Rose growers hope local market will flower as Europe turns thorny

With a growing domestic market for roses and a slow decline in international demand , Indian producers are focusing on domestic consumption to boost sales this Valentine’s day.

Jaison Prathish, Chief Executive Officer, Jaiho Exports, a rose exporter based in Hosur, said orders from their biggest clients in UK and West Asia have plummeted this year. The company exports around 10,000 to 1 lakh bunches every year, each bunch containing 20 Dutch roses.

“This year so far the orders are less than 10,000. We usually add new clients every year but this year we were not able to add any,” he added. According to Prathish, economic slowdown in European countries and fall in crude oil prices have affected the demand from the UK and West Asia. Most of the floriculture community in Hosur is facing similar issues, he added.

Agreeing that the company is witnessing significant reduction in orders this year, Rajesh A Kumar, Rose trader – Moerheim India, said, Valentine’s day falling on Sunday and right after Ash Wednesday is also the reason for decline apart from European crisis. Ash Wednesday fell on February 10 this year. “We are planning to boost the sales by expanding our domestic market,” he added.

In addition production of roses suffered in January due to fickle weather. According to an official from Tanflora, an agri export zone for roses, the temperature was not uniform like previous years and kept fluctuating throughout January affecting the rose harvest.

Praveen Sharma, President of Pune-based Indian Society of Floriculture Professionals (ISFP) and Chief Consultant at Flora Consult, said though warmer winter and rain had affected production in the beginning of January, the industry recovered and the Valentine’s Day export has started on a good note. Sharma said, depreciation in value of Indian Rupee has helped increase export value.

Last year during February, India exported about 17 million flowers and exports have touched 6 million by February 5 and some large shipments are due. The UK is the biggest buyer of Indian roses with major share of 30 per cent, followed by Australia and Japan that account for 19 per cent and 17 per cent respectively of total exports.

“But the focus on the international market has been coming down in the past few years and rose cultivators are now concentrating on expanding the domestic market,” he added.

Earlier around 70 per cent of the total rose production was exported but now around 60 per cent of the roses produced are consumed domestically. With the rising middle class and fast developing tier 2 and tier 3 cities, the domestic market is growing at the CAGR of 23 per cent, he added.

Sharma said, “Price corrections have also boosted domestic sale. A bunch will cost around ₹200-₹240 this year, which is an attractive price for cultivators.”

But one of the major concerns for the florists this year is that as Valentine’s day falls on a Sunday, there is a possibility of decline in sale of roses from office and college goers. Sharma said, “However, the supermarket segment gets a boost, due to increased family outings on weekends.”

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