heliconias, and carnations in 1,15,921 hectares spread over Tamil Nadu, Karnataka, Haryana, Andhra Pradesh, Maharashtra, West Bengal and Gujarat. The total production in 2004-05 touched 6,54,837 tonnes , which included open air and green house cultivation.

The Department of Commerce, the report said, was concerned with the export-oriented floriculture and 500 hectares is presently under green house cultivation.

Besides, it said, steps are underway to assist in rehabilitation of the sick units. It will pave the way for renewed interest and activity in this sector, which has a very good potential for exports and job creation.

The growth in exports would generate rural employment and income to the farmers and bring in efficiency to the entire production process through better technology and international quality standards, it said.

A large number of floriculture units had come up during the early 1990s with focus on exports. For various reasons they could not perform well and a large number of them are sick and laden with non-performing assets(NPAs). APEDA had entrusted a study of these units with a view to assist in their revival. The reasons for their sickness range from lack of due diligence on the risks associated with the projects on the part of the promoters due to lack of technical knowledge, high capital costs, poor yields, order varieties etc, the report found.

But, most of the floriculture units are not operationally sick, i.e., at the operational level the business is generating profits, albeit only at a marginal level and most units do make cash profits before providing for their interest payment. However, due to the high interest burden most units have become financially sick and unable to repay loans .

More Stories on : Floriculture | Climate & Weather

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